Provided by Garrie Lette, Chief Investment Office, Catholic Super

The 2010/11 financial year looks like being a second successive very favourable year for Australian superannuation investors. Returns are likely to be in the region of 10%, give or take a percent or two depending on market developments in the last couple of weeks of the year and on the particular strategy adopted.

At Catholic Super, we focus on long term returns as year-by-year numbers can fluctuate significantly. We prefer to concentrate on medium to long term periods as we believe that this is right for our members, and it allows us to avoid getting caught up in the short term market ups and downs which generally smooth out over the longer term.

Nevertheless, 2010/11’s very strong returns will have the effect of boosting the longer term numbers. As at April 2011, the seven year return on our Balanced Option was 7.78% pa, which is a very healthy margin above inflation over the same period of 3% pa. Our Balanced Option’s return over the 5 year period ending April 2011 was significantly lower at 4.19% pa, due to the fact that this period included the global financial crisis (GFC) and only a couple of years either side of the GFC.

It is also pleasing that our results have been very favourable relative to our peers, placing us well into the top quartile of industry surveys over both periods.

30 April 2011
Investment Option	Returns (% p.a.)
Catholic Super Balanced	7 years	7 year Benchmark*	5 years	5 year Benchmark*	FYTD	FYTD Benchmark*
	7.78%	6.31%	4.19%	2.42%	12.15%	9.56%

* Source: SuperRatings Benchmark Report 30 April 2011

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