Everyday Super Q2 market update: global market fears impact performance

While markets began the second quarter of 2015 with a bullish bias, this was quickly erased by fears about the Greek and Chinese markets. This weighed down the performance of the local and global equities markets for most of the quarter.

Markets started the second quarter of 2015 with high expectations, largely as a result of the European Central Bank (ECB) continuing to stimulate the economy through quantitative easing. This, combined with better economic growth data from the US and an expectation of a normalisation of interest rates in the US, contributed to this positive sentiment.

By the end of the quarter, however, markets were preoccupied with Greece defaulting on its International Monetary Fund (IMF) loans and a potential “messy” exit from the European Union. Another area of concern was the slowdown in China. Over the quarter, Chinese authorities had eased monetary policy to bolster growth in that economy.  

Given this backdrop, it’s not surprising the MSCI All Countries World ex Australia index (unhedged for the Australian dollar) started and ended the quarter at much the same level. The Australian dollar hedged version of the index performed in line with the unhedged version.

At a sector level (in local currency terms), telecommunications services and financials were the best performing sectors across the quarter. Utilities and industrials were the worst performing sectors.

At a country level equities in Hong Kong, Japan and the UK were the best performing of all share markets. In fact, the Japanese share market is the best performing equities market so far this year and valuations for Japanese shares remain attractive compared to other developed markets. The prospect of improved corporate governance practices in Japan is likely to further buoy this market.

Overall, however, trends in global markets had a negative impact on the local bourse during the second quarter. The S&P/ASX 300 Accumulation Index fell by 6.5 per cent across the period, giving back a significant portion of gains made earlier in 2015. The Australian financials sector was hit hard by the prospect of weaker earnings and sluggish economic growth. Pressure from regulators on banks to hold more capital also weighed down the value of financial institutions’ shares.

Consumer staples suffered over the quarter, with the share prices of Woolworths’ and Wesfarmers’ shares declining sharply. In contrast, energy and industrial businesses were the top performers over the period.

Retail sales were below market expectations across the quarter. There was also a large increase in Australia’s trade deficit, driven by the sharp decline in commodity prices.

Despite no material announcements in the sector, Australian real estate investment trusts (REITs) also experienced a decline, with investments in this asset class dropping by two per cent over the quarter.

The value of global REITs (based on the FTSE EPRA NAREIT Global Developed Index, hedged for the Australian dollar) dropped by seven per cent over the quarter. This is largely because US properties were negatively impacted by the prospect of higher US rates. European properties also lagged their peers as investors became increasingly concerned about Greek debt negotiations.

These trends have also continued to play out in the third quarter.


How Suncorp’s Lifestage Fund works

Suncorp’s Lifestage Fund moves from a growth to an income bias throughout each member’s life. These adjustments happen as the member ages and their preference to preserve their capital rises.

As experienced in the recent quarter, sharp market declines can happen at any stage of a member’s life. In such times, Lifestage Fund members who are closer to retirement, and who have less time to generate future income, are less at risk of incurring significant losses thanks to the defensive nature of the portfolio.

Conversely, investors who are further away from retirement have higher growth asset allocations because they have more time to ride out periods of market volatility.

While the market outlook remains uncertain, the Lifestage Fund offers members an opportunity to generate risk-adjusted returns, balancing the need to grow their savings with reduced risk of undue capital loss.


How have your investments performed?

To see your super fund’s performance figures, find the Suncorp Lifestage Fund for the year you were born in the table below.

For example, if you were born in 1986 and you left it to us to decide where to invest your money when you joined Everyday Super, you’re in the1985-89 Suncorp Lifestage Fund.


1. Suncorp Lifestage Fund

Suncorp Lifestage Fund performance as at 30 June 2015


Suncorp Lifestage Fund(your year of birth) Inception date(i.e. when the fund began) Fund performance since inception (% ) Fund one-year Performance to 30 June 2015 (%)
1934 or earlier 9 April 2013 4.85 4.92
1935-39 15 Aug 2013 4.27 4.64
1940-44 4 Feb 2013 4.58 4.55
1945-49 16 Jan 2013 4.79 4.83
1950-54 31 Dec 2012 5.37 5.27
1955-59 11 Dec 2012 6.40 6.02
1960-64 16 Jan 2013 7.36 7.14
1965-69 24 Dec 2012 9.03 8.64
1970-74 8 Jan 2013 10.57 10.12
1975-79 21 Jan 2013 11.45 11.24
1980-84 18 Dec 2012 12.54 11.69
1985-89 21 Dec 2012 12.57 11.90
1990-94 9 Jan 2013 12.84 12.01
1995-99 18 Dec 2012 13.01 12.13


2. Single sector investment options

If you decided to create your own investment mix you will be invested in one of our single sector funds.

Single sector investment options’ performance as at 30 June 2015


Investment option

Inception date

(i.e. when the fund began)

Fund performance since inception (%)

Fund one-year

Performance to 30 June 2015 (%)

Suncorp Cash Fund

11 Dec 2012



Suncorp Australian Fixed interest Fund

10 Dec 2012



Suncorp Property Fund

11 Dec 2012



Suncorp Australian Shares Fund

10 Dec 2012



Suncorp International Shares Fund

19 Dec 2012




Like to learn more?

Go to your online account to see how your super has grown or go to our fund performance section on the Suncorp website.


^ We calculate investment performance using the withdrawal unit price for each investment option, in accordance with industry standards. Performance is calculated net of taxes and fees such as the investment fee and administration fees. However, we don’t take into account contributions taxes and any discretionary ongoing fees such as insurance fees and adviser service fees.  Past performance of Suncorp Lifestage Fund is not indicative of future performance.

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