Australian superannuation funds closed out 2014 up about 7.5% by executing a strategy of buying international shares.
Research firm SuperRatings said in a note today investments in international stocks and the falling Aussie dollar were behind funds’ returns.
“Australian superannuation fundâ€™s weighting to International Shares was the biggest drivers of returns over the year, with the MSCI World Index returning 3.3% in US Dollar terms.
Superannuation funds benefited from the falling Australian Dollar, which experienced a 7.9% drop against the US Dollar during the calendar year, further driving returns.
“Australian shares produced a modest return for the year, adding only 1.4% for the 12-month period.”
Here’s the chart.