Australian Superannuation Funds Boosted Returns Last Year By Buying International Shares

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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 fund’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.

Source: SuperRatings.

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