Strategy 2: Invest for the long-term
Long-term, low-cost investing
Our performance
Graphs 2.10 and 2.11 show the annual net earning rate for each of VicSuper's investment options for VicSuper Scheme, VicSuper Beneficiary Account and VicSuper Pensions. They demonstrate how returns can vary significantly from year-to-year, especially in options with a higher allocation to growth assets such as Balanced, Growth and Equity Growth. For example in 2002/03 Equity Growth returned -4.59%, and in 2006/07 returned 20.46%.
Graph 2.10 Annual net earning rates for VicSuper Scheme and VicSuper Beneficiary Account (%)
Past performance is not a reliable indicator of future performance.
Graph 2.11: Annual net earning rates for VicSuper Pensions (%)
Past performance is not a reliable indicator of future performance.
No tax is payable on investment earnings for VicSuper Pensions.
The net earnings rates shown for June 2001 and 2002 are for VicSuper Allocated Pension.
Net earning rates are calculated by using the gross annual investment return less tax (up to 15%) on the return. There is no tax payable on the returns of VicSuper Pensions.
Graphs 2.12 and 2.13 show the five-year compound average net earning rates for investment options in VicSuper Scheme, VicSuper Beneficiary Account, and VicSuper Pensions superannuation benefit plans. The Capital Secure investment option was introduced in 2003/04 so does not have a five-year performance history. The comparatively lower five-year returns of the higher growth options reflect company share price falls in equity markets in 2002/03, particularly in international markets. Graph 2.14 shows 10 year compound average net earnings rates for VicSuper Scheme and VicSuper Beneficiary accounts for the Cash, Capital Stable and Growth options. VicSuper Allocated Pension started in April 2000 so 10 year data is not available.
On 1 July 2004 VicSuper changed from crediting rates (from which VicSuper's management fee of 0.50 per cent had already been deducted) to net earning rates, which do not include the deduction of VicSuper's management fee. VicSuper's management fee is now deducted directly from member accounts as at 30 June each year or on closure of an account.
For the purposes of the graphs on this page, crediting rates for the financial years from 2000/01 to 2003/04 have been recalculated to be consistent with the methodology for calculating net earning rates used from 1 July 2004.
Please note that past performance is not a reliable indicator of future performance.
Graph 2.12: Five-year compound average net earning rates for VicSuper Scheme and VicSuper Beneficiary Account to 30 June 2007 (% pa)
Past performance is not a reliable indicator of future performance.
The Capital Secure investment option does not have a 5 year return history.
Graph 2.13: Five-year compound average net earning rates for VicSuper Pensions to 30 June 2007 (% pa)
Past performance is not a reliable indicator of future performance.
No tax is payable on investment earnings.
Net earning rates shown are for VicSuper Allocated Pension.
The Capital Secure investment option does not have a 5 year return history.
Graph 2.14: Ten-year compound average net earning rates for VicSuper Scheme and VicSuper Beneficiary Account to 30 June 2007 (% pa)
Past performance is not a reliable indicator of future performance.
The Capital Secure, Balanced, Equity Growth and Equity Growth Sustainability investment options do not have a 10 year return history.
In 2006/07 VicSuper invested in 229 Australian companies and 1,447 international companies. Company holdings can be found on our website.
