AvSuper https://www.avsuper.com.au Super for the aviation industries Tue, 27 Nov 2018 01:35:49 +0000 en-AU hourly 1 https://wordpress.org/?v=4.9.8 AvSuper is the members’ choice, again! https://www.avsuper.com.au/avsuper-is-the-members-choice-again/ Thu, 22 Nov 2018 00:15:28 +0000 https://www.avsuper.com.au/?p=11223 We just wanted to share that AvSuper has just won the Selecting Super Members’ Choice Award for the second* year running

2018 members choice award certificate

We truly appreciate your support and your faith in us, especially those of you who voted for us, and want to say thank you! 

 Some AvSuper Directors, staff and I were present at the Selecting Super awards ceremony and it was a lovely surprise to hear our name called out, and then to receive the award on your behalf.

four people holding a certificate and award for AvSuper

Lawrie Cox (award winning Director), Sue Field (Investments Manager), Michelle Wade (CEO), George Fishlock (Chair)

I would like to also thank all our dedicated staff who work so hard to provide high quality, personalised service to our members – without our great team, achieving this award would not be possible.

Michelle

Michelle Wade CEO

* Last year we won the inaugural Consumer’s Choice Award – the name has been changed for 2018 but it is the same award!

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Industry Service Award for AvSuper Director https://www.avsuper.com.au/industry-service-award-for-avsuper-director/ Wed, 21 Nov 2018 23:05:51 +0000 https://www.avsuper.com.au/?p=11188 It is with great pleasure that I announce that AvSuper Trustee Director, Lawrie Cox, has been awarded an Industry Service Award at the Rainmaker SelectingSuper Awards this morning.

portarait of Lawrie Cox, AvSuper Board Director

Lawrie Cox, AvSuper Trustee Director

This recognises the 33 years Lawrie has contributed to the superannuation industry, including the eight years he has served AvSuper members.

Currently, Lawrie is Chair of the Administration and Member Services Committee and a member of the Investment Committee and the Remuneration and Nominations Committee.

We congratulate Lawrie on this well deserved award. 

Michelle

Michelle Wade
Chief Executive Officer

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October 2018 investment update https://www.avsuper.com.au/october-2018-investment-update/ Mon, 19 Nov 2018 23:49:19 +0000 https://www.avsuper.com.au/?p=11215 Investment update for October 2018

A solid global economic environment weathers some market volatility

Financial markets experienced a large increase in volatility in October.  Like the market correction in February, the market movements appeared to be triggered by an increase in the US 10-year bond yield, expectations of accelerating US wage growth and inflation, and tightening US monetary policy. …]]>
Investment update for October 2018

A solid global economic environment weathers some market volatility

Financial markets experienced a large increase in volatility in October.  Like the market correction in February, the market movements appeared to be triggered by an increase in the US 10-year bond yield, expectations of accelerating US wage growth and inflation, and tightening US monetary policy.  Interest rates are higher in the US than in Australia, which is not the norm historically. 

After falling nearly 10% peak to trough, equity markets started to rebound in the last few days of the month.  The falls were broad based across all markets, with small companies falling further.  Listed property and infrastructure returns were negative in October, but compared well to the broad equity market.

Over the month, the Australian dollar depreciated against the US dollar and Japanese Yen, which provided some downside protection to foreign currency returns. However, there were a number of days during the month that the Australian dollar increased.  The UK pound and the Euro increased in value over the month. 

Amid the global equity sell-off in October, the global economic environment remained solid. The US in particular produced strong economic growth, which flowed through to robust growth in equity earnings, with a large majority of S&P 500 companies exceeding expectations.

President Trump announced sanctions on Iran that contributed to the significant rise in oil prices in 2018.  However, the oil price fell more than 10% in October with increased supply, ahead of the sanctions coming into effect in November.

Italy continues to pose a financial risk to the EU and government sovereign bond yields have risen.  The Italian Government had proposed a large expansion of fiscal spending, but it has been recently asked to revise its spending plans as the initial draft budget was rejected by the European Commission for breaching EU budget rules.  Angela Merkel announced that she will step down as German Chancellor in 2021.  This increases the political risk within the Eurozone
at a crucial time with Brexit and Italy. 

In China, economic growth is at the lowest reported level since the global financial crisis.  In response to slowing growth and trade tensions Chinese authorities appear to be moving to support the domestic economy.  The People’s Bank of China (PBOC) announced during October another reserve ratio cut supporting banks to release additional funding into the economy.

The RBA kept the cash rate in Australia unchanged at 1.5% at its latest monetary policy meeting.   Headline annual inflation has fallen below the RBA target range minimum of 2% for this quarter, while the unemployment rate has dropped to 5%, a 6.5-year low.  The Australian housing market is experiencing a fall in prices led by declines in Sydney and Melbourne, which will make it difficult for the RBA to raise rates in the near term.

Please view our full investment commentary brought to you  by our advisers – Frontier – for a more in depth analysis of market conditions this month. The monthly commentary can also be viewed on YouTube.

Read our monthly market snapshot.

We trust you find this information useful in understanding how your AvSuper investment is being influenced and welcome your feedback on how we can improve the information we provide to you.

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AvSuper launches AvSuper Advice website https://www.avsuper.com.au/avsuper_advice_site_launch/ Tue, 30 Oct 2018 23:31:38 +0000 https://www.avsuper.com.au/?p=11114 We are pleased to announce the launch of AvSuper Advice – a dedicated website about advice for AvSuper members.screenshot of the new AvSuper Advice website

The AvSuper Advice website is there to assist our members learn about financial planning and advice, and provide various resources to enable members to make informed, timely decisions for their financial future.

AvSuper Advice is free for most discussions about your AvSuper account – if any fees apply for more complex advice, we will let you know before providing the advice so YOU are in control.

Whether retirement is coming up fast or it is many years away, have a look at our new site, let us know what you think of it, and consider how our Member Advice Consultants can help you today.

Michelle

Michelle Wade
Chief Executive Officer

 

Personalised fiancial planning and advice - www.avsuperadvice.com.au - 1300 128 751

 

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September 2018 investment update https://www.avsuper.com.au/september-2018-investment-update/ Tue, 23 Oct 2018 06:42:29 +0000 https://www.avsuper.com.au/?p=11142 Investment update for September 2018

Global signs of slowdown amid trade tensions

In September, global business conditions were at their lowest level since November 2016, after an export trade downturn negatively affected production, orders and employment.…]]>
Investment update for September 2018

Global signs of slowdown amid trade tensions

In September, global business conditions were at their lowest level since November 2016, after an export trade downturn negatively affected production, orders and employment. The most notable weakening was in new export orders, which fell for the first time since June 2016. That decline is a marked contrast to the near seven-year high increases seen at the start of the year and coincided with a period of growing global trade tensions, led by the US.

Despite the continued near term risk of those tensions and a slowdown in momentum, growth in the US appeared strong and the economy continued to expand. There were signs of the housing market cooling, with lower US home sales for September than expected. Jobless claims for the month declined more than expected as the US labour market continued to tighten. Capital expenditure expanded with shipment of durable goods expanding 2%.

Within the Eurozone, there were signs of weakening, with growth on a downward trend since its peak in the middle of 2017 and an exports growth slowdown led by China. Financial conditions remained extremely accommodative and supportive for the economy, despite the European Central Bank’s gradually tightening monetary policy. Quantitative easing is slated to end in December. Brexit remained on the minds of Europeans, with the eventual outcome still unclear.

Economic growth held up far better than financial markets in the emerging markets over the past few months. While some countries will continue to do well, growth in aggregate slowed and may continue to decelerate over the coming year. As momentum slowed and trade tensions escalated, worries about China’s economy grew, and officials are boosting policy support. Within equity markets, emerging markets continued to underperform developed markets, with a rising US dollar.

Australian domestic GDP growth was supported by strong demand from consumers and government. Business sentiment remained strong but showed some signs of peaking. The labour market continued to strengthen, and employment and wages grew. ASX300 was down by 4.5% in the month. 10-year bond yields hovered at 2.8%. The RBA kept the cash rate unchanged at 1.5%.

The AUD/USD fell marginally from USD$0.7260 to USD$0.7222.

Please view our full investment commentary brought to you  by our advisers – Frontier – for a more in depth analysis of market conditions this month. The monthly commentary can also be viewed on YouTube.

Read our monthly market snapshot.

We trust you find this information useful in understanding how your AvSuper investment is being influenced and welcome your feedback on how we can improve the information we provide to you.

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August 2018 investment update https://www.avsuper.com.au/august-2018-investment-update/ Mon, 17 Sep 2018 01:09:28 +0000 https://www.avsuper.com.au/?p=10988 Investment update for August 2018

US GDP growth surges and inflationary pressure builds

In August, US GDP growth surged to 4.1% which is the strongest seen in 2018. …]]>
Investment update for August 2018

US GDP growth surges and inflationary pressure builds

In August, US GDP growth surged to 4.1% which is the strongest seen in 2018.  Major contributors to growth were domestic consumption and net exports, while inventories detracted value.  Non-residential fixed investments contributed strong results during the second quarter, and growth at 7.3% was also strong. Inflationary pressure continued to strengthen across various measures in the market. Wage inflation remained relatively moderate in contrast.  The labour market continued to improve as the unemployment rate dropped to a low 3.9%, although only 157,000 jobs were added in August, rather than the expected 190,000.  Business and consumer confidence remained positive.

In the Eurozone, macroeconomic data supported a positive outlook.  The Eurozone composite Purchasing Managers’ Index (PMI) was up in August. Manufacturing production and service sector activity rose at similar and slightly faster rates.  The levels of new work continued to increase during August, with the rate of growth slightly ahead of July, but business confidence regarding future activity continued to weaken. Inflation eased to a three-month low with price pressures acute within Germany. 

In China, purchasing power globally remained above its expansionary level but underlying inputs such as new orders and exports declined marginally into the contractionary range.  This was due to ongoing trade tensions between the US and China. 

In global equity markets, MSCI emerging markets continued to underperform MSCI World as the US dollar rose.  MSC EM (USD) was down 4.9% while MSCI World ex Australia (LC) outperformed by 1.4%. 

In the Australian domestic market, the ASX300 grew 0.63% during the month, while 10-year bond yields hovered around 2.5%.  The RBA again kept the cash rate unchanged at 1.5%.  Housing approvals around the country fell by 5.2% on an annual basis in July.  Business conditions and consumer confidence continued to improve, suggesting a brighter outlook compared to the first half of 2018. 

At the end of August, the AUD was trading at 0.71889 AUD/USD which was the lowest rate in the past year.

Please view our full investment commentary brought to you  by our advisers – Frontier – for a more in depth analysis of market conditions this month.

Read our monthly market snapshot.

We trust you find this information useful in understanding how your AvSuper investment is being influenced and welcome your feedback on how we can improve the information we provide to you.

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George Fishlock to retire after 19 years on the AvSuper Board https://www.avsuper.com.au/george-fishlock-retire-avsuper-board-2/ Tue, 11 Sep 2018 04:42:33 +0000 https://www.avsuper.com.au/?p=10955 George Fishlock has announced his decision to retire from the AvSuper Board and his role as Chairman of the AvSuper Fund at the end of January 2019, following nearly 20 years of service to our members.

George Fishlock, AvSuper Chair

George Fishlock, AvSuper Chair

“It has been an absolute pleasure to have worked with the Board members and staff during my time on the Board, and I must thank both them and the members for that opportunity given to me. It will indeed be a sad day for me to leave the AvSuper family, but in doing so I have every confidence that its future is assured, and that it is operating to the highest standards and efficiency of any Fund in the country,” Mr. Fishlock said.

After 30 years as an air traffic controller, qualified accountant George has been an enormous benefit for AvSuper.  He was the Chairman of the Investment Committee for some years, and has been Chair of the Trustee Board since 2013. 

Michelle Wade, AvSuper’s CEO, said, “George has been a consistent champion of members’ interests during his tenure, as well as a great support and mentor to myself and the management team.  He will be greatly missed by all here at AvSuper and we wish him well for the future!”

Michelle

Michelle Wade
Chief Executive Officer

 

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July 2018 investment update https://www.avsuper.com.au/july-2018-investment-update/ Tue, 21 Aug 2018 05:31:22 +0000 https://www.avsuper.com.au/?p=10923 Investment update for July 2018

Regulations mitigate Australian housing risks as investor demand slows

Amid President Trump’s protectionist stance, Europe and Japan signed a significant free trade deal to eliminate nearly all tariffs, sending a message against protectionism. …]]>
Investment update for July 2018

Regulations mitigate Australian housing risks as investor demand slows

Amid President Trump’s protectionist stance, Europe and Japan signed a significant free trade deal to eliminate nearly all tariffs, sending a message against protectionism.  This trade deal is approximately one-third of the world’s gross domestic product (GDP).  To add on, the US and EU publicly announced that they are in negotiation and working toward zero tariffs.  However, uncertainty remains as a formal agreement has yet to be made.  On the China front, the Trump administration has threatened to impose 10% tariffs on an additional $200 billion worth of Chinese goods. 

In the US, the strongest economic growth in nearly four years (4.1%) was reported for Q2 2018, while annual core inflation edged up slightly to 2.3%, and the unemployment rate fell to 3.9%.

To defend its growth while deleveraging, China announced fiscal policy measures to support its real economy, including:

  • Additional tax cuts for companies that expand on research and development expenditure
  • Local government bonds to support infrastructure investment
  • Financial bonds to support small medium enterprises
  • Improving attractions for foreign businesses to re-invest and accelerate implementation of such projects
  • Guiding financial institutions to ensure funding

In Australia, the outlook for the labour market remains positive as the latest data showed a rebound in jobs added, particularly in full-time jobs.  The RBA suggested that housing credit growth has declined and investor demand has slowed noticeably.  Housing prices in Melbourne and Sydney have also eased.  Tighter bank regulations have helped to mitigate housing risks.  APRA’s mandatory comprehensive credit regime came into effect on 1 July 2018.  This measure gave lenders access to a richer set of data enabling better assessments of borrowers’ credit positions and their abilities to repay loans.

Please view our full investment commentary brought to from our advisors – Frontier – for a more in depth analysis of market conditions this month.

Read our monthly market snapshot.

We trust you find this information useful in understanding how your AvSuper investment is being influenced and welcome your feedback on how we can improve the information we provide to you.

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June 2018 investment update https://www.avsuper.com.au/june-2018-investment-update/ Tue, 17 Jul 2018 22:28:07 +0000 https://www.avsuper.com.au/?p=10691 Investment update for June 2018

Trade tensions continue

Looking back over the financial year, the global economy has improved considerably. Business and consumer confidence are at high levels and unemployment rates globally have steadily declined.…]]>
Investment update for June 2018

Trade tensions continue

Looking back over the financial year, the global economy has improved considerably. Business and consumer confidence are at high levels and unemployment rates globally have steadily declined. As a result, central bank policies are slowly shifting away from years of low interest rates and quantitative easing.

However, as President Trump, North Korea, Iran, Saudi Arabia, Italy and Brexit continue to be in the headlines, geopolitical risks remained heightened.

Trade tensions continue to weigh on equity markets. The Trump administration approved 25% tariffs on $50 billion worth of Chinese goods, with the first tranche of tariffs taking effect on 6 July 2018. China promptly announced a proportional retaliation, imposing 25% tariffs on $50 billion worth of US imports, also to be implemented on 6 July. These escalations in the US/China trade war sparked volatility in late June. 

For the first time since the early 2000s, US cash rates rose above Australian rates. The US federal funds rate was lifted from 1.75% to 2% in June following sustained economic expansion, a strong labour market and inflation moving towards the 2% target rate.  Inflationary pressures appear to be building, particularly with the fiscal boost and low unemployment rate.

During the last financial year, oil advanced over 61% and the Australian dollar depreciated against the US dollar (-3.7%), Euro (-5.7%) and Sterling (-4.7%). The US dollar also showed strength against most currencies.

China’s economy continues to slow as their deleveraging campaign has reduced the available liquidity. To support lending to small enterprises, Chinese policymakers decided to cut the Required Reserve Ratio (RRR) for banks by 0.5%, effective 5 July 2018, essentially injecting more cash into the financial system.

In Europe, the European Central Bank (ECB) made decisions to reduce its quantitative easing purchases and cease its Asset Purchasing Program (APP) by the end of the year. ECB interest rates will likely remain unchanged through the next Australian summer.

Within Australia, the RBA suggested that the board would continue to hold its neutral policy stance, keeping the rate at 1.5%, as inflationary pressures are still modest and wage growth remains subdued.

Please view our full investment commentary brought to from our advisors – Frontier – for a more in depth analysis of market conditions this month.

Read our monthly market snapshot.

We trust you find this information useful in understanding how your AvSuper investment is being influenced and welcome your feedback on how we can improve the information we provide to you.

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May 2018 investment update https://www.avsuper.com.au/may-2018-investment-update/ Wed, 20 Jun 2018 00:52:23 +0000 https://www.avsuper.com.au/?p=10566 Investment update for May 2018

Improved economic conditions around the world

With improved economic conditions around the world, unemployment rates continue to trend downwards globally, and central banks are now dealing with stronger economic growth. …]]>
Investment update for May 2018

Improved economic conditions around the world

With improved economic conditions around the world, unemployment rates continue to trend downwards globally, and central banks are now dealing with stronger economic growth. 

Geopolitical risks remain a concern.  With increasing oil prices, political woes, financial volatility and trade tensions, a misstep by policy makers could potentially derail global growth.

In the US, economic growth was reported at 2% for Q1 2018 and the latest annual core inflation at 2.1%.  The S&P 500 rose 2.2% and the US dollar also strengthened across major currencies.  In addition, the unemployment rate has fallen to 3.8%, the lowest rate since December 2000. Recent US jobs report signalled 223,000 new jobs in May (more than forecast) and payroll gains of more than 1 million for the year.  Given the robust outcome. the US is potentially on track for another rate hike at the next scheduled meeting. The numbers suggest that business conditions and investor sentiments remain strong.

Within Europe, business trends across manufacturing and service sectors have been falling for four consecutive months.  The unemployment rate also fell to 8.5% as compared to 8.6% the month prior.  This suggests a more benign growth environment.  Meanwhile, the ongoing political uncertainty in Italy will likely continue to present economic policy challenges for the EU.  Debt-riddled Italy is the third largest economy within the EU.

Australia’s cash rate remains unchanged at 1.5%.  The RBA recently released a speech addressing Australia’s broadening and deepening economic relationship with China.  China’s situation is of strong interest and will have a material impact on the Australian economy.  China’s pursuit of a more stable and robust financial system, via efforts to deleverage, is already showing progress.  However, it is a significant task that requires caution and the RBA will continue to keep a close watch on China as it evolves.  In addition, the current Banking Royal Commission presents considerable risks for Australian banks.

Please view our full investment commentary brought to from our advisors – Frontier – for a more in depth analysis of market conditions this month.

Read our monthly market snapshot.

We trust you find this information useful in understanding how your AvSuper investment is being influenced and welcome your feedback on how we can improve the information we provide to you.

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