Join our investing community

Earnings in superfunds - how worked out?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by GG, 2nd Mar, 2010.

  1. GG

    GG Active Member

    Joined:
    21st Oct, 2009
    Posts:
    35
    Location:
    Sydney, NSW
    An example - Agest, graph for Australian shares shows 46% increase in past year (from 2 Mar) (assuming pension account) agest

    ASX 200 has gone up about 47% in same period by my calcs.


    Does anybody know how the super funds figures would be calculated? In particular, how do they know on a particular day how much benefit there is from reinvested dividends?

    Shouldn't a low cost fund increase more than the overall market due to reinvested dividends?
    Or do you think the 'low' fees cancel out reinvested dividends?

    Many thanks
    GG
     
  2. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Don't get too caught up in the low fees marketing - a lot of it is all smoke and mirrors!

    The super funds simply values it based on the market valuations of the underlying assets (shares etc) that support the account.

    SM
     
  3. GG

    GG Active Member

    Joined:
    21st Oct, 2009
    Posts:
    35
    Location:
    Sydney, NSW
    And if 100% in shares, for example, does this take into account the payment of dividends? If so how?

    agest fees for default fund from pds and various super comparison sites apparently would be $363 if 50K invested.
    Am I missing something. Any hints as to the 'smoke and mirrors' anyone?
    Many thanks