According to data provided by SuperRatings, the average superannuation fund produced a return of approximately 7.5% in 2014.
That's not bad when you consider the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) only squeezed out a gain of about 1.6% before dividends however it's certainly a far cry from the 16.3% average return that super funds achieved in 2013.
According to SuperRatings, a major contributor to the 7.5% returns was fund exposure to global shares. This highlights the benefit of diversification given global shares significantly outperformed the local bourse in 2014.
Exposure to faster growing foreign markets and the US dollar are important themes at the moment. Both themes look to offer investors a tailwind for the foreseeable future.
If you're looking to boost your portfolio's return in 2015 consider increasing your holding of ASX companies that have overseas operations in regions experiencing more buoyant economic activity. Likewise the trend of a lower US dollar versus the Australian dollar looks set to continue so this theme is also appealing.
Here are four stocks that could be worth taking a closer look at…
- Boral Limited (ASX: BLD) – exposure to the US housing market should be a positive driver for investors in this building materials company. Boral's US division earns US dollars which will become more valuable should the exchange rate into Australian dollars continue to weaken.
- Brambles Limited (ASX: BXB) – while its European operations may continue to lag this year, Brambles' pooling operations in both Asia and the Americas should provide higher levels of growth and also good US dollar currency exposure.
- Cochlear Limited (ASX: COH) – with the release of newer models of its cochlear implant into higher growth overseas markets, the medical device maker could provide shareholders with exposure to solid growth.
- CSL Limited (ASX: CSL) – this leading pharma company has major operations in the USA which will benefit from the improving economic outlook in the US, which in turn should mean higher US dollar earnings for the group.
For a large, long-term superannuation fund, a return of 7.5% isn't bad. It's just that as a worker who is saving for retirement, it might not be enough to allow you to retire comfortably – let alone retire rich! That's why more and more Australians are taking control of their finances and taking matters into their own hands.
