Overseas shares vs. Australian shares 2017

[Aussiesteve]

I switched my super from Australian shares to "Overseas Shares" about a month or two ago but they have only gone down since. Any thoughts why? I heard that international shares were the go for 2017 ( I'm assuming overseas and international shares are the same thing?)
Appreciate any thoughts.

 

[Wysiwyg]

I assume you refer to a super fund. My super fund International Shares unit price has risen in the last 1 and 2 months. First June 17 = 3.0484, First July 17 = 3.0616, First August 17 = 3.1038

First January 2009 = 1.1451.

 

[kid hustlr]

Currency

 

[sommi]

I switched my super from Australian shares to "Overseas Shares" about a month or two ago but they have only gone down since. Any thoughts why? I heard that international shares were the go for 2017 ( I'm assuming overseas and international shares are the same thing?)
Appreciate any thoughts.

The reason you 'lost' money is due to Currency exposure.

Here is a daily chart of the Aussie dollar:



You converted your shares at like 75c, then the Aussie dollar is now at 79c. That's a 5.5% move.

If you had $100,000 you would've lost $5,500

The S&P500 is up a few % as well but who knows how perfect a super funds' hedging really is and what type of slippage they make you pay when you switch.

 

[Wysiwyg]

The reason you 'lost' money is due to Currency exposure.

They quoted Superannuation asset allocation not personal stock holdings.

The portfolio is passively managed by State Street Global Advisors, with currency exposures fully hedged back to Australian dollars.

When an overseas portfolio is fully hedged, the investment manager is using strategies to offset the impact of currency fluctuations.

The objective is to ensure the only factor influencing the return from the portfolio is the income and capital gains (or losses) generated by the underlying investments – not currency movements as well.