POWERED BY MOMENTUM MEDIA
Balance the key to super fund performance
Australia’s largest industry superannuation fund, Australian Super has emerged at the top of the table in Super Review’s latest rebalance of FE-Fundinfo’s Crown Ratings which has confirmed that the value of superannuation funds having an eye to both growth and capital preservation.
With the Australian Prudential Regulation Authority (APRA) moving to implement so-called “heat maps” to demonstrate where superannuation funds are or aren’t performing, the FE-Fundinfo analysis confirmed that it’s all about balance and risk-adjusted returns.
What is more, the data once again made clear that scale is not everything, with funds such as NGS Super and Statewide Super making the top 10 list.
The top 10 superannuation funds in terms of consistency were:
- Australian Super
- Statewide Super
- Sunsuper
- QSuper
- NGS Super
- Care Super
- Telstra Super
- VicSuper
- FirstState Super
- Mercer Superannuation
The best-performing funds under the Crown Ratings system are those that prioritise consistency.
The ratings are based on alpha, volatility, and consistency and strength of performance, measured across the three years prior to each rebalancing which occurs twice a year.
The ratings identify funds that have displayed superior performance in terms of stock-picking, consistency of outperformance against a credible benchmark, and achievement of results at a relatively low risk.
According to FE-fundinfo, “certain types of performance are more valuable than others”. As such, the drivers behind performance recognised by a Crown Rating are those that it determines as intrinsically more valuable to superannuation fund members in nature, because of their solidity.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
