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ANZ points to super in record result announcement
ANZ has claimed its Smart Choice Super product now leads the industry in value for money and innovation, with funds under management (FUM) now exceeding $4.3 billion.
The big banking group used its results announcement to the Australian Securities Exchange (ASX) to highlight the success of its super product.
The reference came as the bank announced a record statutory profit after tax of $7.5 billion with its Global Wealth Division increasing profit by 11 per cent.
It said the 11 per cent profit increase had been driven by positive performance across all business units, with insurance delivering growth in in-force premiums along with stable claims and lapse experience.
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The rollout of further tariffs in the US from August is expected to decrease economic growth in the US in the longer term, AMP and asset managers warn.
The Australian Retirement Trust is adopting a “healthy level of conservatism” towards the US as the end of the 90-day tariff pause approaches, with “anything possible”.
Uncertainty around tariffs and subdued growth may lead to some short-term constraints in relation to the private credit market, the fund manager has said.
Just three active asset managers are expected to attract net inflows over the coming year, according to Morningstar, with those specialising in fixed income or private markets best positioned to benefit.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
Well, if 'value for money' is predominently fees, this is a low-cost product. But if value is rather measured as what the customer actually gets in their super account, then I'd question this product's value proposition. While it's track record isn't sufficient to make any meaningful long term comparision, according to their own website this product underperformed many alternative funds, both bank owned and industry funds, but over 250 basis points last year. cheap, passive, investing, which is what you largely get for 50 bips might look OK on a website or in a bank branch chat, but is their a too large opportunity cost to pay in the long run - time will no doubt tell.
Well, I guess the fact that Canstar gives them 5-star 'value' awards in every super category for the last few years means they're probably doing something right. Love how people also that should know better about relying on short term fund performance, judge a product on its short term fund performance.