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Did ‘cautious’ super funds do their job during COVID-19?
Since the beginning of 2020, COVID-19 has affected markets daily and mixed asset ‘cautious’ superannuation funds have managed to do their job as they have lost the least compared to their ‘balanced’, ‘growth’, and ‘aggressive’ counterparts.
According to FE Analytics, since the start of the year to 31 May, 2020, cautious super funds have lost 1.8%. Balanced funds lost 4.1%, growth funds lost 6.65%, and aggressive funds lost 7.7%.
Super fund sector performance since start of 2020 to 31 May 2020
Source: FE Analytics
All of the top five performing cautious super funds made a return since the start of the year and three of the top five were Suncorp funds.
Suncorp Brighter Super Business Multi-Manager Conservative fund was the top performing fund at 0.52%, followed by AXA Superguard Plus Guaranteed Portfolio at 0.42%, Commonwealth Personal SuperCare at 0.27%, Suncorp Brighter Super Business Morningstar Conservative and Suncorp Brighter Super Personal Morningstar Conservative both at 0.11%.
Top-performing cautious super funds versus sector since start of 2020 to 31 May 2020
Source: FE Analytics
On the flip side, the worst-performing fund AMP Signature MySuper Capital Stable lost 4.24%, losing less than the average growth and aggressive funds.
Over the five years to 31 May, 2020, the best-performing cautious super fund was Statewide Conservative Option at 25.1%.
This was followed by VicSuper FutureSaver Capital Secure at 20.9%, OnePath OA Frontier PS-BT Monthly Income Plus at 17.2%, Aon Moderate Active at 16.99%, and AMP Signature AFLPA and AFL MySuper Capital Stable at 16.8%.
The average cautious super fund over the same period returned 11.95%.
Top-performing cautious super funds versus sector over the five years to 31 May 2020
Source: FE Analytics
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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(%)
