POWERED BY MOMENTUM MEDIA
Top sustainable super funds faring better than balanced peers
Most of the best-performing sustainable/responsible superannuation funds have managed to weather the COVID-19 storm better than their balanced peers with the top fund only losing 0.02% compared to a loss of 2.43% for top balanced fund during Q1 2020, according to data.
FE Analytics data found the top sustainable/responsible super fund was Australian Ethical Defensive fund that had 100% of its allocation towards interest bearing investments.
This included NSW Treasury corporate bonds (8.98%), Australian government loans (8.28%), Western Australia treasury corporate (6.93%), Government of Australia (3.69%), and Treasury corporate of Victoria bonds (2.29%).
While it had been able to navigate the COVID-19 volatility well, its long-term returns were also conservative, placing in the third and fourth quartiles over three (3.46%), five (5.73%), and 10-years (22.74%).
Following the Australian Ethical fund, CFS Stewart Investors Wholesale Worldwide Sustainability fund followed lost 0.39%, Australian Ethical Conservative at a loss of 0.66%, VicSuper FutureSaver Socially Conscious lost 3.99%, and Suncorp Brighter Super Per Walter Scott Global Equity lost 5.2%.
The Australian Ethical Conservative fund had its largest allocation to Investa Property Group at 3.09%, followed by various Australian Government loans. Over 57% of the fund was invested in global fixed interest and 16.95% in the money market.
All the top funds had returns in the top quartile for both long and short-term time horizons except the Australian Ethical Defensive fund and the Australian Ethical Conservative fund over three and five years that placed in the second quartile at 14.2% and 18.2% respectively.
Best-performing sustainable/responsible super funds over three months to 31 March 2020
Source: FE Analytics
However, FE Analytics data found that the worst sustainable/responsible performers fared a lot worse than their multi-asset balanced peers with the worst fund, Australian Ethical Smaller Companies, losing 21.73% compared to a loss of 13.82% for ANZ Smart Choice Super Legg Mason Diversified.
Despite this, the fund placed in the top quartile for five and 10 year returns at 25.95% and 107.1% respectively. It was also given a 5 Crown Rating by FE fundinfo after displaying superior performance in terms of stockpicking, consistency and risk control.
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
