POWERED BY MOMENTUM MEDIA
Which balanced funds have suffered the most since COVID-19?
The worst-performing balanced superannuation funds lost between 12.5% and 13.8% during Q1 as COVID-19 rocked markets, according to data.
FE Analytics data found the fund that suffered the most since the start of the COVID-19 pandemic was ANZ Smart Choice Super Legg Mason Diversified at a loss of 13.8%. This was compared to the balanced super sector average loss of 8.5%.
The fund had its largest allocation towards Australian equities (31.9%), followed by US equities (13.2%), money market (11.9%), Australian fixed interest (7.3%), and Australian corporate fixed interest (7.07%).
The ANZ fund was followed by Zurich Superannuation Bond Managed at a loss of 12.58%, Zurich NZI Superannuation Bond Australian (Managed) at a loss of 12.57%, OnePath Integra Super Schroders Balanced at a loss of 12.55%, and ANZ Smart Choice Super OptiMix Balanced at a loss of 12.51%.
OnePath Integra Super Schroders’ factsheet at the end of January said it had added Chinese equities at the beginning of January due to improving fundamentals and removal of geopolitical risk but it had also reduced its Yen position in favour of the US dollar.
“However, as news of the coronavirus unfolded, we’ve added 0.25 years of duration as protection, bringing overall portfolio duration to two years, as well as reducing our allocation to high yield credit by 1% given the tight spreads across credit markets,” it said.
“At the time of writing, developed equity markets are already back within a hair’s breadth of their all-time highs and credit spreads have resumed their tightening. We will use this as an opportunity to reduce risk while we wait and see how the shutdown of the world’s second-largest economy affects global growth.
“While we believe the impact will likely be transitory, we look for a better entry point to re-risk, which will likely occur when the first impact of the virus shows up in the economic data. Ultimately the stimulus from China should be supportive, but we prefer to stay defensive for now.”
Worst-performing balanced super funds v sector during Q1 2020
Source: FE Analytics
Over the three and five years to 31 March, 2020, the sector average was still better than all the five funds that had the history.
The fund that performed the best of three, five, and 10 years was Zurich Superannuation Bond Managed. It only beat the sector average over 10 years at 64.2%, compared to 57.8%.
Returns over three, five, and 10 years to 31 March 2020
|
|
Three years to 31 March 2020 |
Five years to 31 March 2020 |
10 years to 31 March 2020 |
|
Mixed asset balanced superannuation sector |
7.4% |
13.18% |
57.81% |
|
Zurich Superannuation Bond Managed |
5.89% |
11.78% |
64.21% |
|
Zurich NZI Superannuation Bond Australian (Managed) |
5.44% |
11.14% |
62.59% |
|
ANZ Smart Choice Super OptiMix Balanced |
4.42% |
N/A |
N/A |
|
OnePath Integra Super Schroders Balanced |
1.24% |
8.38% |
55.26% |
|
ANZ Smart Choice Super Legg Mason Diversified |
1.22% |
N/A |
N/A |
Source: FE Analytics
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
