Aussie super funds back on track despite global chaos

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The world may be in chaos right now, but Australian super funds have remained steady, posting modest returns and remaining on track for double-digit returns for the 2018 financial year.

The ongoing trade war between the US and China has sent shockwaves through the market, with super funds struggling through May but coming out delivering modest positive returns.

According to SuperRatings, the median balanced option return was only 0.5 per cent in May, but the financial year-to-date return is sitting at a more positive 8.4 per cent, meaning super funds could post double-digit returns for 2107-18.

“May was a challenging month for super, with global factors playing a significant role,” said SuperRatings CEO Kirby Rappell.

“The ongoing tariff saga between the US and China, along with talks between President (Donald) Trump and North Korean leader Kim Jong-Un seemed to wrongfoot markets in May, and super funds were not immune from the uncertainty.

“But despite May’s disappointing performance, super members should expect a very solid innings from super come 30 June. We need to see an average return of around 1.5 per cent in June for balanced funds to record a double-digit gain for the financial year, which is entirely possible.”

While global investments posted median returns of just 0.4 per cent, members with full exposure to Australian shares enjoyed a return of 1.1 per cent.

The gap between the best and worst funds was clear, with the best-performing balanced options growing to $203,150 over the last decade and the worst growing to just $145,196 – a difference of $57,954.

With the end of the financial year approaching, now is the ideal time to see whether you are ‘super fit’.

According to SuperRatings, the first step is to consolidate your super into a single fund. You can find out if you have more than one super fund by visiting ASIC’s MoneySmart website.

Once you’ve consolidated your super, check whether it stacks up at SuperRatings, or check the tables below.

The top 10 best-performing balanced funds

 

The top 10 best-performing growth funds

How does your super stack up? Have you had to consolidate your super? Was it easy? Do you have any advice for others wishing to do the same?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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44 Comments

Total Comments: 44
  1. 0
    0

    And AS EXPECTED nearly all of the top performers are INDUSTRY FUNDS. Well fancy that.
    Despite the wonderful returns this business owned government is trying its best to get rid of union directors who are keeping the bastards out of the money pot. I wonder why!

    • 0
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      I’m glad I am not in one then as I would be very disappointed with those returns.

    • 0
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      7% is crap and highly questionable
      Looks like members were robbed of a good 10% through fees exorbitant union rep salaries and perks and general incompetence

    • 0
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      Not to mention the exorbitant employer reps salaries and perks and general incompetence. Remember they also sit on Industry Boards.

      Superannuation is a scam. Supposedly saving tax but simply feeding good, hard earned income from PAYG workers into the financial services industry.

      It was never needed. Fraser should have left our Welfare Fund alone.
      Talk about being robbed.

      There is a very good reason employers and business owners don’t have to face compulsory superannuation.

    • 0
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      I’m in a retail fund and it performed a lot better (double figure) than those top 10 Growth funds over 10 years. Those returns are woeful.

    • 0
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      The usual responses.
      A couple of observations:

      1. unless you bought residential real estate 10 years ago please tell me where you can make 10%+ on your money and still have low risk.
      2. mums and dads are for the most part incapable of NOT losing their own money.
      3. management is important as is what management teams pay themselves. If the CEO is ripping out $5 million to $10 million a year that means less for those whose money it is. And then comes the rest of the management team for their bite.
      4. union oversight is IMPORTANT because it controls the ravenous crooked top end of town. THAT IS WHY THIS GOVERNMENT WANTS UNION OVERSIGHT GONE. No other reason!

      Sal: please disclose which fund you are talking about. To my knowledge retail funds generally make low returns so you must be talking about an exception. All ears. Speak up dear girl.

    • 0
      0

      one example Mick is if you buy some banks you can earn 25-30% pa on them using derivative trading.

    • 0
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      Mick,
      MasterKey Superannuation – Gold Star
      By the way I’m Male.

    • 0
      0

      OG – go down to the track and put it on the horse’s nose. You really MUST be kidding!

      Sal – 10.10% return is not bad for a retail fund. Getting closer to the top Industry Funds. You won’t find many, if any, retail funds to get this sort of return.
      I just looked up the top Industry Superannuation Funds and their returns over the past 5 years. First page of 16 funds were all better than yours:

      https://www.ratecity.com.au/superannuation/industry

      Sorry. I stand by what I have been saying: Industry Funds HAVE to beat Retail Funds because CEOs and Boards are restrained from the feeding trough by union representation. Without that these funds would have the same poor returns nearly all retail funds have.

    • 0
      0

      No Mick I am not kidding at all.

    • 0
      0

      Derivative trading for those with sound strategies, time and effort can be lucrative. Better than the track although there is money to be made running the books even down there.

      It’s being able to cop the losses for the bigger gain that most people can’t stomach.

      I admire those with the guts and stamina to ride the trades out.

      Good on you OG.

      I know an 86 year old that is big into trading and does exceptionally well who has the temperament for it. A lot of traders are retirees.

  2. 0
    0

    Confirms that putting savings for the future into “managed funds” is a lottery.
    Not only are the products that those funds invest in subject to high risk and fluctuations, the very funds themselves represent risk, where the wrong choice of fund could have very significant impact on what return you get for YOUR money, your precious retirement money.
    Superannuation investments should, by definition, have minimal risk and as such, should be deposited into a government guaranteed and managed fund, such as the Future Fund, with minimal charges.
    The present system even makes the timing of your retirement a high risk and has the major beneficiaries of those hard earned superannuation dollars going to fund managers, financial advisers and real estate agents. It really is an illogical farce.

    • 0
      0

      That’s why people should avoid the Retail Funds where large sums of money go into the pockets of CEOs and their Boards. Whilst our coalition trolls plug their Retails Funds they do not tell you that the returns are much lower because the management suck the lifeblood out of them.
      We all need to ask WHY this government is trying to push all union oversight out of this industry. The answer is clear: the top end of town cannot get at your money.
      If I still had super I k now where I’d be investing it.

    • 0
      0

      Just image how much extra you would have got if you invested the money yourself and didn’t pay those big fees and expenses.

      I know where my super is and know it’s value instantly.

    • 0
      0

      You mean like The Welfare Fund that Fraser and the LNP stole.

      All they had to do was up that 7.5% by 1.5% and we could have had a fund equivalent to superannuation without all the costs and fees.

      Then we could have had higher take home incomes to make life just a bit easier.

      No they wanted a whole new Industry and 9% of our hard earned to play with.

    • 0
      0

      Indeed Rae. OG is gilding his coalition lily again as he knows full well that most mums and dads never make money out of investing on their own.

    • 0
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      Most of them won’t make much out of investing in Superannuation either MICK. It’s a rich man’s plaything. You can see it in the returns during this latest boom and the corrections haven’t yet begun.

      It all looks fantastic during a boom and the currency wars that went on but I doubt those returns can be held over the longer term in a vehicle that follows a formula and doesn’t take profits in any timely fashion.

    • 0
      0

      Rae – a fund compounding at 12% or more will make money. The whole point is compounding works over 40 years, not 4 years. It’s a waiting game…which is why it is so important to keep high income earners away from retirees money. Getting 8% rather than 15% means a HUGE difference after 40 years.

    • 0
      0

      I understand compounding MICK and yes it works over time. Except when it hasn’t for very lengthy periods of time.

      I have two Industry Funds and a Fund I run outside of the Superannuation umbrella. My outside investments I run made 300% more than the Superannuation fund over the same time period and that was including taxes.

      The only reason I invested outside was because of the freedom from rules and I’m surely glad I did. The Super is good too and excellent returns have been made lately during this boom.

      All my kids also have Super Funds and outside investments and just pay the taxes if they are lucky and go Kerching!!!

      I’m with you on the whole thing about keeping the banksters away from worker’s super pot.

    • 0
      0

      I don’t trust those industry funds either. Something is not right with those getting a pension from their fund getting nearly the same return as those in the accumulation phase. Where are their franking credits?

    • 0
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      OG That is a very good question for Australian Funds. The ASX performs based on dividends and franking credits as opposed to say the DOW where companies increase wealth through capital gains.

      The credits should be paid to the retirees in pension mode. I assume the credits just go back into the fund and boost the performance figures.

  3. 0
    0

    My retail fund provided a cracking 18% .

  4. 0
    0

    Not in my industry stay out of my super

  5. 0
    0

    Hi Raphael,

    Amazing return from your fund. Strange it gets no mention anywhere on this planet.

  6. 0
    0

    And yet another inconsistency costing many pensioners very dearly.
    From 1 July 2018 pensioner couples can sell their home and deposit $300,000 EACH, a total of $600,000 into their super fund, each being treated individually. Yet, for the Age Pension, a married couple are NOT treated as individuals and are a combined $6,000 per annum worse off than two individual pensioners!!!

  7. 0
    0

    RAPHAEL please give us the name of the fund or is it just one of your many fibs.

    • 0
      0

      It’s not a fib
      I don’t want to be advertising any fund
      It’s against my principles and also against this websites policy

    • 0
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      I spoke to the local member’s office about this recently and stressed how harmful and patently unfair Labor’s policy is and they replied that Labor leaders have had a great deal of feedback and realize there are problems and the policy needs amendment. I’ll wait and see!

    • 0
      0

      Don’t hold your breath
      Labor are liars through and through
      Not one ounce of decency

    • 0
      0

      And Libs don’t lie? ”No changes to pensions”? Sad that there wasn’t more highlighting of their irresponsible and economically unsustainable changes that make it a waste of effort saving and encourage folk to plan to be pensioners, because they can be so much better off as pensioners than self-funded.

      Frankly, I’d rather trust Labor if I had to choose – though I dislike both mobs intensely and I don’t trust either. I think the two-party system has destroyed Australia and nothing will improve until BOTH parties are eradicated.

    • 0
      0

      I have sent an email to my local Labor MP and told them that I can no longer vote for them on this issue alone. Also said if you want my vote Labor will have to scrap this unfair policy. I gave an example of a couple with an income of $40,000 which includes $10,000 in franking credits and ask them where would this couple get the extra $10,000 they needed to live on? I then said if they have to use their capital them their income is further eroded and they will be on the OAP well before they depart this mortal world.

    • 0
      0

      I agree, and I’ve told Labor MPs the same thing OG, but what puzzles me is that you condone the LNP taking up to $14,000 a year from people with only moderate assets and low incomes, and forcing THEM onto the OAP sooner by making them erode their capital. You are not making sense. Neither act was either fair or economically sensible. Both will do major long term harm to the economy and to society.

    • 0
      0

      OGR that change in the asset test was a fair thing but this non refund of franking credits is unfair as it taxes low income earners at a rate much higher just because of where their money is invested. The difference is those affected by the asset test did not the OAP but most of those effected by the franking credit policy rely on the extra income those franking credits give them. I agree some have been given a double whammy as well.

  8. 0
    0

    These funds should be doing a whole lot better. In the last 2 years we have seen huge gains in the ASX. The prices of RIO, BHP and CSR have doubled!


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