How best to assess super funds

Greg is closely following the performance of his super fund now that he is retired and asks personal finance expert Noel Whittaker for help on how to assess funds.


Q. Greg
I always enjoy your articles. My wife and I retired last year (aged 63) and we live off our $830,000 through the super fund BUSSQ. Their returns are always in the top 20 funds, but I also note that the Hostplus indexed fund wins the gong every year with returns of 12 per cent plus and low fees. I wonder: would I lose too much money swapping over to them? It’s really hard to obtain reliable information on funds as there are so many variables in the data.

A. As you point out, there are many variables when you try to compare one fund with another. Usually, the main factor that influences returns is asset allocation – some investors choose a more conservative asset allocation than others, and some funds invest a greater proportion of their assets in unlisted assets such as infrastructure.

I think the important thing is to sit down with your adviser and choose an asset allocation that suits your goals and your risk profile. That way, you can more accurately assess other funds and ensure that your returns match your particular goals.

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Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature, and readers should seek their own professional advice before making any financial decisions.

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Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

Noel Whittaker
Noel Whittaker
International bestselling author, finance and investment expert, radio broadcaster, newspaper columnist and public speaker, Noel Whittaker is one of the world’s foremost authorities on personal finance. He is currently an Adjunct Professor and Executive-in-Residence with the Queensland University of Technology, as well as a committee member advising the Australian Securities and Investment Commission.
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