The bank superannuation fund beating yours

How does this non-industry fund beat other superannuation funds over the long term?

The small super fund beating yours

One of the smallest superannuation funds in terms of member numbers has been beating all others over the long term, and it isn’t an industry fund. What is its secret?

Financial institution Goldman Sachs & JBWere’s (GSJBW) superannuation fund has only 1867 members with total assets of $471,237,000.

According to SuperRatings chief executive Kirby Rappell, the fund is not open to the public as it is specifically for its employees.

While most of the investments within it are in Goldman Sachs & JBWere’s own managed funds, it does have the MySuper stamp of approval.

“Even though it invests aggressively in high-growth assets that carry more risk, over the long term it pays off for this fund,” Mr Rappell said.

Although many funds returned in the double digits last year, the GSJBW managed only 9.2 per cent. But, as Mr Rappell says, the best way to get a feel for how a fund is performing is to look at its longer view.

Figures from the Australian Prudential Regulatory Authority (APRA) show that GSJBW’s return over five years was a handsome 13.2 per cent, beating all other funds’ performance and almost a clear two percentage points ahead of the next best placed, UniSuper.

UniSuper returned 11.4 per cent over the same period, beating all other industry funds. An Australian titan, it has $63 billion under management and 421,700 members in the higher education and research sector.

However, as clever as our academics are, clearly their pay packets (and thus nest eggs) are a little lighter than their cousins in high finance. The average amount in a GSJBW super fund is $226,000 compared with the average UniSuper balance of $135,000.

Across the 10-year term, GSJBW returned seven per cent. While this may not appear stellar, it was the best performance of all the super funds across that period, according to the APRA figures. Plus it was more than one percentage point better than the next best, which was again UniSuper, with returns of 5.8 per cent over 10 years.

Are you satisfied with your fund? Do you want to know how it has been performing? Email olga@yourlifechoices.com.au to find out.

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    COMMENTS

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    leek
    15th Jun 2018
    10:29am
    Stupid story, doesn't affect the public at all. There would be heaps of funds like this. why tell us, if we can't join.
    arbee
    15th Jun 2018
    11:08am
    Fully agree with you, must be Friday and they have run out of ideas for the week.
    Rosret
    15th Jun 2018
    11:14am
    Not at all, leek. I always want to know how the wealthy make their money.
    Listen and learn is my philosophy of life.
    Trump is wealthy because he played the game. I want to know all about the game and what the rules (as pliable as they maybe) are to win.
    Anonymous
    15th Jun 2018
    11:40am
    Rosret, for goodness sake don't use Trump as a talisman for making money. The guy has had the luck of the Irish - nothing more. He should have been bankrupted in the early to mid 1990's. He is no better, business wise, than a Skase or a Bond!
    VeryCaringBigBear
    15th Jun 2018
    5:02pm
    Trump would have been better off if he had just invested what he inherited in the bank.
    Rosret
    15th Jun 2018
    5:31pm
    I don't at all Big Al. However super managers are just like Trump. They produce nothing. They make money by investing in others who do produce commodities. It is the game.
    Adrianus
    16th Jun 2018
    9:21am
    Trump had a leg up. He got a very, very, small loan from his dad of only $200m.
    Anonymous
    19th Jun 2018
    8:53am
    And he came close to losing the lot more than once. He's no financial genius!

    I get very sick of these BS claims that people born filthy rich are smart or hard working. Anyone can make money if they get a big kick start.
    Turnbull is another one. Inherited a fortune yet claims to have overcome ''disadvantage'' and some fools claim he made his money by hard work or being clever. It's sick! And it's used to support bigoted and offensive claims that it's all about ''choices'', and the disadvantaged are to blame for their problems. But you can only make ''choices'' when there are options available. You can choose which door to go through, but ONLY if there are doors to choose from. ''Disadvantage'' means you DON'T HAVE THE OPPORTUNITY TO CHOOSE.
    Eddy
    15th Jun 2018
    11:59am
    There are probably hundreds of these restricted entry funds. Would it be called a corporate fund, as it is not a retail fund and does not fit the mould of an industry fund. Given the membership of this particular fund, probably they are by culture not as risk adverse as a most funds, it is not surprising they are doing so well. Methinks, how well did they do during the GFC?
    KSS
    15th Jun 2018
    1:43pm
    And the point is?

    GS staff super doing better than yours! So why bother reporting on it when most can't join, can't find out about it and I any case may not be comfortable with the higher risk investments!

    15th Jun 2018
    2:09pm
    How?
    Because it’s a non industry fund that’s how
    Duh !!!
    Adrianus
    15th Jun 2018
    3:02pm
    Gee, I wonder?
    Is the $49,295,000 unapplied forgone benefits? Has this amount accrued as a result of employees not sticking around until full vesting? If that is the case it will prove to be a nice little bonanza for certain members. I wonder who the trustees will bless?
    Adrianus
    16th Jun 2018
    9:25am
    I could be wrong? Maybe the figures are wrong because an academic calculated the member average amount in the GSJBW super fund at $226,000?

    15th Jun 2018
    3:11pm
    Not that great a result a lot of self managed funds would beat that easily.
    Anonymous
    15th Jun 2018
    3:30pm
    Yep but anytime better than industry funds run by fruadster union reps
    floss
    15th Jun 2018
    4:04pm
    Raphael you need help, keep your ears open and your mouth shut.I found the article interesting.
    Anonymous
    15th Jun 2018
    9:24pm
    I found the article interesting too
    Perhaps not for the same reasons as you but interesting nonetheless
    VeryCaringBigBear
    15th Jun 2018
    5:04pm
    I certainly would have been very disappointed if I left my money in super with those sort of returns.
    Anonymous
    15th Jun 2018
    9:05pm
    I run me own and look for at least 10 percent and don't take a pension that's for losers
    Kathleen
    16th Jun 2018
    11:30am
    Robbo, no need to be disparaging of pensioners. Losers or leaners are unkind terms and not necessary. We know which mob use those kinds of labels!
    Adrianus
    19th Jun 2018
    8:32am
    Kathleen, what are you on about? If Robbo draws down in lump sums rather than take a pension that's his choice. If you want to get rid of the word 'losers' from the English language then shouldn't you work toward making everyone a winner? Including Robbo?
    Anonymous
    19th Jun 2018
    9:01am
    Adrianus, that's a typical LNP troll or nasty bigot response. Pensioners are NOT losers, and Kathleen is right to object to such a rude and offensive statement. It has nothing to do with working to make everyone winners. We'd all like to be able to achieve that - but bigoted, discriminatory and cruel practices together with the corruption and self-interest of the power-brokers make it impossible.

    If you want everyone to be winners, you first have to recognize why they currently are not - HONESTLY AND TRUTHFULLY, not pretending (because it's comfortable to pretend) that it must be their fault somehow.

    BTW. By Robbo's criteria, I must be a winner, but I could write volumes about the efforts of unethical and dishonest bureaucrats, governments, unions, bosses (and others with power they should not be trusted with) to make me a loser. So far, I've won, but unlike others here, I recognize why some just don't have a chance. Empathy is a far better indicator of personal quality than wealth, NOBODY who lacks empathy and good manners is a winner.
    Adrianus
    19th Jun 2018
    10:06am
    Wow???!!!
    If ever I take a pension from my Super Fund I will never post it on here. Don't want to give you another opportunity to look like a very nasty angry old woman.