Default super funds outperformed self-managed superannuation funds (SMSFs) in the year to last quarter’s end by two per cent before fees and tax, according to SuperGuard 360.
The SG360 SMSF Reference index showed returns of 5.4 per cent for the year to March 2018, as compared to 7.4 per cent for the SG360 Default Index, which represented MySuper products.
SuperGuard 360 put this down to SMSFs generally having lower asset class weightings to growth assets, especially international equities. The 12-month returns of international equities to last quarter’s end was around 10 per cent higher than that of their Australian counterparts.
The organisation said that three quarters of all SMSFs have assets under $1 million, and these funds have higher weightings to cash and lower weightings to equities than larger, higher-performing SMSFs.
It said that this meant that “the majority of SMSF members are in funds likely to achieve lower than ideal investment outcomes”.
The corporate fund has announced it is seeking a suitable merger partner as the number of corporate super funds in Australia continues to dwindle.
Australia’s second-largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
Add new comment