POWERED BY MOMENTUM MEDIA
Australians switching up their super
Around 8% of Australians invest in additional superannuation contributions and were more interested in ethical investing, according to a report from Finder.
Its ‘Investing in 2021’ report said the stock market crash instigated a “flurry of panic” for super holders who worried they would lose their life savings.
“In April, Finder revealed 12% of Australians were considering changing their super fund in light of market volatility,” the report said.
“However, the market has largely recovered its losses and most diversified funds are no worse off than they were a year ago.
“In fact, now is the perfect time for Australians to increase their superannuation contributions as economic recovery will support fund growth.”
The report also found Australians had developed a growing interest in ethical investing and 29% would consider switching super funds if their provider was investing in industries they deemed unethical, and for Gen Z specifically this grew to 45%.
“Younger Australians in particular are becoming increasingly concerned with the state of the planet and are willing to boycott investing in industries that are misaligned with their values,” the report said.
“But it’s not just about the ethics. A report from the Responsible Investment Association Australasia found 62% of Australians believe ethical super funds perform better in the long term, a stark increase from 29% in 2017.
“And they aren’t necessarily wrong: Australian Ethical, for instance, has achieved a five-year annualised growth rate of 6.88% on its balanced fund, well outperforming the industry average of 5.9%.”
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
