Industry funds tout infrastructure as differentiator
The Industry Super Network (ISN) has claimed exposure to infrastructure and unlisted assets has been a vital performance differentiator between industry and retail superannuation funds.
Amid continuing discussion about the role of super fund investment in infrastructure, ISN chief economist Dr Sacha Vidler (pictured) said the outperformance and reduced volatility of unlisted assets has been an important source of competitive difference for industry funds.
He added it was a vital factor in their impressive investment performance.
ISN used figures from Chant West on growth funds from 2009 to indicate that retail funds only allocated 9 per cent of their portfolio to unlisted assets while industry funds allocated 28 per cent.
“This different approach to asset allocation has proved to be a vital performance differentiator for industry super funds as unlisted assets have both outperformed most other asset classes and also been less volatile,” Vidler said.
Vidler said that during the global financial crisis, unlisted property and unlisted infrastructure experienced a shorter and shallower downturn than the precipitous crash that occurred in listed markets.
However, one industry fund, MTAA Super, had a high exposure to unlisted assets and has recently been the subject of scrutiny over investment performance.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
