Industry funds dominate 10-year returns

20 January 2020

Industry superannuation funds have dominated in terms of returns to their members over the past 10 years, according to the latest data released by Chant West.

The data, which confirmed that 2019 had been a standout year for superannuation fund returns with the medium growth fund up 14.7%, also confirmed that on a 10-year basis the top 10 funds were all industry funds led by Hostplus Balanced, Australian Super Balanced, UniSuper Balanced and Cbus Growth.

However, performance across a one-year time-frame saw a number of retail superannuation funds in the Top 10 mix, including CFS FirstChoice Growth, BT Multi-Manager Balanced, AON smartMonday Balanced Growth and IOOF MultiMix Balanced Growth.

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Just how well growth-oriented superannuation funds performed in 2019 was evidenced by Chant West senior investment manager, Mano Mohankumar who said that even the worst performer in the growth category returned a healthy 10.5% which was 9% above the rate of inflation.

“Very few would have predicted such a strong result 12 months ago when growth funds had just lost 4.6% over the December 2018 quarter and investor sentiment was decidedly negative. The 14.7% return represents the eighth straight positive year, and the 10th out of the past eleven,” he said.

“The 2019 result brings the average return over the past 10 years to 7.9% per annum.”

Mohankumar said shares remained the main contributors to growth fund performance with about a 53% allocation on average.

 




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This is very unlikely to be factual.
The thing with returns is they are capable of being manipulated, like statistics.
You know the lies, damned lies, statistics, thing.
It is nonsensical that ALL retail funds would be outperformed when some have lower charges than some of the industry funds in the top 10 - something else is likely afoot.
The sooner there is uniformity in practices across all entities, the better off the consumer will be.

This is very unlikely to be factual.
The thing with returns is they are capable of being manipulated, like statistics.
You know the lies, damned lies, statistics, thing.
It is nonsensical that ALL retail funds would be outperformed when some have lower charges than some of the industry funds in the top 10 - something else is likely afoot.
The sooner there is uniformity in practices across all entities, the better off the consumer will be.

According to the MorningStar website, and fund reporting the MyNorth index growth investment returned 21.23% over 12 months to 31st Dec 2019. Why would this fund not be inclusive of the top performing funds over the past 12 months?

Chant West and Super Ratings make money by licensing their "research results" to union funds to use in advertising and PR.

surely published returns can be easily checked. IF Chant West and Super ratings aren't checking all the funds ASIC should investigate why they are misleading the public. Surely this should be easy to check and ASIC could gloat at how wonderful it is.

Quite so. Unfortunately ASIC's primary focus is persecuting licensed advisers, not protecting consumers. They turn a blind eye to a huge range of deceptive, inappropriate, financial advice providers including:
- accountants
- real estate agents
- book authors
- union super "client service" staff
- "roboadvisers"
- "research" websites

All my clients who commenced work for the first time over the past 3 years have zero interest in the 10 year returns of Union Super Funds. Their super choice platforms have seriously outperformed all the Union Super Funds over that time - this year earning up to 39%, thrashing UniSuper & HostPlus etc

I think selling yourself based on investment performance is unlikely to be a stable business proposition.

There is a reason union funds are pushing 10 year performance figures so strongly now. It was about 8-9 years ago that the major retail super funds released nil commission versions of their funds. Most of those funds perform just as well if not better than union funds with a similar asset allocation. Most of them have lower fees and better service too. And none of the retirement savings in those funds is used to support union activities. In a few more years union funds may have to face up to a genuine apples to apples comparison with their competitors for the first time. For now they are desperately trying to squeeze the juice out of their deception lemon.

They deal with me, because there is no one else left to talk to. They have all retired because of FASEA. The extra return they have achieved is simply a bonus.

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