Industry funds lead way in 2018

18 January 2019

Superannuation funds managed to eke out a positive return for calendar year 2018, according to the latest analysis released by superannuation funds research and ratings house, Chant West.


The analysis said the average 0.8 per cent return may have been the lowest since 2011 but had served to extend the run of positive years to seven.

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Chant West said QSuper had taken top spot in terms of returns, recording 2.8 per cent but that while the median growth fund return was in the black there were several in the category which had delivered negative returns, with the worst performer losing 2.5 per cent.

Commenting on the analysis, Chant West senior investment manager, Mano Mohankumar said the 2018 result was not surprising given the stellar run experience by funds since 2009 with the median growth fund averaging close to nine per cent.

He said the better performing funds in 2018 were those that had relatively higher allocations to unlisted assets such as infrastructure, property and private equity and to bonds at the expense of shares.

Mohankumar said having a higher proportion of your international shares unhedged would have also helped because the depreciation of the Australian dollar turned the unhedged loss of 7.5 per cent for that sector into a 1.5 per cent gain in unhedged terms.

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Of course not revaluing those unlisted assets would have helped the returns?? Chant West needs to start acting professionally and exclude any funds from the survey that do not provide daily unit pricing and revalue their assets at least monthly. This sort of headline is misleading and deceptive

Unlisted assets are investment opportunities and plenty of people use these in and outside superannuation. There is no reason for them not to be included. Getting fees makes them less attractive to retail funds but this is not a reason to say they should be dropped from considerable. After all it is the end result that could - ends justify the means.

I have no problem with unlisted assets, but when 30.1% of your fund in Real Estate, Infrastructure and Alternative assets and you have not revalued them for six months- even though the property market has lost 6-10% - then any comparison is misleading. If you look at QSupers performance in International shares -7.1% (Index +1.42%) and Australian Shares -2.7% (Index -3.06%) that gives a better view of how they are actually performing against their peers.

Hedware, some of the things you say just make my day. Your comment "Getting fees makes them less attractive to retail funds" makes no sense at all and I just wonder what your thought process is - if you actually have one at all. What are you saying? Is it that Industry Funds do not charge any fees/commissions etc on unlisted assets? Is that it? Please answer - I need a laugh.

Hedware you are a real cockhead, You should change your name to head in the sand. If you really are a planner would love to know who you recommend

Hedware, the day is moving on and I need a laugh. A comment containing your knowledge of investment portfolios in relation to your comments would be appreciated - if you can stay on topic..

Need help do you? Need advice? That will be costly. No freebies for you.

Hedware, I actually feel sorry for you - out of your depth.

Not again! Come on retail funds - lift your game - justify your high fees - you get paid enough.

Comrade Hedware, where do I sign up to be a paid troll for the ISA like you? I too want to user in the socialist utopia. We need to turn Australia into Venezuela or North Korea or even better China. I note that Garry Weaven said on the 7.30 Report that Australia needs to be run as a command economy like China. His vision to establish Industry Super Funds in the 1980’s as a way to further socialism in Australia was profound. We will achieve the socialist objective once the unions through the mask of Industry Super Funds gain total control of Australia's superannuation savings. Then we will be in control of the nation’s means of production and its distribution and thus have the POWER to bring forth the socialist utopia. I am certain that Australia will be a much better place when everyone is equal (well except for us socialist elite we deserve more because we know what is best for everyone) and profit-making is abolished.

Comrade Tony, to become a paid ISA troll you will need to do the following. First complete a university degree in journalism, with a strong focus on social media techniques. Then do some unpaid internships at mainstream media companies. Then request paid jobs at those companies. Your request will of course be rejected because no-one employs journalists as journalists anymore. Then when you are totally dispirited and dejected and desperate for a permanent job, come and work for the ISA! The pay will be lousy, and you will have to leave your principles and integrity at the door. But at least you can lie to your mother and say you have secured your dream job in "journalism". BTW, union fees will be compulsorily deducted from your pay.

Thanks for the advice Comrade Garry. I think I will change my undergraduate degree from Social Research and Policy to Journalism. My Marxist/Postmodernist Professor of Political Science advised me to aim for a career as a bureaucrat working for a government regulator where I would have the power to use my social justice warrior beliefs without consequence to crush the unethical profit seeking business people in the financial services sector. He said, to user in the socialist utopia we must first infiltrate and capture the government regulators. However, I think this part of the revolution has already been accomplished. Therefore, I would prefer to be involved with my comrades who will be in the position of total control and power once Comrade Shorten is elected. So, I will change to Journalism so that I can be a troll for the ISA. Lousy pay and having no principles are no concern to me so long as my burning resentment against those who believe in capitalism is fulfilled. Actually, my University and my Professor received a grant from ISA a few years ago to produce an unbiased report that showed how retail superannuation was a failed market and that Industry Super Funds should be the only superannuation provided allowed.

This article is BS frankly, If you were selling your house in Sydney or Melbourne and were asking for a price based on last years valuation - do you think it would sell for that much? Ofcourse not - so how can you say that these funds performed well based on previous valuations?

Comparative data/information during a nominated period.

Hedware works for a super “Consumers” advocacy group.

OK from ATO website "It is illegal for a super fund to give you benefits – for example, a free holiday, as an incentive to use their fund as your nominated fund." YET we have this from Australian Super "Earn 20,000 bonus Qantas Points with AustralianSuper"

Like fund managers who offer inducements to employers to make their fund the default super fund.

Hedware - I might agree with you, provided you include the Tennis.

Any more tips?

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