A super fund investing in index funds has beaten the best-performing super funds with returns of 10 per cent per annum.
The Stockspot (Topaz portfolio) returned 10.9 per cent over the year to 30 June, 2019.
According to research by Chant West, the next best-performing super was QSuper Balanced and UniSuper Balanced which both returned 9.9 per cent over the same period.
In third place was Media Super Balanced which returned 8.8 per cent, Australian Super Balanced which returned 8.7 per cent and, in fifth place with returns of 8.6 per cent, was Tasplan Balanced.
Overall, Stockspot said, its five portfolios beat the typical super fund by 3.9- 4.5 per cent in 2019 after fees and tax with the biggest difference seen in the Conservative Super sector.
Chris Brycki, Stockspot founder and chief executive, said the difference came from the firm’s use of index funds which meant the portfolios took less risk and charged lower fees.
“These results show that staying the course in a diversified portfolio of low-cost index funds is the best course of action for your super, even in volatile years like 2019.
“Stockspot has invested in automation and technology which keeps investing costs as low as possible so more returns are kept by our clients, rather than the super fund industry.”
The funds were not included in the Chant West research as they are only available to clients of self-managed super funds.
Comments
Stockspot's before-tax returns exceeded the after-tax returns of superannuation funds? What a huge surprise.
I wish media outlets would realise that Stockspot's core competency is making inaccurate comparisons that paint them in a good light, or alternative options in a bad light.
They provide a reasonably priced service in helping somebody to pick the right asset allocation for a diversified passive portfolio, but their marketing strategy is regularly misleading.
Hi 'Critical Eye', as reported the comparison was for net returns after investment fees and accumulation super taxes in all cases. Full details are here: https://blog.stockspot.com.au/fat-cat-funds-report-2019/?cat=156
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