Best Capital Stable Super Funds

A big holding of defensive assets reduces the risk of negative returns

Catholic Super’s Moder

ately Conservative fund, with a low level of volatility and modest risk of negative returns, wins our award this year.

The $7.3 billion fund has a 45-year history. It expects to have two to three negative years in every 20, compared with three to four years for a balanced fund. It currently has 53% invested in defensive assets and 47% in growth. Growth assets include Australian shares (16%), international shares (16%), property (9%) and alternatives (6%). It has 19% in cash, 21% in fixed interest, 10% in defensive alternatives and 3% in infrastructure.

But the trade-off for lower risk is lower returns over the long term compared with options that hold more growth assets.

The fund has total investment fees of 0.98%; admin costs of $1.80 a week ($93.60 a year) plus an annual asset-based fee of 0.18% ($90 for every $50,000).

Both Catholic Super and run-

ner-up VicSuper’s FutureSaver

Capital Stable invest along environmental, social and governance lines. VicSuper’s fund has investment fees of 0.62% with admin of $1.50 a week plus 0.28%, which is capped at $125 a month. It offers members financial advice and education which are typically free. It holds seminars throughout Victoria on retirement, pensions, women and retirement plus topics such as the Centrelink changes that affect retirees.

The fund has a website for the Super Woman Money program (superwomanmoney.com.au).