Best Growth Super Funds
International shares, particularly in emerging markets, provide the winning edge
AustSafe Super’s winning growth investment option has been boosted by strong performance from its international shares, including emerging markets, and from property, unlisted infrastructure and small-cap Australian shares.
AustSafe was originally set up for rural and regional Australians but the $2 billion fund is open to the public. It has 110,000 members and turns 30 in 2018.
AustSafe’s asset consultant, JANA, favours an active approach, rather than passive or index management. The fund has 89% in growth assets, with 34% in Australian shares, 14% growth alternatives, 7% infrastructure and 10% property.
The growth option had upped its asset allocation to overseas sharemarkets (34% of the portfolio), a smart move as the US market continues its record run. “International equities performance has been positively impacted by a discrete allocation to emerging and Asian equities with performance over the last 12 months significantly outperforming developed markets,” says Craig Stevens, CEO of AustSafe Super.
The fund’s performance was also helped by a low currency hedging approach as the Australian dollar has weakened over the past five years.
Property returned 31% for the year to the end of June 2017. Stevens says that opportunistic investments in large retail centres in NSW that were bought in 2012 and sold in June 2017 helped the fund’s performance.
Infrastructure has outperformed over the past five years due to a number of assets in the underlying funds experiencing significant increases in valuation, particularly the European assets. Regional infrastructure assets include investments in the airports on the Gold Coast, in Longreach, Townsville, Mt Isa, Mackay, Cairns and Launceston and in the Port of Newcastle.
Australian equities outperformed due to active management from large-cap managers and an overweight position in small and mid cap equities.
AustSafe charges a total investment fee of 1.29% plus administration charges of $2.30 a week ($119.60 a year) and 0.15%pa of your balance ($75 on $50,000).