Best Cap­i­tal Sta­ble Su­per Funds Best-Value In­sur­ance in Su­per


Money Magazine Australia - - CONTENTS -

A risk-averse ap­proach, cou­pled with low fees, proves a win­ning for­mula

Strong in­vest­ment per­for­mance and low fees have pro­pelled First Su­per’s Con­ser­va­tive Bal­anced fund into the win­ning spot this year.

The $3 bil­lion fund, which has 64,000 mem­bers, is the re­sult of the amal­ga­ma­tion in June 2008 of three smaller funds pro­vid­ing ser­vices for the fur­ni­ture and join­ery in­dus­try, the pulp and pa­per in­dus­try and the tim­ber in­dus­try.

First Su­per has spread the Con­ser­va­tive Bal­anced as­sets across 26 fund man­agers, which in­clude big in­ter­na­tional in­vest­ment houses such as Black­Rock, Pimco and Cap­i­tal Group, as well as Aus­tralian man­agers such as IFM In­vestors, Per­pet­ual, Eley Grif­fiths and QIC.

The Con­ser­va­tive Bal­anced fund holds 50% in de­fen­sive as­sets such as cash (22%) and Aus­tralian and in­ter­na­tional fixed in­ter­est (28%). The other half is in­vested in Aus­tralian eq­ui­ties (17%), in­ter­na­tional shares (13%), Aus­tralian un­listed prop­erty (10%) and lo­cal and global in­fra­struc­ture (10%).

First Su­per charges mem­bers an in­vest­ment fee of 0.49% (in­clud­ing an in­di­rect cost ra­tio of 0.03%) with a prop­erty op­er­a­tional cost of 0.07%. Mem­bers also pay a $78pa ad­min fee as well as 0.05%pa on the ac­count balance.

Catholic Su­per’s Moder­ately Con­ser­va­tive fund, which has low volatil­ity and mod­est risk of neg­a­tive re­turns (two or three ev­ery 20 years), comes sec­ond this year, down from the top spot last year.

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