Two ethical and sustainable growth superannuation funds have been some of the top-performing growth funds in 2020, according to data.
With the COVID-19 pandemic rocking markets last year, the sector’s average return for growth super funds was 1.9%, according to FE Analytics data.
The top two performing funds in this sector were Suncorp funds – Brighter Super Personal Suncorp Multi-Manager Growth and Brighter Super Business Suncorp Multi-Manager Growth both at 9.56%.
These were followed by HESTA Sustainable Growth (previously Eco Pool) at 9.36%, Australian Ethical Growth at 6.35%, and Sunsuper Balanced Index at 6.15%.
Top-performing growth super funds in 2020
Source: FE Analytics
HESTA said its Sustainable Growth fund excluded investing in uranium, fossil fuels, tobacco, and controversial weapons. The fund invested in environmental, social and governance performance companies, sustainable properties, and sustainable solutions.
“Only companies that generate environmental benefits through reduced reliance on fossil fuels, energy, and resources are included in this option,” HESTA said.
On the other end of the scale, the poorest-performing fund was CFS FC W PersonalSuper Milliman W Managed Risk M-I High Growth at a loss of 8.28%.
Over the long term, it was Australian Super High Growth Option that was the top performer at 153.07% over the 10 years to 31 December, 2020.
This was followed by QSuper Aggressive Option (141.26%), Sunsuper Growth Option (131.22%), AON ACS Growth Index (130.67%), and MLC MK Super Fundamentals Horizon 5 Growth Portfolio (124.39%). The sector average for growth super funds for the same time period was 85.89%.
AXA Superguard II Property Biased Portfolio was the poorest-performing fund over 10 years at 48.32%.
Top-performing growth super funds over 10 years to 31 December 2020
Source: FE Analytics
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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