Did risk pay off for the top 5 Australian equity super funds?

While MLC’s MK Business Super Fairview Equity Partners Emerging Companies superannuation fund had high volatility, the fund was the best performing Australian equity super fund with the best risk-adjusted return out of the top five in 2019.

According to FE Analytics, over the year to 31 December, 2019, the fund returned 39.24% with a volatility of 11.55. This was the second-highest volatility of the top five. However, on a risk-adjusted basis, the fund’s sharpe ratio was at 3.5.

The fund invests 90% to 100% in Australian small company equities and up to 10% in cash and cash equivalents.

Related News:

AMP SignatureSuper Macquarie Group Limited Shares followed the MLC fund in terms of performance at 31.86% over the same time period but had the worst sharpe ratio within the top five at 1.86. Its volatility was the highest at 16.35.

The fund with the second-best risk adjusted return, Suncorp Brighter Super Per Hyperion Australian Growth Companies, had a sharpe ratio of 2.77 and a return of 30.74%.

Australian Catholic Super’s Australian Share fund followed Suncorp in both sharpe and return at 2.56 and 29.18% respectively.

Commonwealth Select Personal Superannuation Ausbil Australian Active Equity Option fund rounded out the top five in terms of returns at 28.49% with a sharpe ratio of 2.36, landing it in the fourth quarter for both figures within the top five.

In comparison, the Australian equity super sector returned an average of 20.68% over the year to 31 December, 2019, with an average sharpe ratio of 2.5 and a volatility of 7.9.

 

Top five performing Australian equity superannuation funds over the year to 31 December 2019

Fund

Return

Sharpe ratio

While MLC’s MK Business Super Fairview Equity Partners Emerging Companies

39.24%

3.53

AMP SignatureSuper Macquarie Group Limited Shares

31.86%

1.86

Suncorp

Brighter Super Per Hyperion Australian Growth Companies

30.74%

2.77

Australian Catholic Super

Australian Shares

29.18%

2.59

Commonwealth

Select Personal Superannuation

Ausbil Australian Active Equity Option

28.49%

2.36

Australian equity funds superannuation sector

20.68%

2.5

Source: FE Analytics

 

 




Recommended for you

Author

Comments

Add new comment