Superannuation fund members investing with a conscience may be losing retirement savings as a result, with sustainable options often coming at the cost of higher fees and lower returns.
The median performance of sustainable options is lower than an index constructed by SuperRatings of traditional balanced funds, as well as having higher median fees, according to data from the research house.
There are however, some sustainable funds that outperform the market, with offerings by HESTA, VicSuper, AustralianSuper, WA Super and UniSuper all delivering strong returns at competitive fees, as shown in the table below.
Of course, it should be noted that not all sustainable options are created equal. While some simply apply a screen on certain industries, other perform in-depth analysis of individual companies, which obviously comes at a cost.
SuperRatings acknowledged that “this makes it hard to provide a definitive ranking of sustainable fund performance”, with its executive director, Kirby Rappell, saying that: “When considering sustainable alternatives, it is important to look at each individual fund’s mandate, their process for investing sustainably, and of course the industries and businesses they do and do not invest in.”
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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