Australian equity superannuation funds returns are lagging behind their global equity super fund counterparts, according to data.
FE Analytics data has shown, within the Australian Superannuation universe, the average Australian equity super fund lost 6.6% so far this year compared to a loss of 1.6% for global equity super funds.
Australian equity super fund sector performance versus global equity super fund sector since start of 2020
Source: FE Analytics
The top global equity super funds since the start of 2020 to 31 August, 2020, was CFS W Personal Super Baillie Gifford Wholesale Long Term Global Growth at 58.75%
This was followed by BT Super for Life Pendal Technology Retirement (37.66%), CFS Global Technology and Communications ROSCO (25.9%), BT Super T. Rowe Price Global Shares (16.96%), and CFS FC W Personal Super T. Rowe Price Wholesale Global Equity (16.63%).
According to its latest factsheet, the Baillie Gifford fund had its largest holdings in Tesla (9.3%), Amazon (8.4%), Tencent (6.75%), Illumina (5.87%), and Alibaba Group (5.4%).
Over the long term, global equity super funds again beat their Australian equity counterparts at a return over 27.88% over the three years to 31 August, 2020, compared to 15.37%.
Australian equity super fund sector performance versus global equity super fund sector over the three years to 31 August 2020
Source: FE Analytics
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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