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Small super funds outperform competitors: CoreData
The Best Possible Retirement (BPR) Index has revealed that small superannuation funds received higher satisfaction levels than those with industry sector funds.
CoreData’s BPR Index report exhibited the high performance of smaller super funds, amidst an “inevitable” increase in mergers throughout 2022. The report surveyed more than 5,900 Australians aged 45 and above.
The research followed speculation that Australians in the future may need to choose between a select number of mega-funds, if small funds were to continue merging.
The Australian Prudential Regulation Authority (APRA) had previously pushed for further consolidation in the industry, alongside the 20% of super funds which failed the Choice performance test.
CoreData revealed that small funds outperformed the industry sector by 1% in the retirement experience, with the former receiving 61% and the latter with 60%.
Both sectors recorded equal outcomes for retirement satisfaction at 61%, confidence and comfort at 63% and financial discipline at 62%.
The report found that retail sector funds performed the highest for pre-retirees, followed by small funds. Retail funds received 56% on preparedness for retirement, 53% on confidence and comfort and 60% on financial discipline.
Overall, the Index recorded a 3% decline in retirement experience, from 56 points to
53 out of 100. CoreData commented that these findings reflected an “austere outlook for the growing number of Australian retirees transitioning into retirement”.
Confidence in future financial security also experienced a decrease, with less than one-third of retirees stating they would have sufficient funds to last their lifetime.
“How Australians retire should not be determined by when they retire and what cycle the market is in, but rather draw on a range of consistent and reliable determinants which give Australians confidence and peace of mind in retirement,” said CoreData founder, Andrew Inwood.
AUTHOR
Jasmine Siljic
Jasmine Siljic is a cadet journalist at Money Management and Super Review. Prior to joining MM and SR, she also worked across other Momentum Media brands as an intern. Jasmine previously completed an internship at Mamamia news. She is currently studying a Bachelor of Media and Communications at Macquarie University.
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
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