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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.
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
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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
73.88 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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