The industry fund has taken a 49 per cent stake in subscription vehicle provider Splend alongside IFM and other co-investors as it looks to build a 10 per cent exposure to climate solutions in its global portfolio.
After years of powering super returns into the double digits, US equities are walking a tightrope, and one misstep could send them plunging to earth. But the story that put them up there in the first place still holds true.
BUSSQ takes top honours in good start to the year
(pictured: Jeff Bresnahan)
David O’Sullivan has set himself a high bar to beat in his upcoming role as CIO of BUSSQ, the Queensland building industry fund. BUSSQ was the top-performing super fund over the past 12 months.
O’Sullivan, who has been both chief executive and CIO of BUSSQ for the past 11 years, is set to become CIO-only in October, when the current chief operating officer, Linda Vickers, becomes CEO. The $3 billion fund has advertised for a new COO as part of the planned succession moves.
The latest SuperRatings performance numbers for big funds – both not-for-profit and retail – show the not-for-profits taking out all top 10 spots in the 12 months to July 31, notwithstanding a share market recovery during the month. Retail funds tend to perform better when markets rally because they have a higher proportion of their assets in the listed asset classes.
Jeff Bresnahan, SuperRatings chair, said investors should remain hopeful of a better year ahead, compared with the tumultuous year just gone, but they should also “keep their wits about them”.
He said: “Many of the risks that have weighed on markets in recent months are still in play, even with Brexit behind us. The unexpected RBA decision earlier this month was a timely reminder that things are still very shaky.”
The RBA’s decision to cut the cash rate to a record low of 1.50 per cent came as a surprise to the market, but did little to curb the Australian dollar, which rose above US $0.77 mark in mid-August. While low rates are providing accommodation to financial markets, the impact on pension funds may not be so positive.
Bresnahan said: “We are still concerned about the impact lower rates will have on pension fund returns… Equity markets have benefited from ultra-loose monetary policy, but it’s savers who ultimately bear the cost. This is something that monetary authorities have not paid a lot of attention to, and it could have a detrimental impact on retirement outcomes.”
The top 10 performing funds, ranked by their balanced options in SuperRatings’ categories, were:
- BUSSQ Premium Choice – balanced growth: 7.0 per cent
- Catholic Super – balanced: 6.4 per cent
- UniSuper Accumulation (1) – balanced: 6.1 per cent
- MTAA Super – MyAuto Super: 5.9 per cent
- Cbus – Growth: 5.9 per cent
- HOSTPLUS – balanced: 5.6 per cent
- REI Super – balanced: 5.5 per cent
- Energy Super – balanced: 5.3 per cent
- AMIST Super – balanced: 4.9 per cent
- Care Super – balanced: 4.6 per cent.
