The spectre of early release still looms large over the industry, and super’s true believers want its purpose legislated to prevent Australia’s retirement savings from becoming a crisis piggy bank.
Allocations to unlisted property, diversified fixed interest, Australian and international shares had the greatest impact on whether an option passed the test or not.
Australian Retirement Trust (ART) and QIC are continuing the trend of big funds investing in affordable housing, working in conjunction with community housing provider Brisbane Housing Company.
A big chunk of super funds are now in “limp mode” as their buffer against the performance test evaporates. And sustainable investing is getting harder when even tobacco exclusions eat up the tracking error budget.
Super fund members have been “spared the worst”, while the outperformance of the top ten funds was generated by active management and chunky allocations to private markets.
“When it comes to super, all the evidence points to the more you pay, the less you get. There’s lots of reasons for that, the most fundamental of which is that active management really struggles to outperform the market.”