2% return last year on my super with bussq

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Elives, 16th Sep, 2020.

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  1. Shogun

    Shogun Well-Known Member

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    How is your Super looking now? If Market continues at end of June the 2 year average should be ok
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Looking at CBUS and Sunsuper (and excluding contributions) the two year results to date across various investment streams is 20%, 17.7% & 18% (so 9%+ pa average returns). If anything, trajectories are slightly below expectation due to the near zero return for 2019/20.
     
  3. Shogun

    Shogun Well-Known Member

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    Over nearly 40 years cBus growth fund averages neatly 9% so in the middle of this year it still will be on track to continue that trend. I assume most funds are similar and most Super funds would be the same returning to long term average returns. So all those that panicked last year because of low returns this year should be back to long term averages
     
  4. Noobieboy

    Noobieboy Well-Known Member

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    Not all super funds are the same. In long term, industry super funds outperformed retail (aka for profit) funds.
    In terms of performance, the Productivity Commission’s report found that not-for-profit industry funds have “systematically outperformed” retail funds. It also found that 77% of member accounts in underperforming funds were in retail funds, even though retail funds represented just nine of the 29 underperforming funds identified.


    That is why most Australians have their money in Industry super funds.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I'm a little :confused:....If 77% of member accounts are in retail funds, why do retail funds only represent 9/29 of the underperforming funds (or are those 9 retail funds so big that they represent 77% of member accounts)?
     
  6. Noobieboy

    Noobieboy Well-Known Member

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    I don’t think you have read it correctly. It is saying that 77% of all accounts that underperforming are in retails funds. It pretty much means that almost everyone who is in retail fund is losing out.

    Say if there are 100 Accounts that underperformed. 77 of those accounts were in retail funds. Capish?
     
  7. Shogun

    Shogun Well-Known Member

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    I meant all funds are the same as in will return to long term average returns after a bad year last year.

    And compared too ASX 200 growth Super funds mostly perform poorly
     
  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Super funds cant just invest in the ASX 200 - They must consider hegding, cash and diversification as well as member mandated strategy choices. Ifa fund offeres 100% asx200 they would probably be a poor performer. Well at least in x out of Y years. Super is long term. Growth. and minimised risks for member age profiles

    Last year wasnt a bad year if you consider events that occurred during the calendar year. This is a great example of looking at short term vs longer term.

    Choose your investments - Moneysmart.gov.au
     
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  9. Noobieboy

    Noobieboy Well-Known Member

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    Over a short term? Maybe. Long term. Not really.