Super Fund ratings lack context.
Have you thought about changing your superfund based on a news article like this?
Whenever these reports are released, we get a handful of enquiries about these funds, and the question is always the same, “I saw on the news that XYZ fund is a bad super fund?”.
The real question being asked is obvious, have I made the right decision with my retirement funds?
We then explain to the client what isn’t often made obvious on the news, that these ratings apply to individual investment options in superfunds, not the entire super fund itself. These ratings often only apply to the MySuper option contained within the superfund and not any of the thousands of other super options out there.
Take this paragraph from the above article for example:
“APRA singled out 80 options that significantly underperformed. They are operated by trustees AUSCOAL Superannuation (Mine Super), Avanteos Investments (Colonial First State FirstChoice Super), AvSuper, BT Funds Management (Retirement Wrap), EISS Super, Perpetual (WealthFocus Superannuation Fund) and REI Super.”
It would be easy to stop there and assume that these super funds named are poor funds and if you overheard a short TV news segment this might be the impression you got.
However it is important to note that it is investment options underneath that they are talking about, in particular it is the particular investment options such as OnePath products Pendal Monthly Income Plus, Perpetual Conservative Growth, UBS Defensive, BT option Pendal Growth Shares and Equity Trustees' Zurich Retirement Product, Umbrella Financial Plan Super, Crescent Wealth Superannuation Fund, and smartMonday.
You may be invested in a OnePath, Colonial First State or BT product and your performance was great because you were invested in a different option to the specific options in the report. These super funds have literally thousands of possible investment options underlying them and the entire super fund shouldn’t be tarred with the same brush.
This is where your skilled adviser comes in, the assist you in cutting through the noise and industry jargon and make the right decisions for your financial future.
If you have concerns about where your super is invested or you aren’t sure how to proceed with your retirement plans please reach out to Evolution Financial Planning today.
