Hey Scott,
I was reading about the best performing super funds, which were Mine Super, Colonial FirstChoice, and IOOF – all of which earned over 10% and easily beat my super fund (AustralianSuper). Have you looked at these super funds in detail, and would you consider switching if you were me?
Russell
Hi Russell
I view annual super fund returns tables like I do a tacky beauty pageant:
Fake tans. Fake nails. And the winning fund managers strutting around in evening dresses, posing for investors. Pass me the vomit bag!
The truth is that you do not want to be in the latest ‘hot’ fund.
Why?
Because statistics show that the lucky fund this year is just as likely to be next year’s dog.
Standard and Poor’s looked at the top-performing share fund managers two years ago and found that only 2% of them remained top performers today.
That explains why, over the past five years, 95% of Aussie share fund managers have underperformed an equivalent index fund ETF, after fees.
That’s why I think we should rejig the current super fund table – and instead rank them on fees. Any super fund charging its members over 1% should be made to get in a bikini and parade down Martin Place.
Scott.