Where does your super
money vote?
It appears
that there will be a change of government as voters are unhappy with the last 6 years of the
current version of a government.
However
many who vote for non Labor parties
will have their super funds in various industry funds. These industry funds
have marketed themselves as no commission & low cost & have attracted
many via industrial award bullying.
Since when
was low cost the benchmark for wise purchases?
They are
advertising at every bus stop & at every TV advert break
Are they
doing it for nothing?
Where do
their profits go?
Who is on
their boards?
How much do
they contribute to the Labor party?
And lastly
how do their funds perform?
Let’s look
at a big one marketed as AustralianSuper.
We observe their investment fees are not that low
& certainly not zero.
In fact
from 0.08% for cash to 1.06% for international share option & their balanced option which in many cases is
the default option is 0.66%.
We suggest
that the fees are lower because they haven’t had to do the marketing costs that
every other business has to spend to attract business. That’s what Industry
awards can do for them. Bully from them.
Let’s look at their returns.
Performance for Balanced |
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Performance for High Growth
|
Daily
Rate (01.09.13)
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FYTD (01.07.13 - 01.09.13)
|
1 Year (%pa)
|
3 Year (%pa)
|
5 Year (%pa)
|
10 Year (%pa)
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Inception 01.07.96 (%pa)
|
|
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to 30.06.13 pa
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AusSuper
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0.00%
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4.38%
|
17.27%
|
9.03%
|
3.28%
|
7.42%
|
7.43%
|
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Benchmark
|
n/a
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n/a
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17.11%
|
8.65%
|
3.50%
|
6.78%
|
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We also
recall recently that due to claim experience this super fund has increased
insurance premiums within by substantial amounts 30% + approximately . The world’s oldest profession who
solicits ‘no win no fee’ can be
thanked for that.
Insurance
is another article in itself & no
advice could be very costly to you & your family. Just note that they are group plans with
exclusions.
We tailored Ron’s insurance with 1.4 m life cover as 2 very young
children & no house.
When we
reviewed last week end Ron’s portfolio that we had tailored for him after his
request for help 2 years ago we see on our desk today.
Total Portfolio Return 15 Apr
2011 ,20.36% 20.30% 20.36% N/A, N/A
Individual Investment Returns
Cash Account Portfolios
CASH, Cash Account 15 Apr 2011 10.08% ,1.26% 1.26% 1.26% N/A, N/A
Australian Shares -
Concentrated
PER0102AU Perpetual Wholesale Concentrated Equity Fund 20 May 2011,
13.08% , 28.32% 28.23% 28.32% N/A, N/A
Australian Shares - Specialist
PPL0106AU Antares High Growth Shares Fund 20 May 2011, 11.31% ,
24.49% 24.42% 24.49% N/A ,N/A
Australian Shares Portfolios
IOF0206AU Perennial Value Shares Wholesale Trust 20 May 2011,
13.41% 23.92% 23.84% 23.92% N/A, N/A
Cash Portfolios
SBC0811AU UBS Cash Fund 20 May 2011, 5.22% , 1.84% 1.83% 1.84% N/A,
N/A
International Fixed Interest
Portfolios
ETL0018AU PIMCO EQT Wholesale Global Bond Fund 20 May 2011 , 10.03%
, 2.24% 2.23% 2.24% N/A, N/A
International Shares -
Regional and Emerging Markets
BTA0130AU BT Wholesale Japanese Share Fund 25 May 2011,14.83%
,.17% 40.04% 40.17% N/A ,N/A
PLA0004AU Platinum Asia Fund 20 May 2011 7.35% , 28.01% 27.92%
28.01% N/A ,N/A
Account
Number: Ron
Ron wasn’t
unhappy with those results & yes we are not comparing apples with apples as
this is a tailored plan for Ron. Ron approached us in April 2011 & the
market has been good & the Australian dollar has fallen.
Ron is also not a trustee of his fund as who would want to be. Even Phil Kerns has written loudly on why
you shouldn’t be a trustee. We aren’t either & we have been an adviser
for 29 years. Greg our mechanic, agreed with us & not his accountant who had suggested the SMSF story.
If you want
your money to vote as you do then you are welcome to call us on 07 3848 1088 or email or
visit our websites
Our
principle is ‘what would we do if we were in your position so that you will be better
off in three years time’.
Let’s not forget that any shade & colour of government wants $170 Billion
each year of your money. You need it
more & waste less of it.
Lets also
remember the largest fee is the
government 15% on earnings. However if you are over 55 then we can reduce that to Zero. We might even
help your debt reduction need.
John McAuliffe
