We had the
occasion this week to compare two supers as Shane* intended to switch into
arguably a low cost fund where is his work super is.
I.e. Shane*
was under the illusion that low cost means it must be better.
He had seen the advt. which suggests that our
one is smaller than your one.
This could
very well be true.
As an
adviser we are expected & it is our mission to provide benchmark
advice.
In fact
Shane* pays us to do so
So we accessed a comparative tool that we subscribe for to help our clients make considered decisions.
We produced
this comparison of their performances
|
Performance data
as at date |
28 Feb 2015
|
28 Feb 2015
|
|
|
||
|
3 month
|
6.20%
|
11.62%
|
|
|
||
|
1 Year
|
15.26%
|
18.24%
|
|
|
||
|
3 Year % p.a.
|
12.59%
|
22.39%
|
|
|
||
|
5 Year % p.a.
|
9.92%
|
13.72%
|
|
|
||
|
* After tax and fees
|
||
Which fund
would you select?
On the
comparison chart we also produced a fee difference chart & yes there is a fee difference. But it is
not ~4%.
|
APIR
|
N/A
|
N/A
|
|
|
||
|
Asset type
|
Multi-Asset
|
Equity
|
|
|
||
|
Subregion
|
Australia
|
Australia
|
|
|
||
|
Multi-manager
|
Yes
|
No
|
|
|
||
|
Management fee**
|
0.30
|
0.99
|
|
|
||
|
ICR**
|
0.63
|
0.99
|
|
|
||
|
Buy/sell spread*
|
0
|
0.30
|
|
|
||
|
Mercer Capability Rating
|
N/A
|
B+ (P)
|
|
|
||
|
Fee Ranking
|
Not calculated
|
Not calculated
|
|
|
||
|
Fund Status
|
Open
|
Open
|
As you
might observe these are different types of funds as we are unclear what fund
Shane* was churning to. As it wasn’t under our advice & his own choice then
it is likely to be the default fund.
Shane* now
has all the facts so that he can make a judgement call.
It is his call but as in
the real world performances count.
Nothing has
changed & you get what you pay for.
We have
seen plenty of noise regarding the care of big institutions. Recall it is the big
guys that that tell the big lies which is why they are so big.
Yes if you
are considering switching then yes we can provide you with a full comparison
between funds.
As Mark* who has 1.5m in cash today said he wants &
expects honest advice. If he should not
proceed then he expects to be told. He ‘does
not want yes men’.
We had James just call us. We helped him in last two years
stay afloat by accessing his super. If you are like James & over 55 &
need some guidance that you too could call us.
If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.
John McAuliffe
