A low-profile superannuation fund that operates via an app has generated the highest one-year return among balanced super funds, according to the latest data.
Raiz Invest Super’s ‘Moderately Aggressive’ balanced options returned 13.8% in the year to 30 June, research firm SuperRatings said.
It beat much larger funds such as Legal Super’s MySuper Balanced with 12.6% and HostPlus’ Index Balance with 12.0% with the remaining seven funds in the top 10, which generated returns between 11.2% and 12.0%, compared with an average of 10.5%.
“It’s pleasing to see a range of funds in this year’s top performers with some smaller funds showing their ability to deliver strong returns to their members through uncertain times,” SuperRatings Director Kirby Rappell said in a media release.
The same Raiz fund was the highest return balanced passive option with one- and five-year returns of 13.8% and 8.9% respectively.
Raiz Invest Super is the superannuation arm of the Raiz Invest (ASX: RZI) micro-investing platform, which has about A$1.6 billion under management for more than 300,000 customers who invest via an app or its website.
The highest 10-year returns of the funds in the top 10 came from Australian Retirement Trust’s Super Savings Balance fund at 8.2%, ahead of the HostPlus and Legal Super funds at 8.8% and 7.3% respectively, compared with a 7.1% average.
Rappell said international technology and Australian financial shares continued over the two years tending to drive most of the returns with benchmark-tracking options outperforming more active investing strategies.
In a year of extraordinary global events, the first half brought back much-needed stability to returns and the second half saw extreme ups and downs as global events threw markets into turmoil.
Balanced funds, those with between 60% and 76% of their portfolio invested in growth assets, were again expected to deliver positive returns while more than half were expected to reach double digits for the year.
Rappell expected “more ups and downs” in the current financial year, which were a reminder to ensure super settings were suitable for current circumstances.
“Depending on when members need to begin drawing on their funds, they may have the option to ride out these kinds of ups and downs. However, for members nearing, or in, retirement minimising these fluctuations can be a key factor in their retirement planning,” he said.
