2022/23 the year unlisted assets proved a super drag
The performance of international equities allocations helped deliver superannuation funds better than expected full-year investment outcomes, while it was unlisted allocated which acted as a drag.
The full financial year analysis of superannuation return by specialist research and ratings house, SuperRatings pointed to the median balanced fund returning 1.2% in June, bringing the financial year return to 8.5%.
It said this needed to be weighed against the minus 3.4% return recorded last financial year.
The SuperRatings analysis said that this year international equities were the standout performers for super funds, with Australian equities and listed property also supporting the strong performance over the year.
However, it said that unlisted assets, such as unlisted property, “have placed a bit of a drag on returns, with a significant number of funds writing down unlisted valuations”.
“These assets have performed well over the long term and provided crucial diversification within portfolios,” it said.
“More defensive options had a tougher year with smaller allocations to equities and a relatively subdued return from fixed interest, however cash options did provide a small silver lining as returns rose off the back of central bank rate rises.”
Commenting on the positive financial year outcome, SuperRatings executive director, Kirby Rappell admitted that, 12 months’ ago, the company had not been anticipating an 8% return and suggested fund members needed to remain alert.
“We expect the ups and downs observed over the last 12 months to continue and members should be prepared for their balances to fluctuate. If you are not approaching or in retirement, keep in mind that all market movements in the short term are not likely to be what you are thinking about when you retire in 20 or 30 years time.”
“with a significant number of funds writing down unlisted valuations”.
How is it that ALL Super Funds don’t have to value Assets properly?
Clearly the whole Industry Super gaming of Unlisted Assets returns is a massive rort that APRA & ASIC do nothing about.
How about we selectively value our clients Assets too.
Ok clients, look Aussie shares returned 5% but we are going to go off an older, not updated valuation so we are going to use a 10% return.
Then we will advertise as the best returns for the year.
It’s all smoke and mirrors and straight up BS, but hope you feel happy.
Compare the Pair.
Real Asset Valuations
V’s
Industry Super made up Valuations that sound great but are complete BS
Simple unlisted funds rule.
In bad years, fudge the returns upwards and run targeted marketing campaign to attract new money. New money then buys in at a premium price hoping to ‘get these returns’…
And that, is how you shore up the real unlisted fund underperformance / losses…
This is what we call a hybrid ponzi scheme people…look and smells similar to SEC in America (regulator) who said they had been investigating Bernie madoff (huge ponzi scheme) but the regulator didn’t really look into anything.
What are our regulators in Australia doing? no set rules for super funds, do what you want, make up the values.
Hostplus have the largest unlisted assets of all super funds 2023 and guess who asked the RBA for bailout during the COVID withdrawals… Hostplus… can’t make this stuff up.