LGIAsuper delivers for members - in good times, and in bad
New research shows an award-winning Queensland super fund is one of Australia’s top performing funds - and not just in the good times.
The report from independent research, ratings and consulting house SuperRatings shows LGIAsuper, outperformed the typical return in 89% of falling markets over the last 7 years with respect to its Balanced Option.
‘LGIAsuper has sustained better medium term performance (over the five years to 30 June 2016) with relatively lower risk than the peer group of Balanced options surveyed’, said SuperRatings’ Wendy Tse, General Manager, Consulting.
‘Although performance returns are important, risk-adjusted measures are a better measure of a fund’s overall investment outcomes.’
Head of Investment, Guy Rundle, said the research confirmed that LGIAsuper was able to provide competitive returns to members while taking much less risk than most super funds.
‘A lot of funds boast about having better returns than their competitors over short periods of time, and often they do that by taking on more risk. So when markets fall, as they did during the GFC, those top-performing funds can quickly become the worst-performing.’
The report from SuperRatings suggests a broader discussion within the industry is needed to more critically analyse the success (or otherwise) of the overall investment outcomes delivered to members by superannuation funds, including a combination of investment performance surveys and risk-adjusted return metrics to assess the level of risk taken by funds to achieve the returns over any given period.
Mr Rundle said LGIAsuper’s aim was to provide members with consistent investment returns, with a focus on protecting capital in poor markets.
LGIAsuper opened its doors to public membership on 30 June, after being the default fund for Queensland local government employees for more than 50 years. The fund manages over $10 billion on behalf of more than 85,000 members. LGIAsuper has been awarded SuperRatings’ prestigious ‘Platinum’ rating for the last 9 consecutive years.
For more information please contact: Guy Rundle, Head of Investment on 1800 444 396.