Low Fees Indexed Superfund Options (Not Hostplus) - Thoughts on Unlisted Assets?

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  blocky27 on 27/07/2022 - 11:04

  +1

  Take a look at Rest

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  JohnSy on 27/07/2022 - 11:12

  +2

  I think you may be overlooking what your current superfund may be invested in.

  Correct me if I am wrong but I think a large proportion of your Hostplus fund is likely just mirroring an ASX index (hence the low fees). As this index is listed, it, therefore, doesn't suffer from the discretionary valuations which you are currently concerned about.

  The important thing is the individual fund itself and what it invests in, not just the company that runs the fund.

  • 

    xdigger on 27/07/2022 - 11:13

    Thanks mate, what funds/options would you suggest?

    • 

      JohnSy on 27/07/2022 - 11:19

      +2

      I think you are missing my point.

      From the website "The Indexed Balanced option is diversified across international and Australian shares, international and Australian fixed interest, and cash"

      These assets are all listed and valued "at market" every day. These type of assets therefore don't have the risk of discretionary valuations. They rise and fall in value due to market demands.

      This is as good as it gets with respect to accurate valuations.
      So considering this, why move?

       * This is not financial advice.
      

      • 

        xdigger on 27/07/2022 - 12:58

        Ah thanks for clarifying!

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  Trying2SaveABuck on 27/07/2022 - 11:14

  but I'm definitely not keen on taking on unlisted assets risks which seems scandalous to a layperson like myself imho.

  Thus is why you shouldnt change or touch anything - Im sure there a slight better options then Hostplus Balanced Index fund but there are a hell of a lot worse.

  You are also invested in the 'index' which means more of your investment returns will be based on how the 'overall' markets do - i also am invested in balanced index my understanding is ~45% is international stocks, ~35% Australian the rest is fixed term investments and cash assuming you got a long way to retirement there is nothing wrong with this set up - if you want a bit more risk you could go all in Stocks 100%

  • This is not financial advice
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  MrMarket on 27/07/2022 - 11:36

  -1

  They are all doing it, when it comes to finance unless you control it yourself
  it hard to see anyone put your interest before theirs

  There are performance bonuses to meet and we can't have that going to waste

  unlisted asset is one way to dodge it, market rally dressing is another, index hugging while charging active fee is another
  The list is endless

  Having said all that, not everyone is fit to manage their own Super, some just don't have the skills and are likely to fall for scams, speculations
  and a whole raft of things that they could be ending up losing their nest eggs

  to manage your own money, you really need to have a good framework to protect you from making crazy and gambling decisions, think long term and have strong investment foundation.

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  netjock on 27/07/2022 - 12:18

  +1

  Why are you worried?

  You are in the international, Australian index, cash and bonds. The ABC article talks about valuation of unquoted equity (usually private equity and venture capital). Your investment option has 0% in private equity.

  Hostplus balanced indexed

  There is balanced investment with 10% in private equity. Indexed balanced has 0%. You might want to be sure what you're in. If the 10% of PE went to zero how much would you lose?

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  Gareth on 27/07/2022 - 14:18

  -1

  This is exactly the problem I thought of when reading the alarmist ABC article. There are a heck of a lot of people NOT in funds exposed to these unlisted investments.

  Whether there are funds pumping up the unlisted investments as described or not, you're best to look at the overall fund performance and not spend too much time worrying about the minutiae of individual investments. It is the value of your investment when you retire that matters, not each of the individual movements between now and then.

  • 

    netjock on 27/07/2022 - 14:30

    Private equity is great if true. Some private equity listed investment trusts are paying 3% - 4% dividends and up to 30% discount to NAV. 10 year share price returns are 250%

  • 

    mrtin on 27/07/2022 - 23:33

    +1

    I thought the opposite. Members in major funds and in default options like aust super, host plus, aware, rest etc will have exposure to unlisted assets?
    Aust super balanced has at least 25% in unlisted investments. And in this game when very small % matter from a marketing perspective a slight over performance by getting a relatively favourable valuation can mean millions of additional inflow.
    Take Canva as another example. A fund revalued it down 36%. Some revalued it down less. Some didn't change the value. Some chose not to disclose to the public including their own members. If left unchanged, then they could bolster relative returns when when an equivalent listed investment is down 30%.

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  Awesomandy on 27/07/2022 - 15:38

  Private equity is great if you know what you’re doing, watch it like a hawk, and get out while prices are still good

  • 

    xdigger on 28/07/2022 - 15:33

    I guess that means you are essentially timing the market?? Most superfunds members or even retail investors aren't that great in doing so.

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  hoey888 on 28/07/2022 - 15:55

  +1

  *Not financial advice
  Looking at 30 year historical returns, chances there is going to be at least a few downturns leading up to retirement and another few during retirement. I'm in my 30s, I've gone into a geared index superannuation fund.

  If I'm not able to access super for the next 30 years, who cares +/- 10-20%. So long as there is good long term performance and its earning more than benchmark, I'm happy.