How to Invest Personal Savings Similar to Superannuation Strategy?

pixpotato on 12/06/2023 - 14:16

So I am currently with UniSuper and love how th the High Growth, Australian Shares, International Shares and Global Companies in Asia investment options perform.

What I am trying to figure out is - is there any way to invest our savings in portfolios similar to this.
I've downloaded the portfolios and looked at what they are made out of - but there's literally thousands of shares - which is obvious to some and makes sense.

The closest I can think of are ETFs that are similar to these portfolios, but DHHF for instance doesn't perform anywhere close to High Growth in UniSuper.

Would love to hear some thoughts on how the ozb fam is investing your money outside of Ubank etc.

Financial Superannuation

Comments

  • SBOB on 12/06/2023 - 14:32

    but DHHF for instance doesn't perform anywhere close to High Growth in UniSuper

    Curious to see that analysis of such vastly different performance.

    • cmafra on 12/06/2023 - 16:18
      +1

      Every Super fund is a vehicle that has special tax treatments. They will pay 10% tax in Capital Gains and 15% in Earning/Dividends.

      So basically unless, you are on the lower income tax bracket, the super will generally outperform a similar invested ETF purchased outside super - as those will have to pay CGT and Normal generally way above 15% tax on earnings.

      There is a good reason why the government is cracking down on limits of what you can add to super and trying to Tax balances that are over millions of dollars at 30% instead of 15%. It is just a great deal taxwise.

  • scotty on 12/06/2023 - 14:45
    +1

    They just have different asset allocation. UniSuper High Growth is 49% international share & 45% Australian share, where DFFF is more "diversified" (literally in its name) with 36% Australian share, 37.4% US share and 26.7% developing/emerging markets. DFFF is also pretty new.

    DHHF for instance doesn't perform anywhere close to High Growth in UniSuper

    In what timeframe? BetaShare says 7.91% return for DFFF whereas UniSuper High Growth is 5.14%?

    • pixpotato on 12/06/2023 - 14:55

      Well I saw 15 Dec 20 as inception date on DHHF's website - where high growth was 46645 vs 53909 now giving it a 15.57% return vs 13.01 return on share price - but I guess there would have been dividends with DHHF - ok maybe my comment wasn't as accurate now that I am further looking into this.

  • Lunarboogie on 12/06/2023 - 15:33

    ETFs are probably the easiest approximations for super. However, instead of going down that path, have you thought of just investing more into your super fund? The tax treatment is hard to beat, though it depends on your age and other circumstances. In my view, anyone over 45 should be diverting every spare cent into super.

    • pixpotato on 12/06/2023 - 15:38

      I'm a long way away from 45 :( , I like your thinking but!

      • Daniel Plainview on 13/06/2023 - 11:59

        Honestly, once you take into account the power of compounding this is even more important. Younger folks see super as being waaaaaaaaay off and so disregard heavily and then get disenchanted their account does SFA.

        Get in low cost fund (or better still after certain point an SMSF), aggressive investment allocations and leave it be putting in extra and using Govt incentives to top up.

    • SBOB on 12/06/2023 - 16:03

      The tax treatment is hard to beat,

      Even post 27.5k yr threshold?

  • Daniel Plainview on 12/06/2023 - 16:14
    +1

    @Rickypoontang

    You'd likely NOT want to be in exactly the same products as Unisuper uses - as the taxation levels on income & CGT are very different for super vs personal assets. As a general rule of thumb assets with high levels of CGT are best held within super e.g certain ETFs have very high turnover of holdings resulting in high CGT levels.

    Should be pretty simple to replicate the approx. assets weights for those products - but bear in mind they likely actively vary the levels of assets depending on how they feel about the market at any given time - hence most fund will give ranges they hold assets within e.g Intl Shares - Unhedged 0-30%.

    Read this website from front to back and thank me later: https://passiveinvestingaustralia.com/

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