Something that has always intrigued me is the capacity of the superannuation industry to boast about being below average. The following is a snippet from the AFR.
The larger-than-expected reduction in US interest-rates stoked global markets and helped push average returns for equity-heavy superannuation funds to 8.6 per cent in the calendar year to date.
More here – AFR
To put this into context the YTD return for STW an ETF covering the S&P/ASX 200 is 13.52%
The AFR goes onto the trumpet.
Looking at the past 12 months to September’s end, growth options returned 13.4 per cent. This was a far stronger result than some prior years, with three and five-year returns sitting at 5.4 per cent and 6.6 per cent respectively on an annualised basis.
Even the most active funds trailed simply buying STW and holding it. For added context, the CAGR from STW for the past three and five years was 8.47% and 8.35% respectively.
I have dropped a chart of the YTD return of STW below.
It needs to be remembered that the people boasting about their underperformance are extraordinarily well paid and responsible for the retirement of most Australians. It is little wonder that large numbers of Australians are close to the poverty line in their retirement when the industry responsible for managing their retirement funds boasts about being below average and wears their inadequacy like a badge of honour.
