Indholdsfortegnelse for December 2024/January 2025 i Money Magazine

When I was a child, Lego was an affordable toy that consisted of squares and rectangles (with the occasional wheel, ladder and body part) that could be clicked together to make an endless number of variations. Kids would spend hours building something, then pull it apart and create something new next time they dug into the Lego box. Fast forward and Lego – still owned by the Kirk Kristiansen family that founded it in 1923 – has undergone an evolution. It still has bricks for children but it also has Icons sets for the 18-plus market. This consists of NASA rockets, famous buildings, Formula One cars, Harry Potter and the colourful Botanical Collection. All of these use specially moulded parts that, once complete, are so impressive most Lego builders wouldn't…

Two separate but intertwined reports came out recently looking to provide consumers with an assessment of investment performance. The first was the annual superannuation performance test by the Australian Prudential Regulation Authority (APRA) and the second was the mid-year S&P Indices Versus Active Funds (SPIVA) scorecard. APRA's legislated performance test was first undertaken in 2021 for MySuper products. These are the default products most superannuation members end up in due to not making an investment choice. In 2023, APRA extended the test to trustee directed products (TDPs) where the trustee or a connected entity of the trustee has control over the management of investments and/or sets the strategic asset allocation of the product offering. The APRA performance test has two components: investment performance and fees. The first measures the performance…

Do you run a business? Obviously you need to pay tax on your taxable income, which is calculated by deducting your expenses from your assessable income, but the question is: how do you arrive at your assessable income? It is necessary both to determine whether a particular receipt is assessable income and the relevant time period in which to include it – that is, the time at which income is derived. There are two recognised accounting methods for determining the year when income should be brought to account. The cash (sometimes called the receipts) method means that income is taxed when it is received, regardless of when the services from which it was derived were performed. The accruals or earnings method means that income is taxed when it is derived…

SLEEP ON IT What is it? Withings Sleep Analyzer If you need to catch up on sleep over the summer break, the Withings Analyzer offers something different from apps and smartwatches: a hands-off approach. Plug the sensor into a power point and slip it beneath a mattress, where it will track everything from sleep cycles and heart rate to snoring. A sleep score can be viewed through the Withings app (Android and iOS). Cost: From $199 withings.com GIVEAWAY To celebrate Money's 25th birthday, we are giving readers the chance to win a Sleep Analyzer from Withings, valued at $199. To go into the draw, send your name, address and phone number to Money, Withings, Level 7, 55 Clarence Street, Sydney NSW 2000. Entries open December 4, 2024 and close January…

ASK PAUL Need Paul's help? Send your questions to: Ask Paul, Money magazine, Level 7, 55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. Andy wants to buy another home but feels the market is overheated. Q Good day, Paul. This year we sold our house in regional Western Australia and moved to Adelaide. We're currently renting – half is paid by our wages and the other half by interest on the bank account holding the house sale money. My question is: Should we buy a property here straightaway or wait until…

YOUR QUESTION My 15-year-old son has just started his first job at a supermarket working from six to 12 hours a week (earning $130-$270 a week). As he is under the threshold for getting superannuation, I was looking at opening a Student Super account. I was going to get him to make a personal contribution of $10 a week - there are no fees under a balance of $1000, so it will take two years to get to that. Would he be eligible for the co-contribution from the tax office if he does this? So, my son puts in $520 a year and the Australian Taxation Office matches it? I would not have any insurances initially for him, but as he got older he would take those out within super.…

1 Buy a gift that will be valued Christmas may be the season of giving, but when someone says, 'Oh, you shouldn't have', chances are they mean it. According to the Australia Institute, last year's festive season saw more than six million Australians receive presents they didn't want and won't use. That's a whopping $921 million spent on gifts that will likely end up in landfill. “Most of us love buying gifts for our loved ones, but 275,000 tonnes of them are set to go unused,” says Nina Gbor, director of the waste and circular economy program at the Australia Institute. She adds that nearly half of us would rather not receive presents at all, suggesting it's time to shake up Christmas spending habits. “Gifting experiences, homemade presents, gift cards or…

Who hasn't agonised over which financial product or strategy to use when making an investment decision? Critics put that down to a lack of financial literacy, but that can ring hollow when you consider the complexities involved and the risks of getting things wrong. The stakes are high when making major financial decisions: markets change, products change, regulations change, as does tax. Keeping abreast of it is challenging no matter how financially literate you are, and getting professional advice may be the answer. A study comparing the experience of advised clients versus unadvised clients found those who work with an adviser fare far better. When asked how a financial adviser helped them, the top three reasons they gave were: reducing financial stress and worries; help getting the most out of…

WELCOME BEST OF THE BEST 2025 THERE ARE NO shortcuts to financial success, only the courage to make big, bold and smart decisions. That's the key takeaway for me as we put together the latest issue of Best of the Best, our year-round catalogue of the financial products and services that could transform your finances in ways you may not have imagined. If you are a long-time subscriber picking up this issue, you will see some repeat appearances from previous winners, which we hope helps vindicate the choices you've made in the past. Where the rankings have changed based on performance and fees, that is the way of the competitive market and we expect some jostling and haggling on the way to the top. But there are still wide margins between…

VIRGIN MILLIONAIRE Want to be a millionaire? For most of us, the answer is probably yes. Yet the first $1 million is always the hardest to make. Virgin Millionaire, a new book by the Australian financial adviser and best-selling author Ben Nash, tells you how to get there. It provides a step-by-step guide to your first $1 million and beyond. See page 14 to enter our giveaway for your chance to win a copy of this book. FIND A PLANNER Looking for the right financial planner? The Financial Advice Association Australia has upgraded its 'Find a Planner' platform to help you. You can now filter by credentials, specialties, languages, gender and experience and even use a keyword search to find the perfect match for your needs. Go to faaa.au and…

GOLD WINNER SG HISCOCK & COMPANY Retail investors can plug into the benefits of investing in carefully selected global real estate. Global property funds enable retail investors to participate in the income and capital growth available from investing in worldwide real estate assets that would otherwise be well outside their reach. The SG Hiscock & Company's SGH LaSalle Concentrated Global Property Fund has a highly concentrated, actively managed portfolio, says Matt Sgrizzi, chief investment officer at LaSalle Investment Management and the fund's portfolio manager. SG Hiscock & Company is the fund's overall investment manager. The fund pursues global investment opportunities with the most compelling valuations, including companies that may offer such dynamics as deep value, market dislocation, identifiable catalysts and/or underappreciated growth prospects. It has an actively managed portfolio of…

GOLD WINNER ALTIUS ASSET MANAGEMENT Fixed interest suits investors who want to diversify part of their portfolio away from riskier assets. The Altius Sustainable Bond Fund, now part of Australian Ethical, specialises in sustainable cash and fixed-interest strategies, utilising its comprehensive environment, social and governance (ESG) framework, says Altius co-founder Bill Bovingdon. “Altius are known as leaders in responsible investment, as recognised by the Responsible Investment Association Australasia. We have a track record of consistently providing outstanding risk-adjusted returns in this strategy.” “Our team of highly experienced investment professionals is augmented by the scale, expertise and focus on purpose-led investment provided by Australian Ethical.” The fund is a diversified portfolio of high credit quality cash and interest-bearing securities all invested in line with Australian Ethical's ethical charter and Altius's due…

GOLD WINNER JANUS HENDERSON INVESTORS AUSTRALIA The middle ground between equities and cash delivers an attractive income for investors. Investing in credit can help balance portfolio risk, as debt investments can be used as defensive assets to protect a portfolio against inflation and market volatility. The Janus Henderson Diversified Credit Fund provides this while providing higher income. It has returned an average 4.49%pa since inception in October 2012, 2.52%pa above its benchmark, the Bloomberg AusBond Bank Bill Index. “We like to think of credit as happily occupying the middle ground for investors,” says Shan Kwee, portfolio manager on the Australian fixed-interest team at Janus Henderson Investors. “Akin to a breakwater, credit investing sits in between the rough currents of more volatile equities and more defensive cash and traditional fixed-income markets.…

GOLD WINNER VANGUARD AUSTRALIA Low cost and diversification, as well as easy access, continue to fuel the ETF boom. More than 1.5 million Australians, or roughly 20% of all on-exchange investors in the country, held at least one exchange traded fund in their portfolio in 2023, according to the Australian Stock Exchange's latest Australian Investor Study. It's a type of investment that only appears to be getting more popular in Australia as the years go by, but one provider that has been there from the very beginning is this year's Best ETF Manager award winner, Vanguard Australia. “Vanguard pioneered index funds nearly 50 years ago, which later became the launching pad for the global ETF industry,” says Adam DeSanctis, Vanguard's head of ETF capital markets for the Asia-Pacific region. “Our…

GOLD WINNER GQG PARTNERS (AUSTRALIA) There are plenty of opportunities to be found in emerging markets – if you know where to look. Many Australian investors who are seeking international exposure in their portfolios will already be familiar with the companies and markets in the US and Europe, but there's also a world of opportunity elsewhere. “Today, the investable universe in emerging markets is bigger than ever,” says Laird Abernethy, managing director of GQG Partners in Australia and New Zealand. “Since launching GQG in 2016, the number of stocks in emerging markets with market capitalisations greater than $US10 billion ($15 billion) has doubled. Gross domestic product in emerging and developing economies is on the rise and is expected to continue to outpace advanced economies as we move into the back…

GOLD WINNER FRANKLIN TEMPLETON Investors no longer need to compromise their returns to make a positive difference in the world. Amid ongoing global anti-ESG sentiment flowing out of the US, many investors are still hunting for a way to capture long-term performance of the market while avoiding 'sin'. The Global Responsible Investment Fund managed by Franklin Templeton is a core-style global equity strategy aiming to outperform the MSCI ESG Leaders Index after fees over rolling three-year periods. It's a managed active portfolio of ethically screened, globally listed companies, as well as cash, derivatives and unlisted securities. The fund's investment approach “seeks attractively valued companies that also embody good and improving environmental, social, and governance practices with the aim of delivering better long-term returns,” says Subash Pillai, head of investment solutions,…

GOLD WINNER PLATO INVESTMENT MANAGEMENT A hands-on strategy designed to maximise income has delivered impressive results. The goal for many investors, in particular those who are entering retirement, is to generate an income stream from their investments. For Don Hamson, managing director at Plato Investment Management, a good equity income fund should be able to deliver both long-term capital growth and a steady income source. “In addition, Australian equity income funds have the added benefit of delivering franking credits to investors on top of dividend payouts,” he says. “Our fund is designed specifically for retirees and low-tax investors who can take advantage of the tax-effectiveness of fully franked dividends and special dividends – a great source of additional income, or the icing on the cake as we say at Plato.”…

GOLD WINNER VISION SUPER A core tenet that diversification is an important tool for risk reduction helps buoy this top performer. A grounding in real-world understandings guides Vision Super's investment beliefs and decisions, which are summarised in 10 core beliefs. One of these key principles is using diversification as an important source of risk reduction, as a broad mix of asset classes is one of the fund's key strategies. This philosophy shines through in its balanced option. Deploying investment strategies typically involves balancing potential returns from chosen investments with the risks associated with them. Vision Super allocates its money to a wide range of assets in order to manage the risks, which includes reducing volatility. “We offer a menu of investment choices at Vision Super, and our balanced option plays…

GOLD WINNER UNISUPER The mixture of ethical principles, investment performance and ultra-low fees can buoy sustainable and financial returns. Members can have their cake and eat it, too, when it comes to investing that is guided by ethical principles and aligns to their values. With about $8 billion in assets under management, this year's winner, UniSuper, has achieved its financial returns as well as its environmental, social, and governance (ESG) objectives. The majority of members' money is allocated to international shares (56%) and Australian shares (38%). About 6% is invested in infrastructure and private equity. The US is a top region for investments, as nearly 41% of companies in the portfolio operate there. About 40% are listed in Australia. Some local holdings are CSL, Commonwealth Bank, Goodman Group, Cleanaway Waste…

GOLD WINNER AUSTRALIANSUPER A portfolio of high-quality, well-managed companies adds local flavour and solid returns to retirement savings. Aussies are bucking a long-term trend and becoming more engaged with their super, according to recent research by our winner, AustralianSuper. Shane Hancock, head of member products, guidance and advice at AustralianSuper, says there are a number of factors driving the rise in member interest. “Improvements in digital services have enabled members to check their super and make adjustments with just a few taps on their phone using the app,” he says. “Digital planning tools like our super projection calculator also allow people to see if they are on track for the retirement they want. The super system is working well, and Australians love to see their balances grow, so when the…

GOLD WINNER BRIGHTER SUPER Cash may be king for investors who have a low appetite for volatility and risk. One of the advantages of our super system is that most Australians can choose how their nest egg is invested – and cash can play a valuable role. Jennifer McSpadden, head of retirement at Brighter Super, says cash may be a suitable investment for members who have a low risk appetite. “The advantage of this option is that it is not subject to market movements,” she says. “The disadvantage is the return is low and may not keep pace with inflation.” She adds that a younger member may choose higher-risk strategies such as a growth option that aims to generate higher returns over the longer term. The downside is that savings…

GOLD WINNER MINE SUPER Higher returns come with higher risk, but this year global shares have achieved outstanding results. We all enjoy seeing the value of our super soar, pushed upwards by high returns – and on this score, the past 12 months have seen international shares shine. For context, Aussie shares (as measured by the S&P/ASX 200) rose in value by more than 8% in the 10 months to late October. However, global shares lapped this result, notching up a gain of 17.42%. So, it's no surprise that a global shares investment option takes out the award for the highest performer. The downside of global equities is the potential for volatility. While in some years global equities deliver tremendous results, other years can be shockers. Reflecting this, Vasyl Nair,…

GOLD WINNER COLONIAL FIRST STATE An actively managed, diversified property fund could suit investors looking for income and growth. Launched in 2002, this Colonial First State offering is one of the longest standing property securities funds in the market. It is among only a handful of local funds that are actively managed, take a multi-manager approach and are dedicated to listed Australian property securities. Most of its peers are passive index, unlisted property or global property funds. The fund delivered a strong absolute return over the past year, taking part in the recovery of the property sector since the pandemic. It has also benefited from interest rate rises, while unlisted property funds continue to work through lagged valuation write-downs. Colonial First State says the fund will continue to provide liquidity…

GOLD WINNER REST SUPER An indexed-based investment in a mix of growth and defensive assets provides a strong, steady return. For people who want a low-cost, indexed-based investment coupled with a more aggressive approach, the Balanced – Indexed investment option from Rest Super hits the mark. As this product is invested mainly in growth assets, which are predominantly overseas and Australian shares, it has the potential to generate higher returns but has also increased risks of negative returns over the short term. With sharemarkets on the rise, the Rest Pension Balanced – Indexed is a strong performer, having returned 19.90% in the 12 months to September 30, 2024. It produced an average return of 8.41%pa in the five years to September 30, 2024. Rest offers two other low-cost indexed-based options,…

GOLD WINNER MERCER SUPER TRUST The growth in global equity markets has underpinned another year of strong returns. The Passive International Shares option from Mercer gives members exposure to global equity markets through a competitive investment option. “Our members have benefited from the strength we have seen in the global equity markets over the past decade,” says Claire Ross, Mercer Super's chief executive officer. “In particular, over the past year our members have been able to capture the growth of a diversified group of global listed companies across a range of regions and sectors, including technology and healthcare.” Mercer's emphasis is on keeping fees competitive and delivering value. “But it's also about building resilience and capability, which is often not apparent to the external eye,” says Ross. “Much of our…

GOLD WINNER NGS SUPER At a time of geopolitical turmoil and market volatility, this investment can provide retirees a safe haven. The Income Stream – Cash and Term Deposits option from NGS Super is crafted for retirees and those nearing retirement who want peace of mind and the tools to manage the risks associated with their portfolios. It invests in bank term deposits and at-call cash and is targeted at retail investors who want consistent returns as well as short-term capital security. It is designed to achieve a net return that equals or beats the Reserve Bank cash rate. “What sets the NGS Income Stream – Cash and Term Deposits option apart is our unwavering commitment to safeguarding our members' interests and financial independence,” says Natalie Previtera, NGS Super CEO.…

GOLD WINNER AWARE SUPER A lifecycle strategy, which adapts the investment mix, protects savings and reduces longevity risk. For the second year in a row Aware Super has won the Ultra Long-Term Performance award for its Employer Sponsored high-growth option. “Our investment approach in our MySuper Lifecycle approach, of which the Employer Sponsored high-growth option is a part, is a great example of how we stand out and deliver ultra long-term performance,” says Damian Graham, Aware Super's chief investment officer. Actively managing the level of investment risk for members as they age is key to this approach. “At Aware Super, we understand that delivering strong long-term returns requires a different investment mix for younger members compared to those approaching retirement. This informs our innovative lifecycle approach,” says Graham. “For our…

GOLD WINNER HOSTPLUS A new easy-to-use education and advice tool is helping members engage more fully with their super. Super education has been taken to a new level with the launch of SuperSmart by Hostplus. The digital tool, exclusive to Hostplus members, is aimed at helping them make better plans for retirement. SuperSmart is a user-friendly, fully integrated, self-guided platform. It is integrated with Hostplus's data registry and uses a member's profile to pre-populate fields. In this way, the education and advice content can be personalised for each member. “With SuperSmart, members can engage with bite-sized educational modules that offer self-paced, tailored learning in a fun and interactive way,” says Maurizio Lombardi, head of financial planning and advice at Hostplus. The platform is packed with intuitive features, including an interactive…

GOLD WINNER BUDGET DIRECT Premiums keep rising, but savvy shoppers know to look around to find a good deal. If you were to create a Venn diagram with the word 'value' in one circle and 'comprehensive car insurance' in the other, it wouldn't be a surprise to find Budget Direct in the middle. After all, not only has Budget Direct been recognised for Best-Value Car Insurance for 2025, it has secured first place in this category for the past seven years – a notable achievement. Budget Direct finished ahead of AAMI and ING to claim top spot. In large part that came down to the fact that, on average, its premiums ranked as the lowest on offer across the vehicles and locations analysed for the award. The focus wasn't just…

DELAYED REACTION Shopping has changed. With just the tap of a card or a few clicks, you can go from thinking of buying to actually buying in seconds. Payments are frictionless – and that's bad news for impulsive shoppers. Thankfully, the digital bank Up has put in a new safeguard: a three-hour hold on your savings account. Go to up.com.au. HOME LOAN CALCULATOR There's a reason why 6-in-1 bodywash is popular – it's just easier. UNO's 6-in-1 home loan calculator, Plan, combines six tools into one, using open banking to streamline the process. It integrates borrowing power, stamp duty, LMI, mortgage search, LVR and repayments, plus live pricing data from more than 25 lenders. Go to unohomeloans.com.au. FIND A BROKER If you want to connect with a reputable mortgage broker,…

Would you hand over $100 each month for access to unlimited haircuts? That was a question posed by a friend a few months ago after finding out that his barber was offering a subscription service for customers who were particularly keen on keeping their cuts fresh. For some, that might seem like an excessive amount of money to spend on haircuts, but given the popularity of subscriptions in other parts of life, perhaps not. Take streaming services, for one. There were 25 million subscriptions to video-on-demand in June 2024, according to the Telsyte Australian Subscription Entertainment Study. Away from the popular video and music services, it feels as though every business under the sun is moving towards a subscription model. In addition to haircuts, it's now possible to access everything…

BOOK OF THE MONTH VIRGIN MILLIONAIRE by Ben Nash (Wiley, RRP $34.95) Do you want to be a millionaire? If you're like many cash-strapped Australians, the answer is likely to be 'yes'. This book guides you through author Ben Nash's unique yet surprisingly simple strategy to grow your money in small, manageable steps and set up your ideal lifestyle without making drastic sacrifices to the way you live today. Outlining the five smart money stages in your journey to financial independence, Virgin Millionaire provides actionable strategies for money and investing success, no matter what stage you're at right now. Ten readers can win a copy. In 25 words or less, tell us what your 'ideal lifestyle' would be. Enter online at moneymag.com.au/win or send entries to Money, Level 7, 55…

Household inflation is on the retreat, with the latest quarterly Consumer Price Index release from the Australian Bureau of Statistics showing that headline inflation rose by 2.8% in the 12 months to October – down from 5.4% the previous year. Some prices are still rising at a decent clip, but the increases haven't been as large as in previous quarters and they have been offset by large drops in the price of fuel and electricity in recent months. The proof isn't just in the data. It appears that shoppers are starting to feel a difference at the checkout when paying for goods and services. The latest consumer sentiment survey conducted by NAB revealed that cost-of-living concerns have eased to their lowest point since the start of 2022. High costs are…

The value of Australia's property market has reached a record high, with residential real estate now valued at $11.1 trillion, according to CoreLogic. This is more than superannuation ($3.9 trillion), the stockmarket ($2.3 trillion) and commercial real estate ($1.2 trillion) combined. To put this in perspective, the US property market is set to reach a value of $6.6 trillion by 2032. Housing now accounts for 56.3% of household assets, making it the cornerstone of wealth. This boom has been steady and dramatic over the years. Since 2009, the value of Australian housing has surged by 192%, from $3.8 trillion to today's record – a trend driven by rising prices and high demand. However, this wealth comes with a cost. As property values soar, nearing a mean of $1 million, so…

Megan has $40k in her offset account and is keen to build more wealth. Q I'm a 40-year-old single mum on about $125,000pa and own a two-bedroom unit ($450,000 mortgage at 6.1%). My job is pretty secure and I have a decent amount in super. I have just started investing and have about $10,000 in shares. I also have $40,000 in an offset account. I'm confused about whether it's smarter to invest more in shares in the hope of building some wealth over the next 10 years to be able to buy a bigger place or keep that money in offset. Any tips, please? I can give you some solid tips, Megan, but I cannot guarantee investment returns, sadly. You are paying about 6% on your mortgage. If you add to…

Something I find incredibly positive, Trish, is the number of questions I get about helping kids plan for their future and teaching them the key rules of money. A few decades ago, I rarely got a question about this, but today it is one of the most common. Giving kids a helping hand for the future, but also equipping them with the skills they need to navigate the complex world of money, is just critical. I also had a powerful and positive money experience because of the actions of my parents when I was a youngster. It was quite an unusual thing to do back in the 1960s, but they bought small quantities of shares for me and my sister. As time goes by, compound returns do the work and…

Materials that go into the production of electric vehicles (EVs) include critical minerals such as lithium, manganese, cobalt, nickel, graphite, copper and rare earths. While rare earths are used for the electric motor, most of the materials are used in producing the batteries. Coming off their highs in 2023, most of these critical minerals have seen their prices experience a material de-rating in 2024. There are commodity-specific issues, but there was also a moderation in EV sales growth. • Nickel has several uses apart from EVs and makes up about 16% of an average EV battery. The price has come under pressure as a result of oversupply from Indonesia. Its government has promoted mining and domestic refining of the metal in the past decade, resulting in a material increase to…

SECTOR INCOME STOCKS While much attention is rightly directed to the impact of changing interest rates on mortgage holders, we often neglect to remember that the other side of that story is the return for savers. After all, deposits (and wholesale funds from Australia and around the world) are the 'inventory' our banks use to make those home and business loans. And the interest earned on those deposits is a key part of many retirement income streams. Those income streams have been much better in the past couple of years than they have been for more than a decade. They're not the only way to turn a nest egg into an income stream, though. Nor the most tax effective. The other three major sources of investment-derived cash are bond yields,…

GOLD WINNER MACQUARIE ASSET MANAGEMENT Extensive research plus careful risk management combine to produce superior results. Having won this award in 2024, Macquarie Asset Management returns to the top of the podium once again. When it comes to investment managers, Macquarie is a goliath of the industry with around $938.3 billion in assets under management globally. It is active in a variety of sectors, ranging from renewables and infrastructure to technology, resources, commodities and energy. Along with an extensive menu of unlisted managed funds, Macquarie offers a range of exchange traded funds (ETFs), including the Macquarie Core Australian Equity Active ETF (ASX: MQAE) as well as several fixed-income ETFs plus global shares ETFs. Unlike many ETFs, Macquarie's versions are actively rather than passively managed. This means it aims to outperform market…

GOLD WINNER CLEARBRIDGE INVESTMENTS Infrastructure is a key player in building a sustainable future, generating stable income for investors. Infrastructure makes the world go round – think roads, railways, bridges, airports, public transit systems, tunnels, water supply, sewers, electrical grids, schools, hospitals and telecommunications for a start. The ClearBridge RARE Infrastructure Value Fund – Unhedged has built its strategy on recognising the long-term opportunities that infrastructure investing presents, says portfolio manager Shane Hurst. “Investors worldwide are seeing the benefits of a dedicated portfolio of listed infrastructure companies, which can offer stable, growing income, inflation protection and diversification from other asset classes.” Infrastructure is at the forefront of global megatrends, such as the green energy transition, climate adaptation and digital transformation, which includes the AI revolution, says Hurst. “These trends are…

GOLD WINNER FAIRLIGHT ASSET MANAGEMENT Beyond the ASX there's a big world of promising, if little-known, companies. While Australians have long felt comfortable investing in the local small-cap market, the Fairlight Global Small & Mid Cap Fund provides the opportunity to invest in some of the world's best businesses that are not household names, says Nicholas Cregan, portfolio manager and Fairlight partner. “These businesses are of high quality and often trading at steep valuation discounts to their Australian counterparts,” says Cregan, who believes smaller companies are worthy of consideration. “After all, Microsoft was a small company once.” Fairlight was established in 2018 based on the unique experience of the founders within the global small and mid-cap (SMID) market. “At the time, many Australians had significant home bias to domestic equities…

GOLD WINNER METRICS CREDIT PARTNERS The corporate loan market can provide investors with strong risk-adjusted returns. The potential for superior risk-adjusted returns and regular income from an asset class that has a low correlation to both bonds and equities are the attractions of investing in corporate loans. Winner of this category the Wholesale Investments Trust managed by Metrics Credit Partners offers investors direct exposure to the Australian corporate loan market, which has provided reliable monthly cash income, low risk of capital loss and individual asset diversification. “Outside of the banks, Metrics has one of the largest direct loan origination networks in the Australian market,” says Andrew Lockhart, managing partner at Metrics. “Its relationships, size and scale give it access to the best pipeline of opportunities, allowing Metrics to choose the…

GOLD WINNER BETASHARES The prospect of attractive dividends and returns continues to draw investors to Australian companies. A sizeable chunk of Australian investors continues to see value in Australian companies, with the results from the ASX's most recent Australian Investor Survey indicating that 58% of them hold local shares and 20% hold ETFs. Louis Crous, chief investment officer at Betashares, says that even with extensive access to global markets, many Australian investors still choose to prioritise local equities – a growing number of whom are using ETFs to get that exposure. “The broader Australian market is characterised by larger and more mature companies that return attractive levels of dividends and associated franking credits, and as a result the Australian market is one of the highest-yielding developed markets in the word.…

GOLD WINNER U ETHICAL INVESTORS Investors and the environment benefit from a long-term 'mission to give back'. Despite taking a beating from economic headwinds and negative investor sentiment, U Ethical Investors proves ESG-focused strategies can still deliver impressive returns. Founded in 1985, Australia's oldest ethical investor has learned from decades of experience that it's all about sound stock selection. U Ethical has now taken home the top prize for the third consecutive year. “Our organisation is driven by a mission to give back – to our investors, to the environment, to communities and to future generations,” says Erica Hall, director of strategy and distribution at U Ethical. “Our formula is simple yet powerful: the better we are at investing, the more good we can do, because the profit we generate…

GOLD WINNER MACQUARIE ASSET MANAGEMENT Investors are looking further afield – beyond local banks and miners – to find world-class opportunities. Aussie investors are embracing the world. “Global equity investments have been growing within Australian investor portfolios,” says Ben Leung, head of Macquarie Systematic Investments at Macquarie Asset Management. He notes that this is a reflection of the greater opportunities available across international equity markets. “Despite often turbulent geopolitics, global equity allocations can provide much more opportunities than the narrower set offered by the Australian equity market, which is dominated by the financials and materials sectors,” says Leung. “To put this into perspective, Australia's entire equity market weight within the MSCI World Index is less than 2%. In contrast, Arrowstreet's global equity portfolio can access a much more diverse set…

GOLD WINNER MLC ASSET MANAGEMENT Multi-asset funds can respond to shorter-term market dynamics to enhance returns. By diversifying across different asset classes and being professionally managed, multi-asset balanced funds can effectively mitigate risks while aiming for higher returns. This makes them an attractive choice for both new and experienced investors looking to enhance their financial stability and growth. The MLC MultiActive Balanced Fund, winner of this award, “combines a strategic asset allocation – based on expected long-term asset class returns - with a dynamic asset-allocation process in which its investment team pivots in response to shorter-term dynamics when markets may diverge from fair value”, says Dan Farmer, MLC's chief investment officer. It's part of a suite of diversified portfolios across the risk-return spectrum leveraging MLC's heritage as a pioneer in…

INVESTING APP Trading platform eToro plans to enter the superannuation sector after acquiring Spaceship, an Aussie micro-investing app, in September. The deal will give eToro users access to Spaceship's super offering, GrowthX, which had an 11% annualised performance between January 4, 2017, and August 31, 2024. RISK PROFILER What type of investor are you? When it comes to investing through superannuation, you have choices. In just a few minutes, AustralianSuper's investor risk profiler could help you work out the type of investor you are, so you can be better guided when making investment decisions. HEALTH CHECK You (hopefully) regularly check your health with your GP. So why not do the same for your super, which is likely to be one of your biggest assets. Yet many people don't think about…

INVESTING SUPERANNUATION YOU HAVE TO hand it to UniSuper. This is the third consecutive year it has taken out this award. What is it doing differently from its competitors? “Retirement is in UniSuper's DNA,” says UniSuper CEO Peter Chun. “Our mission for over 40 years has been to provide great retirement outcomes for our members. We're constantly raising the bar on ourselves, asking 'what can we do better?' to serve our members. “At UniSuper, this is a mindset that everyone at every level of the organisation is asked to embody every day. And, like super itself, regular contributions over time compound to have a big impact.” This has seen UniSuper's approach defined by personalisation. “We believe in empowering members with information and supporting them with advice to really personalise what…

GOLD WINNER MLC SUPER FUND Achieving above-benchmark returns was made possible by an actively managed, extensively diversified geared portfolio. Being overweight to unhedged global shares combined with the active management of Australian and global shares has led to stellar returns over one-, three-, five-, and 10-year periods for MLC Super Fund. Its growth option is a long-only, geared multi-manager product with exposure to a wide range of asset classes. It has followed through on its goal of delivering risk-adjusted returns for members through a challenging market. About half of the pie is invested in Australian shares. Some 67% is committed to global shares, 3% each in infrastructure and property while 7% is in private equity. It targets an allocation of a 128%/2% split across growth and defensive assets, with 30%…

GOLD WINNER MINE SUPER Investing in some of the world's greatest companies can supercharge savings and provide all-important diversification. There's a lot to love about international shares when it comes to growing long-term retirement savings. As with many super funds, Mine Super offers its members a variety of investment choices. They include single asset class options, such as international shares, which offer members a way to invest in line with their views and goals. Broadly speaking, 'international shares' covers both developed and emerging markets. However, Vasyl Nair, chief executive of Mine Super, says the fund's international shares option is invested solely in developed markets, with about 70% in US equities. “The Mine Super investment team retained high conviction in developed markets and had a strong position in 'the magnificent seven',”…

GOLD WINNER HOSTPLUS A bias toward growth assets and heavy diversification deliver top results in the long term. It is the long-term results that truly matter, as superannuation is a marathon, not a sprint. The ability of Hostplus to deliver strong and consistent performance for members over the long haul once again puts the option at the top of the ladder. The option tilts in favour of growth assets, with a 76% allocation and 24% in defensive assets. The bias toward growth means the core pre-mixed option is designed for members with a medium- to long-term investment timeframe. Some 21% is invested in listed Australian equities and 22% in international developed market equities, while 7% is allocated to companies operating in emerging markets. Unlisted assets have helped weather some of…

GOLD WINNER MINE SUPER There are big benefits for younger people who engage with super early in their lives. Engaging younger workers with their super is no easy task. After all, for a member aged in their 20s, it could be four decades or more before they can access their savings. Mine Super is taking a fresh approach, delivering value to younger members in a range of ways, including positive investment performance, low fees and personalised service. “One of the core service features offered by Mine Super is our boots on the ground approach at work sites across Australia,” says Vasyl Nair, chief executive officer of Mine Super. “Every year we interact with thousands of members, many of whom are just starting out in their working career.” Nair says that…

GOLD WINNER AUSTRALIAN FOOD SUPER Flexible investment options and a track record of strong returns underpin a tax-free income stream. Formerly known as AMIST Super, Australian Food Super is an open fund that provides superannuation, insurance and retirement products to people employed in food production. Its account-based pension allows members to draw a regular tax-free income. Members pay a competitive fee of $363.40 a year, assuming a $50,000 account balance fully invested in Australian Food Super's MySuper option. The fund has a 10-year average return of 7.34% as at June 30, 2024 against a return target over rolling 10-year periods of 3%pa above inflation, after fees and taxes. “This product allows members to transfer part of the balance from their superannuation accumulation fund to receive tax-free investment returns by staying…

GOLD WINNER MERCER SUPER TRUST A low-cost, indexed exposure to international equities is suitable as a core holding in a portfolio. The Passive International Shares option allows Mercer Super members to invest in thousands of listed companies around the world in one affordable product. “It provides our members with a competitive option to get exposure to a broad and diverse range of shares across regions and sectors,” says Claire Ross, Mercer Super's CEO. At the time of writing, its exposures included Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Eli Lilly, Meta, Microsoft, Nvidia and Tesla. It has a 75% allocation to North America, 14.5% to Europe, with the remainder of the portfolio split across assets in Asia, the UK, the Middle East and Africa. The Mercer Passive International Shares option is…

GOLD WINNER COLONIAL FIRST STATE A range of investment options, supported by low fees, allows retirees to take charge of their income. The FirstChoice Wholesale Pension provides a wide range of opportunities in major and niche investment classes. This option can be a suitable option for people who want exposure to a portfolio of listed Australian property securities. Colonial First State has appointed First Sentier Investors to actively manage the portfolio, giving it a strong and stable team with a long track record. This retirement income solution offers a diverse range of investment strategies and low fees. This allows members to tailor their retirement income strategy to meet their specific goals. The FirstChoice platform offers more than 180 investment options from more than 70 global fund managers, providing a wide…

GOLD WINNER AUSTRALIANSUPER A focus on growth helps cost-conscious investors build a substantial retirement savings pool. The AustralianSuper Indexed Diversified product is a well-rounded investment option designed for people seeking a balanced approach to their retirement savings. It offers a diversified portfolio that aims to provide medium- to long-term growth while managing short-term fluctuations. The Indexed Diversified option invests across various asset classes, including Australian and international shares, fixed interest and cash. The allocation ranges from 20% to 50% for Australian and international shares, 0% to 50% for fixed interest and 0% to 15% for cash. The primary objective of the Indexed Diversified option is to achieve a return of CPI plus 3% a year over the medium to longer term. This focus on growth assets helps to build a…

GOLD WINNER VISION SUPER Keeping fees as low as possible without compromising performance and service has paid off again. Putting members first truly pays off because it means they are more than just a number. One way in which Vision Super does this is by keeping fees competitive and providing a low-cost solution. Members pay a low dollar-based administration fee plus a percentage-based administration fee subject to an annual cap. Members who join the Personal Plan will be invested in the Balanced low-cost option. They also have access to 10 other investment options: growth, balanced growth, balanced, conservative, Just Shares, Innovation and Disruption, Australian equities, international equities, diversified bonds and cash. Vision Super CEO Michael Wyrsch says the Balanced low-cost option has performed well in the current market conditions. “Some…

GOLD WINNER COMMONWEALTH SUPERANNUATION CORPORATION Matching personal circumstances with income options means more informed decisions. For Australians who reach retirement, it can seem as though growing super is the easy part. Once we give up work, a rather confusing array of product and investment options can be available to help our savings generate what will hopefully be a healthy long-term income. The hard part can be knowing what strategy will meet your needs. Commonwealth Superannuation Corporation (CSC) is taking the guesswork out of retirement incomes by developing customer retirement profiles that link personal circumstances to products. CSC is dedicated to members of the Commonwealth Public Service and Australian Defence Force. So, while its customer retirement profiles may not be available to all Australians, CSC is setting a new benchmark for…

GOLD WINNER BUDGET DIRECT Competitive premiums are supported by inclusions that provide homeowners with extra protection. For many Australians, safeguarding their valuables and home is non-negotiable. But the reality is that households have been feeling the pressure of rising insurance costs, with data from the Australian Bureau of Statistics indicating that insurance prices rose 12% in the 12 months to October. That's why finding an insurance provider offering real value for money on home and contents insurance will be even more pressing for some consumers at the moment. Enter Budget Direct. For the fourth year in a row, it has taken out the award in this category, finishing ahead of Virgin and Coles. Helping Budget Direct to the top of the podium yet again was the fact that, on average,…

MATT CAMPBELL Motoring expert Keyless entry for cars! Arms full? Just walk up and open the door without having to fumble for a key. Some new cars can even sense the key nearby and unlock the doors automatically. An electric boot with auto opening is another winner. I've been testing cars for 16 years (almost four of those as a dad) and I have plenty of thoughts on what makes some cars better than their rivals – that's why I called my YouTube channel The Right Car? Read Matt's Best of the Best cars on page 144. ANN LOVEDAY Art director It never crossed my mind that there were household tasks I could sub out to professionals rather than wrestle in my free time. Perhaps it's stealth luxury to pay…

Have you put legal protections in place to safeguard yourself and your loved ones should you be impacted by dementia? It is sobering to read that dementia, including Alzheimer's disease, is poised to overtake heart disease as Australia's leading cause of death. As these neurological conditions affect more people, it's time for Australians to rethink how they approach their wills and legal preparations. It's never too early to think about who you trust to make critical decisions for you if you're no longer able to do so yourself. Start talking to friends and family and, once you have made a decision, have a qualified legal professional prepare three crucial documents: • A power of attorney appoints someone who can manage your financial and legal affairs while you are still alive…

Five things to do 1. Athens This teeming metropolis gets varying reactions; some say it's dirty, dingy and over-trafficked while others love it. We fall into the latter camp. It is extraordinary being in a frenetic city that blends such important history – you can see the Parthenon from almost anywhere – with an edgy, modern vibe. Athens never sleeps, so there's always something to do in the many laneways that house bars, cafes and bookshops – this place is a bibliophile's dream. 2. Exarcheia Ten minutes' walk from Syntagma Square (in the centre of town and overlooked by the house of parliament) in one direction and the famous National Archaeological Museum in the other, Exarcheia is a hotbed of student activity, nightlife and activism. It's graffiti-heavy with a thriving…

Families may be missing out on thousands of dollars in savings due to a little-known health insurance policy update that lets adult children stay on their parents' plan until they're 31, according Compare Club, an insurance comparison site. The Federal government introduced the changes in 2021, but many health funds have kept quiet about them. This means families could save an average of $1737 a year. With high costs squeezing budgets, this option provides a way to save money while maintaining essential health coverage for young adults. Families with multiple children can see even greater savings, Compare Club's analysis shows: • First child: $1010 saved yearly. • Second child: $3812 saved. • Third child: $5604 saved. • Fourth child: Up to $7000 saved yearly. These savings come at a time when…

MY MONEY SHOPPING The tree is up, the tinsel is sparkling and 'Santa stop here' signs are popping up on neighbourhood lawns. Yes, the countdown to Christmas has begun, only this year belts are tightening and the plum pudding isn't to blame. We unwrap ways to save as households juggle the peak spending period of the year with a cost-of-living crunch. Aussies are expected to drop $69.7 billion on Christmas purchases this year. And despite tightly stretched household budgets, it's estimated we'll spend an average of $660 each on festive gifts. It's a big chunk of cash, and this year consumers are shaking up festive spending with a planned approach that's seeing us shop sooner to snap up bargains. While the usual line-up of clothing, books and gift cards top…

The festive season can be the most expensive time of the year. There's pressure to spend and spend, and even the best savers and canny shoppers can strain their budgets. Last year, almost 8 million Australians emerged from the festive season with a debt hangover, according to the comparison site Finder. So, here's a survival lists of strategies to help you sail through without going into debt: 1 Forget busy restaurants in the lead-up to Christmas. Keep your costs down and catch up with friends and family at a cafe or have a picnic instead. 2 Get your kids on board about a low-cost Christmas. After all, the best gift you can give them is your time. Reassure them that there will be plenty of fun (turn off those screens).…

Should I buy a house or an apartment? This is a question that virtually all home buyers and investors face at some stage. The big plus of an apartment is that it usually comes with a far lower price tag, meaning it's less likely you'll be saddled with an astronomical mortgage. Indeed, the disparity between apartments (also called units in Australia) and house prices has widened in the wake of the Covid-19 pandemic. By March 2024, four years after the pandemic's onset, the median house price premium over apartments ballooned from 8.4% to an astonishing 32%, according to PropTrack (proptrack.com.au), part of the REA Group. In Sydney, this gap is even more pronounced, with houses costing nearly twice as much as units – a stark $710,000 difference. And recent research…

Ever seen the film This is England? A British film. Young kid, bullied at school, befriended by skinheads and transformed from lone loser to uniformed gang member in a day. It's a powerful example of the positives and negatives of gangs. Positives include: belonging to something, having friends, a set of rules to live by and no need to think for yourself. Negatives include: compromising your values to belong to a group, an inability to think outside the square and a loss of independence. It is the core tenet of all gangs and groupings. People pulled together by choice or circumstance to adopt a collective behaviour pattern under a common banner. Our groups define us and once we belong it is hard to challenge, change or exit them, to defy…

GOLD WINNER MLC ASSET MANAGEMENT Regular tax-advantaged income is a big drawcard for investing in Australian listed property. Australian real estate investment trusts (A-REITs) give investors the opportunity to invest in the property market without the challenges of direct property ownership. With steady income through dividends, diversification across property sectors and a strong regulatory framework, A-REITs are an attractive investment option. The MLC Wholesale Property Securities Fund is evidence of the company's bedrock belief in diversification, says Dan Farmer, its chief investment officer. “The investment industry often portrays issues in zerosum ways,” he says. “Think active versus passive, large versus small caps, liquid versus illiquid, growth versus value, and on it goes. As an investment manager founded on a bedrock belief in diversification, we reject such thinking and have always…

GOLD WINNER MACQUARIE ASSET MANAGEMENT Long-term investors can benefit from wide diversification and the power of compounding. Australians are keen sharemarket investors. More than 10 million own investments beyond their home and superannuation and for 7.7 million of us equities are the place to grow wealth. The catch, as an ASX investor report confirms, is that our enthusiasm for equities isn't matched by our portfolio diversification. Fewer than one in two (44%) investors believes they have a diversified portfolio. The Macquarie Australian Shares Fund solves the diversification challenge. This $697 million fund invests across a range of industries and sectors, with a focus on Australia's largest 200 listed companies. The fund is backed by an extensive track record, having first launched in 2005. Ben Leung, head of Macquarie systematic investments…

GOLD WINNER UBS ASSET MANAGEMENT (AUSTRALIA) Small and ignored stocks that are destined to grow can pay off in the long term. Microcap stocks – defined as those with a market capitalisation of less than $300 million – are often overlooked by serious investors. But the UBS Microcap Fund has shown that carefully chosen microcaps can pay off for investors. “We love being dedicated to an area of the market that is ignored by most,” says Joel Fleming, portfolio manager for the UBS Microcap Fund. “Our focus on the sub-$250 million market cap segment forces us to remain true-to-label microcap investors in what remains the most inefficient part of the ASX. “Small companies have consistently shown an ability to grow into larger sustainable businesses, providing strong returns to investors through…

GOLD WINNER LA TROBE FINANCIAL Mortgage assets have consistently delivered for investors in search of reliable income. The allure of higher returns, with the caveat of greater risk, won't be an appealing strategy for all investors. Sometimes a relatively stable source of income is exactly what they are looking for. For more than 20 years, La Trobe Financial has sought to deliver a stable income stream to its clients through its 12 Month Term Account - a private credit fund that taps into the investment opportunities presented by secured mortgage assets. La Trobe notes that since inception, investors in the fund haven't seen any loss of capital and all of its distributions have been made at advertised rates. This is no simple feat given the major episodes of volatility in…

GOLD WINNER BLACKROCK It's easy and relatively inexpensive to add truly global companies to your portfolio. There's a lot to be said for Australian shares, but when it comes down to it, the local market represents less than 2% of global capitalisation. It's hardly a surprise, then, that many Australians seek to diversify their holdings by looking abroad. James Waterworth, director for wealth distribution in Australia at BlackRock, says one way for an increasing number of investors to get exposure to international companies and markets is through ETFs. “As more and more Australian investors shift from individual security selection to holistic portfolio construction, ETFs have become the preferred investment tool to access a broad range of exposures in a cost-effective and efficient manner,” he says. Among the internationally focused ETF…

GOLD WINNER VANECK AUSTRALIA Assets such as bonds can help stabilise a portfolio and they're now easily accessible, thanks to ETFs. It's been a tough few years for fixed interest. After experiencing one of the worst periods in decades during the pandemic, the asset class won back investors who were searching for higher yields as central banks began lifting interest rates. Part of this rejuvenated interest has been evident in the billions of dollars that Australian investors have poured into fixed-income exchange traded funds (ETFs) over the past few years through providers such as VanEck Australia. “ETFs have truly democratised investing. Australian investors can now easily access almost every market, sector and investment style via an ETF on the ASX, and innovations in this space are not slowing.” Arian Neiron, chief…

GOLD WINNER MLC ASSET MANAGEMENT Extensive diversification from multi-managers enables investors to access returns from many sources. Multi-asset funds offer investors exposure to a broader range of assets, sectors, strategies and direct investment exposures with greater flexibility. They are diversified across both traditional and non-traditional asset classes, such as real estate and infrastructure. The goal is to provide the opportunity for growth while managing risk. “The MLC MultiActive Growth Fund leverages MLC's heritage as pioneers in multi-asset and multi-manager investing,” says MLC's CEO, Dan Farmer. It has won this year's award for Best Multi-Asset Growth Fund. “True to MLC's belief in diversification, the fund provides investors with exposure to many thousands of assets within asset classes, as well as diversification by geography. By doing this, the fund accesses returns from…

GOLD WINNER MLC ASSET MANAGEMENT The right mix of assets and risk can be crucial in providing 'all-seasons' returns. Not all investors have the risk tolerance or timeframe to adopt a higher-risk, higher-reward investment strategy. Sometimes preservation of capital and steady returns will be the aim of the game, in which case a capital stable fund could be the right fit. “There are investors who, because of their stage of life, circumstances, temperament or the size of their balances, want to put their capital into investment options with a roughly even balance between growth and defensive assets, such as the MLC MultiActive Moderate option,” says Dan Farmer, chief investment officer at MLC Asset Management. “Such investors want a smoother ride from their investments and that's what the MLC MultiActive Moderate…

INVESTING SUPERANNUATION WHEN IT COMES to superannuation, Australians are spoilt for choice with more than 100 funds to select from. And in this hotly contested award, Mine Super may not be the biggest or the best known, but it delivers on a range of metrics to help members achieve the best possible retirement – and that's what super is all about. Vasyl Nair, CEO of Mine Super, says this award “reflects the hard work and commitment from the Mine Super team, who continually work above and beyond to get the best outcomes for our members. This is why we come to work every day, and it is rewarding to see the work we do translate into helping our members achieve the retirement outcomes they deserve.” Over the past four years,…

GOLD WINNER HOSTPLUS A low-cost investment approach outpaces more expensive actively managed strategies. This year has been particularly favourable for passive investments, which have overshadowed actively managed strategies on many fronts. Our 2024 winner, Hostplus, continues to focus on minimising fees and costs by investing in growth assets with a medium level of diversification. The asset mix comprises 75% growth and 25% defensive. The bull market helped turbocharge the option's performance, thanks to its allocation to Australian shares of 35% and international shares of 40%. It also holds 20% in diversified fixed-interest strategies and 5% in cash. Mega-caps such as Nvidia, Apple, Alphabet and Microsoft, which are among the 'magnificent seven', are elevating the S&P 500 to record highs. The index has soared 35% in the past year alone, thanks…

GOLD WINNER MINE SUPER A strategy that shifts in response to a member's age balances risk and return to maximise their savings. If you're looking for a hassle-free super strategy, a lifecycle approach can tick plenty of boxes. “Our lifecycle product is our default investment option for all accumulation members who join the fund, so a majority (75%) of our accumulation members are invested in this product,” says Vasyl Nair, chief executive of Mine Super. He says Mine Super's Lifecycle product “supports our members in achieving strong retirement outcomes, as it invests members' money in a mix of growth and defensive assets that automatically changes as members enter key age-based stages. “The Lifecycle product exposes members to greater investment risk when they are younger to maximise returns but seeks to…

GOLD WINNER UNISUPER Fixed interest can play a valuable role in super, helping to reduce volatility yet still delivering decent returns. A menu of both pre-mixed investment options (such as 'conservative' or 'balanced') as well as single-sector choices gives UniSuper members an opportunity to personalise their portfolio in line with their views and goals. The Australian Income investment option is a single-sector strategy that aims to achieve returns (before fees and taxes) that exceed the Reserve Bank of Australia's cash rate by 1%pa over the suggested investment period of at least four years. David Colosimo, head of fixed interest at UniSuper, says fund members who select the Australian Income investment option can expect their super savings to be spread across a range of Australian fixed-interest instruments. These include corporate bonds,…

GOLD WINNER AUSTRALIAN ETHICAL RETAIL SUPERANNUATION Investments that align with 23 ethical principles are designed to benefit the planet as well as members' savings. Environmental, social and governance (ESG) issues are shaping the investment decisions of a growing number of Australians. “We continue to see Australians turning to, not away from, responsible investing,” says Maria Loyez, chief customer officer at Australian Ethical Investment. “It's a trend you can see across sectors as investors are seeking more transparency and alignment with their values – not only from super funds, but also banks, supermarkets, clothing retailers and personal care and hygiene products.” Research by the Responsible Investment Association Australasia (RIAA) shows 88% of investors want their super and other investments to be invested ethically, up from 83% in 2022. Loyez notes that…

GOLD WINNER VANGUARD AUSTRALIA A relative newcomer to superannuation has a razor-sharp focus on cutting fees. If you are a member of a MySuper fund, you're not alone. A total of $976 million is invested in MySuper – a simple style of fund that acts as a default option for people who don't choose their fund when starting a new job. Australians have a choice of 61 MySuper products, and if you're looking for value it's hard to go past Vanguard Super. While Vanguard Australia is probably best known for its range of exchange traded funds, it entered the super market in 2022 and offers members the savings of a low yearly fee of 0.56%. “Following a successful two years in the market, we're pleased to be able to start…

GOLD WINNER BRIGHTER SUPER Getting bigger has turned out better for a fund that is benefiting from economies of scale. The strong performance of the Brighter Super growth pension option follows a recent revamp of its investment team, with Mark Rider's appointment as chief investment officer in 2022 post its revamp. Rider was previously Christian Super's chief investment officer (CIO) after earlier being ANZ's CIO for wealth and private banking and advice. Brighter Super was rebranded in 2022, following the merger of LGIAsuper and Energy Super and the acquisition of a retail fund, Suncorp Super. This makes Brighter Super the fourth largest non-government financial institution in Queensland, based on funds under management. “We have a team of more than 40 super specialists delivering advice face-to-face and virtually. We also work…

GOLD WINNER UNISUPER Low fees help this strong performer provide great retirement outcomes for members. The Australian shares pension option from UniSuper has a record of delivering strong, long-term returns to members, with the product consistently ranking in the top quartile against similar funds over one, three, five and 10 years. The primary goal is to achieve returns that are at least 4%pa higher than inflation (CPI) over a suggested timeframe of seven years. This is designed to provide a real return above inflation, ensuring the purchasing power of the investment grows over time. Over the seven-year period ending June 2024, the option achieved a return of 11.08%, outperforming the target by 3.78%. The total investment fees and costs for this option are 0.57%, which is relatively low compared with…

GOLD WINNER UNISUPER Exposure to a wide range of fixed-interest products reduces volatility and provides a regular income. Previously called Diversified Credit Income, UniSuper's Australian Income option is designed for members who prefer exposure to a specific asset class and are less comfortable with significant fluctuations in the value of their investments. It can be a good choice for members who want a stable income stream with a high allocation to fixed-interest assets. The option is part of UniSuper's broader range of retirement products, offering flexibility and stability in income. With a significant portion of the portfolio allocated to fixed interest, it is designed to provide a steady income and reduce volatility. Members must have at least $25,000 in their superannuation balance to be eligible for the Australian Income pension…

GOLD WINNER QANTAS SUPER Investors who arrive at their 'destination' can enjoy the benefits of a portfolio balanced between growth and defensive assets. The Qantas Super Gateway Income Account – Glidepath option automatically adjusts a member's growth and risk profile over time, with strategies ranging from Take-off, to Altitude, to Cruising and finally Destination. The balanced portfolio of growth and defensive assets returned 7.3% to members for the year to June 30, 2024, against a benchmark of CPI plus 2.5% a year over five years. The account has a medium to high degree of risk, with an asset split of 40% equities, 30% fixed interest, 20% alternatives and 10% cash. It is for people with an investment timeframe of at least five years. In July, the Qantas Super trustee board…

GOLD WINNER ALLIANZ RETIRE+ FOR AGILE An income stream that blends growth with an annuity takes financial worry out of retirement. Retirees can enjoy their lifestyle and be less concerned about running out of funds, thanks to an innovative product from Allianz Retire+. Allianz Guaranteed Income for Life, also known as AGILE, is a new-era retirement income stream that was modelled on Allianz Life in the US and launched in Australia in 2023. It is unique in that it straddles both the accumulation and pension phases, blending a growth investment with an annuity. In this way, AGILE offers downside protection in the growth phase to protect an investor's capital and then generates a predictable income for the rest of their life while still providing the flexibility to manage sudden expenses.…