Just three MySuper funds made any money for members over the 2022 financial year as turmoil in equity and bond markets led to widespread losses across the $3.2 trillion sector.
But the portfolio manager said he wouldn’t apologise for exposing members to an asset class that helped them avoid sector-wide losses.“If we did things only for social good, but not for returns, we wouldn’t be number one,” he said. “We want returns, returns, returns. Infrastructure assets are typically monopolistic. You get paid every time a ship docks, a plane takes off. These are assets society needs to be civilised.
“Energy stocks went north and we benefited from that, whereas others who have chosen to exclude it from the main fund did not,” Mr Sicilia said. The SHe backed technology billionaireas an example of environmentally conscious investors ignoring calls to divest. “We have a socially responsible investing option. If you want to invest in [that option] you can do so, but what you can’t do is tell us what to put in the overall fund,” he said.
In contrast, major industry super funds such as Cbus and Aware Super have “reduced exposure” to fossil fuels – at least in their growth or high-growth funds – according to activist Market Forces. The nation’s fourth- and fifth-best performers, Legalsuper and Australian Retirement Trust, sustained losses of about 1 per cent, while Hesta and Telstra Super reported negative returns of 1.8 per cent but still made it into the top 10 for the year.SuperRatings executive director Kirby Rappell said the results showed that some super funds were unprepared for the bear market’s swift return, having enjoyed some blockbuster returns during the decade-long bull run in global sharemarkets.
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