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Wotherspoon Top Performer in 2019

Last year was a particularly good year for investment returns. The latest data from superannuation consultants Chant West shows growth-oriented super funds delivered an average 14.7% return in 2019.

They define a “growth fund” as one with 61 to 80% allocated to growth assets (largely related to shares, property and infrastructure). Many super funds market this asset mix as “balanced” (usually their flagship or ‘core’ fund) and Chant West also reports this asset mix is where most Australians are invested. We’ve written more about this in Compare the pear… apples and oranges.

All our Wotherspoon Wealth clients have individually tailored portfolios. In doing this for them, our advisers are guided by our ‘model portfolios’, also used to independently track our investment performance. The performance of these models are monitored and reported for us by investment research house, Lonsec.

Our ‘Balanced Growth’ model portfolio fits the Chant West definition of Growth Funds most closely. We are pleased to note that if compared with the top-performing funds Chant West measure, it would be 3rd in Australia for 2019 producing a return of 17.51%.

The top-performing growth fund over the year was UniSuper Balanced, returning 18.4%, while the worst recorded return in the growth category still topped double digits at 10.5 per cent.

The best and worst vary every year but according to Chant West the average “growth” fund return was 14.7% for 2019.

While good returns in one year are fantastic, what matters most is consistent returns over time.

With consistency in mind, the table below shows the Wotherspoon Wealth Balanced Growth Fund results against the average of ‘Growth’ funds for the same time periods:

This is encouraging as a necessary check on our company process, which seems to be working well… but it may also be reassuring for our clients.

Whilst not obvious from these figures, we’re also quietly satisfied because our portfolio design that underlies this performance is deliberately risk averse in its individual investment selection. When the inevitable market corrections occur, this attribute becomes more obvious – rather like the boats left high and dry as the tide recedes.

Some clients have a more conservative portfolio to reflect their comfort with risk. But in tailoring such portfolios, we utilise the same philosophy and similar asset choices in differing proportions.

If you would like to discuss your investment options with one of our wealth management professionals, get in touch with Wotherspoon Wealth today!

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Disclaimer: All information in this article is intended to be general in nature for discussion purposes only. So you should not rely on it and seek personalised professional advice before making any decision.