Hey guys,
I'd like to get some thoughts on changing my superannuation/retirement fund.
Currently 33 and I am with AustralianSuper in the High Growth option ($213,756) and contribute the $30,000/pa limit pre-tax. Earning $180k/pa pre-tax.
I should first clarify why I want to move.
1. I want to invest the same way I do in my brokerage account via low cost, global index funds (VTS/VEU)
2. Emphasis on low cost. Currently the high growth option is 0.50%.
3. I don't want to be subject to manager risk or any active management.
4. I don't want such a heavy weighting towards Australian shares.
5. I want a bond index fund available for a future bond tent strategy
6. Given the nature of my work, heavy blue collar, having insurance is hard to get so I need it.
Apart from insurance, AustralianSuper doesn't tick any of these boxes. I've had a look at Rest, Aware, HostPlus & ART and my verdict is leaning towards ART for a few reasons I'll state below.
ART
. International Index? MSCI ACWI ex-AUS (IMI)
. Unhedged? Yes & also hedged.
. Number of holdings? 2,702
. Fees? 0.09%
. AUS index? MSCI ASX
. Number of holdings? 300.
. Fees? 0.09%
. Bond index? Yes.
. Bond holdings? 50% Bloomberg Barclays Global Aggregate Index in $A hedged, and 50% Bloomberg AusBond Composite 0+Yr Index
. Fees? 0.08%
. Total$ Fees on $500k? $1,032/pa
. Insurance?
• $650k TPD = $763.65/pa
• $11k/month IP (2yrs, 90day wait) = $343.20/pa
This fund ticks all the boxes I'm after. If I can get insurance with them (they gave me a quote, meanwhile HostPlus wouldn't so fingers crossed), I can't see any reason not to move.
I would allocate my holdings to 80/20 (int/AUS) and begin my bond tent at age 50.
Am I missing something here? I see ART doesn't include carbon intense companies, is there any clarification on what these companies are exactly?
I chose this over the others because I don't like how rest removed bonds, exclude companies and also have things like this on their website, "Rest may vary the asset allocations (including the benchmark and ranges) of all or any of these options and introduce new options without prior notice".
Aware isn't too bad but they also exclude companies and hold nearly half the amount of stocks as ART. Although they use the same insurance as AustralianSuper so I'd be able to transfer. It's not a bad second option.
I looked at MemberDirect in AustralianSuper but the 20% mandatory holdings in pre-made options is horrible. They're all high fees & active. Apart from the index balanced option which has too high an allocation to Australian Shares & Bonds.
HostPlus would've been good but they denied me insurance.
Would love to get your thoughts.
Cheers.
I'd like to get some thoughts on changing my superannuation/retirement fund.
Currently 33 and I am with AustralianSuper in the High Growth option ($213,756) and contribute the $30,000/pa limit pre-tax. Earning $180k/pa pre-tax.
I should first clarify why I want to move.
1. I want to invest the same way I do in my brokerage account via low cost, global index funds (VTS/VEU)
2. Emphasis on low cost. Currently the high growth option is 0.50%.
3. I don't want to be subject to manager risk or any active management.
4. I don't want such a heavy weighting towards Australian shares.
5. I want a bond index fund available for a future bond tent strategy
6. Given the nature of my work, heavy blue collar, having insurance is hard to get so I need it.
Apart from insurance, AustralianSuper doesn't tick any of these boxes. I've had a look at Rest, Aware, HostPlus & ART and my verdict is leaning towards ART for a few reasons I'll state below.
ART
. International Index? MSCI ACWI ex-AUS (IMI)
. Unhedged? Yes & also hedged.
. Number of holdings? 2,702
. Fees? 0.09%
. AUS index? MSCI ASX
. Number of holdings? 300.
. Fees? 0.09%
. Bond index? Yes.
. Bond holdings? 50% Bloomberg Barclays Global Aggregate Index in $A hedged, and 50% Bloomberg AusBond Composite 0+Yr Index
. Fees? 0.08%
. Total$ Fees on $500k? $1,032/pa
. Insurance?
• $650k TPD = $763.65/pa
• $11k/month IP (2yrs, 90day wait) = $343.20/pa
This fund ticks all the boxes I'm after. If I can get insurance with them (they gave me a quote, meanwhile HostPlus wouldn't so fingers crossed), I can't see any reason not to move.
I would allocate my holdings to 80/20 (int/AUS) and begin my bond tent at age 50.
Am I missing something here? I see ART doesn't include carbon intense companies, is there any clarification on what these companies are exactly?
I chose this over the others because I don't like how rest removed bonds, exclude companies and also have things like this on their website, "Rest may vary the asset allocations (including the benchmark and ranges) of all or any of these options and introduce new options without prior notice".
Aware isn't too bad but they also exclude companies and hold nearly half the amount of stocks as ART. Although they use the same insurance as AustralianSuper so I'd be able to transfer. It's not a bad second option.
I looked at MemberDirect in AustralianSuper but the 20% mandatory holdings in pre-made options is horrible. They're all high fees & active. Apart from the index balanced option which has too high an allocation to Australian Shares & Bonds.
HostPlus would've been good but they denied me insurance.
Would love to get your thoughts.
Cheers.
Statistics: Posted by JimboMutumbo — Fri Jul 05, 2024 9:55 pm — Replies 0 — Views 113