Page 38 - Print21 March-April 2020

Super
Super returns
Industry super fund Media Super has become one of the country’s best-performing super funds. Print21 asks industry super fund Media Super CEO Graeme Russell how the fund performed in the past year, and what we can expect this year.
What differentiates Media Super from other industry super funds?
Before discussing what is different, it is important to highlight that Media Super’s portfolio is managed to the best practice principles of a successful superannuation fund. This includes building a diversified portfolio comprised of high-quality assets and investment managers, dynamic asset allocation and risk management. Unique elements of the fund include:
• Portfolio Protection
• Investments in out industries,
Fulcrum, ACO
• Nimbleness and flexibility
given our size
• Investments in smaller
opportunities that deliver outsized
risk-adjusted returns
• Leading environmental, social,
and governance (ESG) program that excludes tobacco, weapons, and thermal coal, combined with a commitment to invest $330m into our ESG priorities.
Why would a print industry person invest their Super
with Media Super?
Very competitive returns, low fees, and Media Super supports excellence in and the growth of the print industry.
What is Media Super’s
approach to member fees?
Media Super’s fees are in the bottom (lowest quartile) of fees for options, and our aim is to always have fees below the median.
Apart from investment growth what other benefits are available for print people in joining
Media Super?
Media Super also offers competitive death, disability, and income protection insurance, and financial education and advisory services. Also, we adjusted
our insurance arrangements
for under 25-year-olds before
the Parliament had even legislated those
requirements, and Media Super is one of the leading funds in having very diligently transferred out low balance, inactive accounts over the past seven years.
Do Media Super members have anything to fear from the government’s review of super? Not that I can think of. 21
How did Media Super perform in 2019?
Media Super’s MySuper Balanced Option performed well over the calendar year to December 2019, delivering a return of 14.83 per cent, which outperformed the median fund [which delivered 14.71 per cent]. Pleasingly, this boosts our rolling three-year and five- year returns to 9.43 per cent per annum for three years compared
to the median fund of 8.35 per cent. The five-year growth is 8.59 per cent a year, compared with the median fun of 7.57 per cent per annum. Based on the survey of the 50 largest superannuation funds in Australian (SuperRatings SR50 Balanced Survey), Media Super ranks in the top 10 over both three and five years.
Where was Media Super relative to other industry and retail funds?
The SR50 survey is comprised predominantly of Industry and non-profit superannuation funds.
What were the reasons for its result, was it riding the stock wave, or are there strategic decisions made that contributed to its performance?
Returns in 2019 were predominantly driven by Australian and global stock markets, which delivered
20 per cent plus in returns. While Media Super held a reasonable weight to shares, it was not materially greater than the
median fund. Other contributors to performance include Media
Super’s longstanding overweight allocation to
core infrastructure, which continued to outperform, along with niche allocations
to the Fulcrum Film Financing Fund, and specialist
private market investments.
Media Super is a strong supporter of the printing
industry, will that continue?
Yes.
38 Print21 MARCH/APRIL 2020