MB Fund smashes the competition

Chant West released its returns for superannuation funds for last month and a preview of the March massacre. Our funds beat the benchmarks by up to 3.7% in February. In March returns to date our funds look to be beating benchmarks by closer to 10%. 

We moved decisively into international cash and bonds at the end of January and out of shares.    

Nucleus Outperformance

From Chant West:

“Growth funds, which is where most Australians have their superannuation invested, hold diversified portfolios that are spread across a wide range of growth and defensive asset sectors. This diversification works to cushion the blow during periods of share market weakness. So while Australian and international shares are down at least 27% since the end of January, the median growth fund’s loss has been limited to about 13%.”

It is unclear which day the quote was from. As at the close on the 19th, the ASX 200 Accumulation index was down 32% from the start of February. Our growth fund is down 0.79%:

Nucleus Outperformance

 Past performance is not an indication of future performance. 

Just to be clear, all of our funds are invested in liquid, traded blue-chip stocks, federal government bonds or cash. There is no shorting, no derivatives, no leverage. Just high-quality assets. These assets are held by our investors in their own accounts, with only their own tax issues. There is no co-mingling of assets and tax liabilities as you see in a traditional superannuation fund. 

Many superannuation funds also hold significant levels of unlisted assets which they value themselves, most likely inflating returns. 

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Damien Klassen is Head of Investments at the Macrobusiness Fund, which is powered by Nucleus Wealth.

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.

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Comments

  1. Damien I have a question – since many Super funds just rate themselves, at what time does it take place when they would get found out? Only during a run on their memberships?

    And Grats you nailed it. (disclosure I am in the MB fund).

    • darklydrawlMEMBER

      Yep, Well done people. Nothing like putting your money where your mouth is to show you’re serious. Great stuff.

  2. Damian I signed up a partial rollover about a week ago and have not heard back – how long does it normally take ?

    • Damien KlassenMEMBER

      Depends on your superannuation fund. Our process gets the request off in a day or two. Some superannuation funds release the funds quickly and the money is in your new account in a week or so. Some drag it out as long as they can and it can take a month.
      Unfortunately its out of our hands and depends on your current fund.

  3. JunkyardMEMBER

    Thank you for the update. I imagine managing people’s investments is extremely nerve-racking and stressful at a time like this. Hope you guys are getting some sleep!

      • Trading it is to me, terrifying and fun.

        Is there any chance at all you’ll add some tactical hedging or mindblowingly obvious shorts, say 2-5% of capital as an option?

        I can’t help but wonder how much you’d be up if you bought some long dated xjo puts in January.

  4. Alan SmitheeMEMBER

    Thanks team, great job so far and very happy with the results to date given the situation!

  5. C.M.BurnsMEMBER

    have been very impressed with the results and also your communication and how easy it is to work with you (Tim and his team are fantastic). Hopefully you get recognition and greater business as a result of all this.

    • Tim FullerMEMBER

      Finally some acknowledgment! Appreciate all good feedback as always 🙂 Have a great weekend.

  6. just_the_pipMEMBER

    Great job guys. Very happy to have my super and a good chunk of cash invested with Nucleus at this time. I’ll be tipping more in once this crisis has played out

  7. Damien is a wizard and it’s always interesting to read his articles. Maybe there could be a regular, perhaps weekly, article from Damien?

    • Tim FullerMEMBER

      Hi Paul – yes we offer Life and TPD through super as part of the onboarding. Quoting done live and we facilitate this before moving investments. No Income Protection in super at this stage, but can discuss individually as required.

  8. Been very good. My only niggle is my SMSF is with eSuper and they treat Nucleus as an SMA, so I have to shift away from eSuper – found that after Tim told me eSuper wouldn’t be a problem…