Best of the Best 2024: Best-Value Super Fund for Young People
Mine Super has been named Money's 2024 Best-Value Super Fund for Young People as part of the Best of the Best awards.
A smaller, agile player shows its bigger rivals how to play the game
Strong investment returns can rev up a young person's superannuation fund, but how do they pick the right one? Mine Super should be top of the list for its robust investment performance.
Mine Super's returns
The lifecycle investment strategy for members aged 50 years and under was the highest-performing default option in 2022-23 with a 13.9% return.
It compares with a median return of 9.15% achieved across all default options.
The fund's growth product ranked number one, delivering a 12% annual return against an industry median of 9.2%.
Mine Super's international shares, bonds and indexed defensive options were all rated in the top five in their categories for 2022-23.
Seamus Collins, chief investment officer at Mine Super, says the biggest contributor to the big performance in 2022-23 was the strength in global and domestic equity markets, in particular the contribution from large-cap growth and tech stocks.
"Some of this strong equity performance may be attributed to stronger economic activity than was anticipated and perhaps an expectation that the cycle of interest rate rises has mostly run its course. Some economists now predict that interest rates may fall over the next financial year," says Collins.
"Mine Super has taken, and is continuing to take, initiatives to create robust, well-diversified portfolios that seek to protect members' savings from future turbulence.
"This includes reducing exposure to office property, allocating additional monies to private credit strategies and unlisted real assets, as well as looking for innovative strategies not available to larger superannuation funds to harness the advantage of our fund's agility and size."
The history of Mine Super
Established in 1941, Mine Super has become a public offer fund and currently manages $12.5 billion on behalf of its 55,000 members. It describes itself as "a strong supporter of the workers in the mining and related industries."
Formerly Auscoal, Mine Super is in the process of merging with TWUSUPER.
The merged fund will manage nearly $20 billion on behalf of 150,000 members. Subject to due diligence, it is anticipated that the deal will be finalised in early 2024.
Vasyl Nair, CEO of Mine Super says the award is testament to the hard work of the Mine Super team to deliver a strong, member-focused product that supports long-term retirement goals.
"To be recognised as having the leading product for young people is a wonderful achievement and demonstrates our competitive offer."
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