Omura outperforms every public offer superfund in Australia for the 2024 financial year

Following the release of Chant West’s 2024 Superannuation survey, we are pleased to announce that Omura’s portfolios have outperformed all Superannuation funds within the Growth asset allocation included in the survey for the year to 30 June 2024.

We have restated Chant West’s chart to include our result below. The original survey can be found here: https://www.chantwest.com.au/media/slnh0t1t/chant-west-media-release-17-july-2024-final.pdf

Additionally, whilst the survey did not include the best performing High Growth option, we have benchmarked our High Growth and Ultra High Growth portfolios against the High Growth survey median results, demonstrating further outperformance in these categories.

Note: our “Ultra High Growth” portfolios have been designed for young clients (typically, under the age of 40) who have a long investment horizon inside their Super who may benefit from additional risk/market exposure that a traditional “High Growth” portfolio can offer.

A large contributor to this strong outperformance was our nil exposure to direct unlisted property and infrastructure assets, which many of the large industry funds own. We have been warning our clients about an imminent write-down of these assets as cap rates were adjusted due to a change in interest rates. It was evident that unlisted book valuations of commercial property assets were (and still are) inflated, with the majority of listed commercial property funds trading at discounts of circa 30% of their stated net tangible asset values. The impacts were pronounced in the larger industry funds, with Hostplus returning 7.60% and Australian Super returning 8.50% for the same risk profile.

Our portfolios also held a significant overweight to the quality factor, largely through the QUAL ETF which returned 28.18% vs the MSCI World (ex Australia) index of 19.92%. In addition to providing exposure to companies with a higher return on equity and lower leverage, this factor has demonstrated outperformance during periods of economic weakness.

Finally, we held a meaningful allocation to Gold (returning 22%) as a hedge against persistent inflation and geopolitical tensions, whilst central banks continued to buy up this commodity to diversify their reserves.

Whilst we set no expectation of outperforming every public offer fund every year, it is a pleasing sign of our process.

Past performance is not an indicator of future performance.

Returns in the survey are stated net of tax, where our return is stated gross of tax as portfolios are directly owned by our clients rather than unitised. In some cases, a net of tax may result in a higher return due to a refund of franking credits, and in other cases, income taxes may exceed franking credits and hence detract from performance. Over this financial year, we would expect tax to be a detractor of performance due to large international fund distributions. However, we do not expect this detraction to cause net returns to drop below 10.7% (Growth option), being the best result, net of tax, according to the Chant West survey.

Returns are stated net of investment manager fees and gross of product administration fees and adviser fees.