AUSTRALIA - The A$1.8bn (US$1.93bn) Professional Associations Super (PAS) has posted returns of 11.2% in the 2010/2011 financial year for its growth option.
The growth option outperformed the median return for industry superannuation funds balanced option, which was 9% over the same period, according to a SuperRatings Fund Crediting Rate Survey.
PAS said the asset allocation profile of its growth option has a similar investment profile to the balanced option of most funds.
"We actively invest in a diversified portfolio of traditional exposures - in particular, equities and bonds - and have generally sought to avoid many of the more complex and unlisted assets that have proliferated across industry super fund portfolios in recent years," said PAS CIO Paul Kessell.
"We now have approximately $1.8bn in funds under management, but our performance in the past year means that we're outperforming funds that are significantly larger."
PAS has more than 440,000 members and around 97% of members have "at least some of their super invested" in the growth option, said PAS CEO Megan Bolton.
PAS said they aim to hit A$3bn in AUM by 2012 through both organic growth and through M&A activity.
Meanwhile, the A$35.9bn Victorian Funds Management Corporation (VFMC) delivered net investment returns of 12.0% for the financial year ending 30 June 2011, 1.08% above the industry benchmark.
All asset classes outperformed their relevant benchmarks, said VFMC , which provides investment and funds management services to 16 public sector clients in Victoria.
It marks the second consecutive year of double digit net returns and benchmark outperformance, VFMC said. Net returns for Department of Treasury and Finance (DTF) clients were 12.05% and 1.19% above the relevant industry benchmark in 2009-10. The outperformance over the past two years follows two years of relative underperformance, VFMC said.
Investment returns for DTF clients, after meeting their withdrawal requests to fund on-going operating and liability obligations of A$1.83bn, increased the value of the underlying assets over the past two years by A$5.33bn.
Private equity provided the strongest one-year return with 20.94% against an 11.9% benchmark. Infrastructure was the next best performing asset class, with a 12.95% one-year return against a one year benchmark of 8.3%.
Australian equities returned 13.54% and international equities returned 15.33% over the same time period, beating both their benchmarks. Diversified fixed interest had a return of 8.57% against a 7.28% benchmark, the fund reported.
"These returns are promising," said VFMC chairman John Fraser. "The changes which have taken place at VFMC in the past few years have been supportive of these investment outcomes."
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Professional Pensions is holding its defined contribution (DC) conference on 4 September.