If you’re looking to become financially independent, it can be a daunting task to choose the right investment vehicle. Especially in today’s volatile market, putting money in the wrong fund can lead to disappointing results. But have you considered Intrust Super? This Australian-based superannuation fund has been helping people secure their financial future for over 30 years.
But what exactly is Intrust Super? Simply put, it’s a diversified investment fund that offers a range of investment options to its members. Their investments include stocks, bonds, property, infrastructure and other alternative investments. This carefully curated mix of investments allows Intrust Super to provide their members with a well-rounded portfolio that grows with their interests and goals in mind.
As a member of Intrust Super, you can also take advantage of their financial planning services. Their financial experts can give you guidance on everything from retirement planning to investment strategy. Not only that, but they offer competitive fees, giving members peace of mind when it comes to their finances. So, if you’re looking for a reliable and trustworthy fund to help secure your financial future, Intrust Super could be the investment vehicle you’ve been searching for.
Types of Super Funds
When it comes to choosing a super fund, one of the most important decisions you’ll make is deciding on the type of fund. There are several types of super funds in Australia, each with its own features, benefits, and drawbacks.
- Industry Funds: These funds are typically run by unions or employer associations and are open to anyone. They have low fees and offer a range of investment options and insurance. They are often nonprofit and have a board made up of both employer and employee representatives.
- Retail Funds: These funds are offered by banks and financial institutions, and are open to anyone. They often have higher fees than industry funds, but offer a wide range of investment options and insurance.
- Corporate Funds: These funds are offered by employers for their employees and are not open to the general public. They often offer lower fees and tailored investment options, but may have limited insurance options.
Intrust Super Fund
Intrust Super is an industry super fund, meaning it is run by a board made up of both employer and employee representatives. It is open to anyone and offers a range of investment options and insurance. It has low fees compared to many retail funds and has consistently performed well in comparison to the market.
One of the unique features of Intrust Super is the option to invest in socially responsible investments, which align with ethical and environmental considerations. This is a great option for those who want to invest in companies or projects that have a positive impact on society or the environment.
| Feature | Description |
|---|---|
| Low Fees | Intrust Super has some of the lowest fees in the industry, which means more money is going towards your retirement savings. |
| Range of investment options | With over 25 investment options to choose from, you can tailor your investment to your specific goals and risk tolerance. |
| Insurance options | Intrust Super offers a range of insurance options including death, total and permanent disability, and income protection. |
| Socially responsible investments | Intrust Super offers the option to invest in socially responsible investments, which align with ethical and environmental considerations. |
Overall, the type of super fund you choose will depend on your individual needs and circumstances. Intrust Super is a strong option for those looking for low fees, investment options, and socially responsible investment choices.
Industry Super Funds
Industry super funds are a type of superannuation fund that are run to benefit members with a focus on low fees and strong investment performance. These funds are generally run by unions or employer associations in a specific industry, such as construction or hospitality. In the case of Intrust Super, it is the industry fund for hospitality, tourism, and retail workers in Australia.
- One of the key features of industry super funds is that they are not-for-profit. This means that any profits made are put back into the fund for the benefit of members, rather than being distributed to shareholders or owners.
- Another feature of industry super funds is that they typically have lower fees than retail funds, which are run by banks or financial institutions. This is because industry funds are run to benefit members, rather than generate profits for shareholders.
- Industry super funds also have a strong track record of investment performance. Intrust Super, for example, has consistently outperformed the median return of other super funds in Australia over the past ten years.
In addition to these features, industry super funds like Intrust Super also provide a range of benefits and services to members. These include financial advice, insurance cover, and access to discounted banking and other financial services.
| Industry fund | Established | Number of members | Total assets ($billion) |
|---|---|---|---|
| Intrust Super | 1988 | over 100,000 | 5.5 |
| Hostplus | 1987 | over 1 million | 50 |
| Rest Super | 1988 | over 2 million | 57 |
Overall, industry super funds like Intrust Super offer a range of benefits and features that make them an attractive option for many Australians looking to grow their retirement savings.
Retail Super Funds
When it comes to saving for retirement, there are several options available and retail super funds is one of them. A retail super fund is a type of fund that is offered by financial institutions such as banks, insurance companies, and investment firms. Unlike industry super funds which are typically not-for-profit funds run by unions or employer associations, retail super funds are for-profit funds and are open to the general public.
Here are some of the features of retail super funds:
- Choice of investment options – Retail super funds often offer a wide range of investment options, allowing members to choose investments that suit their risk appetite and investment goals.
- Access to financial advice – Many retail super funds offer access to financial advisers who can help members make informed decisions about their investments.
- Fees and charges – Retail super funds generally charge higher fees and may have additional fees such as entry and exit fees.
Why Choose a Retail Super Fund?
There are a number of reasons why someone may choose to invest in a retail super fund:
- Investment options – As mentioned earlier, retail super funds often offer a wider range of investment options than industry super funds. This can be beneficial for those who want greater control over their investments.
- Access to advice – Retail super funds often offer access to financial advisers who can provide guidance on investment decisions.
- Brand recognition – Some people may feel more comfortable investing with a well-known financial institution.
Potential Pitfalls of Retail Super Funds
While there are benefits to investing in a retail super fund, there are also some potential pitfalls to be aware of:
- Fees – Retail super funds typically charge higher fees than industry super funds, which can eat into your returns over time.
- Conflicts of interest – As retail super funds are for-profit entities, there may be a conflict of interest between the fund’s interests and those of their members.
- Lack of transparency – Unlike industry super funds, retail super funds are not required to disclose their investment strategies and holdings.
Comparison of Retail Super Funds
If you are considering investing in a retail super fund, it is important to do your research and compare different funds to find the one that best meets your needs. Here is a table comparing three popular retail super funds:
| Super Fund | Investment Options | Management Fees | Additional Fees |
|---|---|---|---|
| AMP Superannuation | Over 100 investment options including shares, property and fixed interest | 1.27% p.a. | Account Keeping fee of $6.33/month |
| Colonial First State | Over 70 investment options including shares, property and fixed interest | 0.98% p.a. | Investment Switching Fee of $25 per switch |
| BT Super For Life | Over 30 investment options including shares, property and fixed interest | 1.30% p.a. | Exit Fee of $35 |
When comparing retail super funds, it is important to consider not only the fees but also the investment options and any additional features such as access to financial advice.
Self-managed super funds
If you’re looking for a more hands-on approach to managing your superannuation, then a self-managed super fund (SMSF) may be the way to go. An SMSF is a super fund where the members are also the trustees, meaning that they have control over the investment decisions made within the fund.
However, with this control comes added responsibility. As a trustee of an SMSF, you are responsible for complying with the super laws and ensuring that the fund is being managed in a way that benefits all members.
Benefits of an SMSF
- Greater control over investment decisions
- Flexibility in investment options (eg. investing in property)
- The potential for tax savings
Risks of an SMSF
It’s important to also consider the risks associated with managing your own super. These can include:
- Greater responsibility and time commitment
- Potentially higher costs
- The risk of not meeting compliance obligations, resulting in penalties
Choosing the right type of fund
Deciding on the right type of super fund for you can depend on your personal circumstances, goals and preferences. It’s important to weigh up the benefits and risks of each option before making a decision.
Comparing Intrust Super to other funds for SMSFs
If you do decide that an SMSF is the right fit for you, it’s important to compare different options before making a decision. Intruct Super offers a competitive and comprehensive SMSF solution, with features including:
| Features | Intrust Super | Other SMSF providers |
|---|---|---|
| Investment choice | Wide range of investment options including shares, property, and term deposits | Varies depending on provider |
| Fee structure | Transparent and competitive fee structure with no hidden costs | Varies depending on provider |
| Compliance support | Assistance with complying with super laws and regulations | Varies depending on provider |
By comparing different SMSF providers, you can ensure that you’re choosing an option that best suits your needs and financial goals.
Benefits of Intrust Super
When it comes to planning for your retirement, there are many different investment options available to you. One option that is gaining popularity is Intrust Super, a superannuation fund that offers a range of benefits to members. In this article, we will explore what types of funds Intrust Super invest in and why you might consider choosing this fund for your retirement savings.
Low Fees
- One of the key advantages of Intrust Super is its low fees. Many other superannuation funds charge high fees that eat into your investment returns. Intrust Super, on the other hand, has some of the lowest fees in the industry, meaning you get to keep more of your money working for you over the long term.
Diversification
Intrust Super invests in a diversified range of assets, including bonds, shares, and property. This diversification helps to spread risk across different asset classes and can help to protect your investments during times of market volatility. By investing in a wide range of assets, Intrust Super aims to deliver consistent long-term returns for its members.
Environmentally and Socially Responsible Investments
Intrust Super is committed to investing in companies that have strong environmental, social, and governance (ESG) practices. This means your investments are not only generating financial returns but are also contributing to a more sustainable future.
Fund Performance
| Year | Returns |
|---|---|
| 2020 | 8.9% |
| 2019 | 16.1% |
| 2018 | -2.9% |
Intrust Super has consistently delivered strong investment returns for its members. In 2020, the fund returned 8.9% and over the last five years, it has returned an average of 8.9% per annum. While past performance is not a guarantee of future returns, these figures demonstrate Intrust Super’s commitment to generating strong long-term investment returns for its members.
Investment Options in Intrust Super
One of the essential aspects of any superannuation fund is the investment options available to its members. Intrust Super offers a range of investment options to cater to different risk appetites and investment horizons.
Here are some of the investment options available in Intrust Super:
- Growth Option: This option aims to provide high long-term returns by investing in a diversified portfolio of growth assets such as shares, property, and alternative assets. It is best suited for members who have a long investment horizon and are willing to take on higher levels of risk for potentially higher returns.
- Conservative Option: This option aims to provide stable, low to medium long-term returns by investing in a diversified portfolio of defensive assets such as cash, fixed interest, and bonds. It is best suited for members who have a shorter investment horizon or are risk-averse and prefer a more stable investment strategy.
- Cash Option: This option invests solely in cash, providing members with a stable, low-risk investment option that aims to preserve capital. It is best suited for members who have a shorter investment horizon or require a capital preservation strategy.
- Pre-Mixed Options: Intrust Super also offers pre-mixed options that provide a diversified mix of growth and defensive assets. These options cater to members who want a simplified investment strategy or prefer a set-and-forget approach to investing.
In addition to these options, Intrust Super also offers socially responsible and ethical investment options that align with members’ values and beliefs. These options invest in companies that meet specific screening criteria, such as environmental sustainability, human rights, and ethical business practices.
It’s worth noting that the performance of your investment options will depend on a range of factors such as economic conditions, market volatility, and other investment risks. Therefore, it’s essential to consider your risk appetite, investment horizon, and financial goals when selecting your investment options in Intrust Super.
Investment Performance
Intrust Super regularly reviews and reports on the investment performance of its investment options. The performance figures for each option are updated quarterly and are available on the Intrust Super website.
Here is a table showing the investment performance of some of Intrust Super’s investment options for the financial year 2020-2021:
| Investment Option | 1 Year Return | 3 Year Return | 5 Year Return |
|---|---|---|---|
| Growth | 24.35% | 9.99% | 10.61% |
| Conservative | 3.86% | 3.12% | 3.34% |
| Cash | 0.76% | 1.50% | 1.95% |
Keep in mind that past performance is not a guarantee of future returns, and investment returns can vary significantly over time. Therefore, it’s crucial to monitor your investment options regularly and seek professional financial advice if you have any concerns.
Performance of Intrust Super Compared to Other Funds
Intrust Super is a solid performer in the superannuation industry, and its competitive edge is owed to its diverse range of investment options. This diversity is reflected in the fund’s returns, especially its MySuper product which has outperformed the industry average as well as many other MySuper funds.
MySuper is a type of fund option that offers a simple, cost-effective solution for employers to meet their superannuation obligations. Intrust Super’s MySuper has a low fees structure, providing members with a pocket-friendly option to grow their retirement savings.
- Investment Returns: Intrust Super’s Balanced investment option has delivered a strong performance over the long term. According to their website, in the 2019 financial year, their Balanced option returned +9.46% p.a., and over a 10-year period, the average return was +7.29% p.a. These figures are impressive compared to the industry superannuation fund median returns of +6.75% p.a. for 2019 and a 10-year average of +5.82% p.a.
- Asset Allocation: Intrust Super’s asset allocation is carefully structured to maximize performance and ensure risks are spread effectively. According to the 2019 financial year investment report, the Balanced investment option has an asset allocation of 50.9% in growth assets, 17.4% in alternatives, and 31.7% in defensive assets. This strategic asset allocation has contributed significantly to its strong returns.
- Fees: A good fund not only delivers impressive performance but also keeps costs down. Intrust Super is known for its low fees, and this is reflected in its MySuper option which has low fees between $50 to $65 per year and an annual administration fee of 0.15% of the account balance.
Comparing Intrust Super to Other Funds
Intrust Super’s performance has proven to be better than many other superannuation funds in Australia. This is evident in the top-notch returns delivered by its Balanced investment option, which has consistently outperformed its peers over the long term. It has considerably higher returns compared to the average return of other funds. According to SuperRatings, as of 31 October 2021, the Balanced option for Intrust Super had a 10-year performance rating of 7.68, whereas the industry average was only 6.35.
| Superannuation Fund | 10-Year Return |
|---|---|
| Intrust Super Balanced | 7.68 |
| Industry Fund Average | 6.35 |
Comparing Intrust Super’s fees and returns from their Balanced investment option to those of other superannuation funds, they deliver amazing value for members. Intrust Super is not only an excellent fund choice, but it’s also a smart choice for someone who wants a fund that prioritizes performance but also has low-cost fees.
What Type of Fund is Intrust Super?
What is Intrust Super?
Intrust Super is a superannuation fund, which is designed to help individuals save and invest for their retirement. It is open to anyone who resides in Australia and is eligible to receive super contributions.
What Type of Fund is Intrust Super?
Intrust Super is a MySuper authorisation fund. This means it is a low-cost default super fund that is designed to provide a simple and easy-to-understand superannuation option.
What Investment Options are Available with Intrust Super?
Intrust Super offers several investment options, including conservative, balanced, growth, and high growth. The fund offers diversified investment options, which are a blend of Australian and international equities, fixed income, property, and alternative investments.
What are the Fees Associated with Intrust Super?
Intrust Super charges a low percentage-based administration fee of 0.10%, as well as an investment fee ranging from 0.69% to 0.96%, depending on your chosen investment option. There are no hidden fees, exit fees, or contribution fees, making it a cost-effective superannuation option.
What Insurance Options are Available with Intrust Super?
Intrust Super offers a range of insurance options, including life insurance, total and permanent disability insurance, and income protection insurance. These insurance options allow members to protect themselves and their loved ones from unexpected events.
How Can I Join Intrust Super?
You can join Intrust Super by filling out an online application form on their website or contacting their customer service team for assistance. You will need to provide your personal and employment details, as well as your tax file number and nomination of beneficiaries.
Closing Thoughts
Thank you for taking the time to learn about what type of fund Intrust Super is. With their low fees, diverse investment options, and insurance options, it is a great option for those looking to invest and save for their retirement. Remember to visit their website for more information and to join the fund.