Super funds are quite simply criminals in suits....
Read this pearler.... "Short selling is a legitimate investment strategy in a bear market because it is one of the most effective ways of increasing income when stock prices fall." http://www.news.com.au/heraldsun/story/0,21985,23398626-664,00.html
If so "effective" then why does the value of the fund fall so dramatically as the market falls? My super has lost $24,000 in 4 months. So if shorting is so damn good for me then where are the returns?
Yes it probably increases income (theirs), just not for the dills like us that rely on the managed funds to preserve our capital.
They buy a stock for us in our fund, we have an expectation it will increase in value. The super fund then "loans" that same stock (ours) to the hedge fund with the full knowledge that the stock will be sold down in value.
The is completely against the basic rule of superannuation. "Trustees run your fund. By law, they must act honestly and prudently, and make decisions in the best interests of all members." http://www.asic.gov.au
I can't wait for my SMSF and to dump this cheating lot in the bin where they belong.
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