2 advisers replicate a $400bn super fund - download their portfolios!

At its core, the exchange-traded product was built with a humble goal: give everyday investors access to the same tools the big end of town uses.

For years, super funds had a clear edge. Like a five-star kitchen stocked with exotic spices and truffles, they could go deeper into markets - Asian equities, private credit, ports - and hire top-tier investing chefs (ahem, active managers) to build highly customised portfolios.

Until recently, us retail investors were forced to cook with the basics.

ETFs and - to an extent - LICs have changed that. They’ve become the great equaliser, opening up institutional-grade exposures in a listed product.

But how far does that really go? Can you actually build a portfolio that looks like a super fund?

We put that challenge to Alex Thompson of Viola Private Wealth and Andrew Wielandt of DP Advisory, asking them to replicate Australia’s biggest super fund and share their portfolios for you to download.

The brief explained

AustralianSuper is a $400 billion-plus beast, making it one of the 20-largest pension funds in the world. Its flagship balanced option is the default fund for millions of Australian workers, since 1985, the strategy has delivered 9.52% p.a.

The challenge:

• Build a portfolio using 10+ ETFs/LICs
• Target a 75% growth/25% defensive split
• Diversify across asset classes, using the weightings below as a starting point
• Keep fees below AustralianSuper’s 0.77% (the fee on a $50k balance)
• Blend passive and active exposures

ALEX THOMPSON - VIOLA PRIVATE WEALTH

As with all portfolios I build - in the context of the client’s goals and objectives - strategic asset allocation (SAA) sits at the centre of the decision-making framework and acts as the primary driver of risk and return outcomes over time.

Overall, this portfolio reflects how we think about building all‑weather, institutionally informed portfolios: SAA first, asset quality always, and an intentional blend of passive efficiency and active risk where it is rewarded.

I have adjusted the tilts slightly compared to the AustralianSuper asset allocation, but the overall portfolio targets a ~75%/25% growth‑defensive split, which I would actually prescribe as more assertive than a traditional balance portfolio, but it still firmly sits within the risk parameters typically adopted by a large superannuation fund “balanced” portfolio.

The objective is to deliver 7-9% p.a. through the cycle, accepting a modest increase in volatility in exchange for improved long‑term outcomes, consistent with how super funds manage capital for their members with multi‑decade time horizons. 

The core growth allocation is anchored by low‑cost passive exposure to domestic and global equities, this gives the portfolio broad market beta and cost efficiency. 

I then aim to complement the market beta positions with a selective allocation to active managers (Ophir, Macquarie, Loftus Peak, Plato etc.), where skill, structure and mandate flexibility meaningfully increase the probability of alpha, particularly in less efficient segments of the market where information isn’t disseminated as evenly.

While private markets are excluded by design of the exercise, the listed alternatives are used to play the role private assets would normally play in a super fund. 

Global infrastructure, private equity, credit, and absolute return funds are included to enhance resilience, diversify return drivers, and smooth outcomes across cycles, without sacrificing daily liquidity. 

The defensive sleeve is constructed with a focus on capital preservation and income reliability, using a combination of fixed income, asset‑backed credit, cash, and lower beta alternatives to provide ballast during periods of market stress.

📥Download Alex's Super Star, Super Portfolio

Andrew Wielandt - DP WEALTH ADVISORY

In putting this portfolio together, I’ve broadly based it on our DP Wealth Advisory Growth model, which runs at a 70%/30% growth-defensive split. We also hold a number of managed funds in that model which complement this portfolio, but for the purposes of this brief, I’ve focused primarily on ETFs.

I’ve gone slightly overweight Australia given the current uncertainty around AI and the “SaaS-apocalypse,” with three core holdings: State Street SPDR S&P/ASX 200 ETF (ASX: STW) for broad passive exposure, a quality tilt via Betashares Australian Quality ETF (ASX: AQLT), and Milford Australian Absolute Growth Complex ETF (ASX: MFOA).

MFOA also acts as a risk management tool, as its active management and ability to hold cash tends to reduce downside compared to STW and AQLT.

For international exposure, we’ve deliberately avoided the usual Vanguard funds given they are market-weighted and introduce concentration risk, especially in US equities and its sector. 

We retain US exposure through iShares S&P 500 (AUD-Hedged) ETF (ASX: IHVV) and VanEck International Quality ETF (ASX: QUAL), but have added a larger position in Vanguard All-World ex-US Shares ETF (ASX: VEU) for diversification, along with iShares Japan ETF (ASX: IJP) to capture attractive valuations in Japan.

We’re also positioning for the long-term growth of China’s “new economy” via VanEck China New Economy ETF (ASX: CNEW), which focuses on tech, healthcare and consumer sectors.

One addition not in our core model but included here is Plato Global Alpha Fund Complex ETF (ASX: PGA1). It has delivered strong returns, and I like its ability to provide diversification and capitalise on market weakness through shorting.

On the defensive side, I’ve selected the Janus Henderson Tactical Income Fund (ASX: TACT), which has exceeded its benchmark across both income and capital growth. I’ve also allocated a higher-than-usual level of cash via Betashares High Interest Cash ETF (ASX: AAA) - roughly four times our typical holding - given current market uncertainty and potential opportunities arising from the Middle East conflict.

Even as a super fund, I think you need to be active around managing risks and ETFs allow us to be nimble and flexible in this regard.

📥Andrew's Super Tactical, Super Portfolio

Editor’s Note: the power of becoming your own cio

This is the fourth time I’ve run an exercise like this, and it genuinely gets better each time. There’s always a new lesson in how these portfolios come together!

Alex and Andrew have built end-to-end portfolios with a handful of ETFs and LICs - proving you can cover almost the entire market spectrum at a lower cost than Australia’s biggest super fund.

• Alex's Super Star, Super Portfolio steps into the shoes of a super fund's chief investment officer. It’s broad, layered, and leans heavily into institutional-style exposures - alternatives, gold, long/short, and active managers targeting the next wave of disruptors. It really highlights the potential of listed markets.

• Andrew's Super Tactical, Super Portfolio takes a different approach. It’s simpler, leaner, and more deliberate - but no less considered. With fewer moving parts, he still achieves meaningful diversification, while actively tilting away from crowded areas like US tech and into regions with stronger relative value, such as Japan and parts of the Chinese economy.

I hope you enjoyed this exercise, fellow readers. What was once reserved for institutions like AustralianSuper - portfolios spanning asset classes, blending active and passive, and were previously unlisted - is now sitting on your brokerage screen!

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