The top performing super funds of the past decade have been revealed and the best performers aren’t the default options the majority of Aussies have their retirement savings locked away in.
High-growth options, which are defined by research house SuperRatings as funds with exposure to between 91 and 100 per cent growth assets such as shares, delivered average annual returns of 9.9 per cent over 10 years.
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The top performer was Vision Super’s Just Shares single-sector option, according to the group’s analysis, with average annual growth of 11.9 per cent.
This was followed by UniSuper’s High Growth option at 10.8 per cent and EquipSuper’s Growth Plus at 10.5 per cent.
Balanced options, which most Aussies are invested in, naturally delivered lower average annual returns compared to high growth options, with average annual returns of 7.7 per cent over the last decade.
They are defined by SuperRatings as those with growth asset exposure between 60 and 76 per cent.
Balanced options invest in a mix of growth and defensive assets, aiming for steady returns over time, compared to high growth options which aim for higher, long-term returns but can rise and fall more in the short-term.
SuperRatings manager of superannuation research and insights, Joshua Lowen, said super funds had delivered well for Aussies over the past decade.
“While the average level of inflation has sat around 2.9 per cent each year, fund’s Balanced options, which most Australians are invested in, have delivered approximately 7.7 per cent meaning they have delivered real value that members will benefit from once they retire,” he told news.com.au.
Top 10 super funds over last decade – High Growth
Fund and optionAverage annual return over 10 yearsVision Super – Just Shares11.9%UniSuper – High Growth10.8%Equip Super MyFuture – Growth Plus10.5%Perpetual WealthFocus – Perpetual Global Allocation Alpha10.2%ESSSuper – Shares Only10.1%MLC MasterKey Business Super – MLC High Growth10.0%legalsuper – High Growth9.9%Living Super – High Growth Option9.6%NESS – High Growth9.6%AMP SignatureSuper – Future Directions High Growth9.6%
Looking at balanced options, the best performer was Hostplus’ balanced option, with average annual growth of 8.9 per cent, followed by Bright Super’s balanced option at 8.8 per cent.
Hosplus’ Indexed Balanced option and Australian Retirement Trust’s Balanced option both delivered annual returns of 8.7 per cent over the last 10 years.
Returns are net of investment fees, tax and implicit asset-based administration fees.
Top 10 super funds over last decade – Balanced Index
Fund and optionAverage annual return over 10 yearsHostplus – Balanced8.9%Brighter Super – Balanced8.8%Hostplus – Indexed Balanced8.7%Australian Retirement Trust – Super Savings – Balanced8.7%AustralianSuper – Balanced8.5%Vision Super – Balanced Growth8.4%UniSuper – Balanced8.3%HESTA – Balanced Growth8.3%Aware Super Future Saver – Balanced8.2%Cbus – Growth (MySuper)8.1%
Mr Lowen said super returns could change quickly as they often relied on share markets.
“With most of us having years, or even decades, until retirement it’s important to focus on how well your super fund does in a range of different environments,” he said.
“While one-year returns might be impacted by a specific event or investment position, over longer timeframes these specific events have less influence on outcomes; however, it remains important to remember that past performance is not a reliable indicator of future performance.”
Mr Lowen said he sees the coming years as being more challenging as persistent inflation and the ongoing war in the Middle East weighs on growth expectations.
“So far, the promise of AI has supported returns, however we are increasingly seeing questions around how the expectation productivity gains from AI will translate into corporate profits,” he said.
“Following four years of strong returns we have seen a slower start to this financial year and members should be prepared for more subdued outcomes over coming years.”
Annual super statements land
It comes as annual super statements land in the email inboxes and mailboxes of millions of Aussies.
Your annual statement will show your account balance, contributions and investment returns for the last financial year.
Research from MLC found 45 per cent of Aussies didn’t know how their super fund’s investment performance had been, while 42 per cent didn’t know how their super money was invested.
Canstar data insights director Sally Tindall is urging Aussies to use the statement as a trigger to do a health check on their super.
“Your statement is also a good nudge to check whether your investment option, insurance and beneficiary nominations are still aligned with your goals and life stage,” she said.
“If you’ve changed jobs, family structure or retirement plans, it’s worth checking whether your super still reflects where you’re heading.”
You can use the ATO’s YourSuper comparison tool to compare MySuper funds. There are also comparison websites like Canstar, SuperRatings and Chant West that you can look at.
Your super fund is required to let you know if it underperforms under the APRA’s annual performance test.