Being in a consistently high-performing super fund is crucial for growing your superannuation balance over time. Members who are part of poorly performing funds risk having significantly lower balances at retirement.
According to the Productivity Commission’s review of superannuation, consider the case of a 21-year-old with a starting salary of $50,000. If they joined a fund consistently ranked in the top quarter of performers, they could retire at age 67 with a super balance of $1.1 million. In contrast, if they joined a fund consistently in the bottom quarter, their balance would only reach $610,000—45% ($502,000) less than the top-performing fund.
While returns are essential, they aren’t the sole measure of a good super fund. Other factors such as fees, insurance offerings, member services, and investment options also play a significant role. If your current fund has a long history of underperformance, it may be worth considering switching to one with a proven track record of superior returns.
Understanding Super Fund Performance Tables
When super performance tables are published in the media, they typically compare funds in a single risk category—such as ‘balanced’ or ‘growth’—with 60-80% of their investments in growth assets. However, performance should be viewed within the context of the fund’s risk profile.
SuperGuide offers a more comprehensive analysis, providing performance tables across five risk categories:
- All Growth (96-100% growth assets)
- High Growth (81-95% growth assets)
- Growth (61-80% growth assets)
- Balanced (41-60% growth assets)
- Conservative (21-40% growth assets)
This allows for a more accurate comparison of funds with similar risk profiles, making it easier for investors to make informed decisions.
Top 10 Performing Super Funds (Balanced Category)
The following are the top 10 performing superannuation options in the Balanced category (with 60-76% of assets invested in growth) ranked by their 10-year annual return as of June 30, 2024:
| Super fund | Investment option | 10 yr return (% per yr) |
|---|---|---|
| Hostplus | Balanced | 8.3% |
| Australian Retirement Trust | Super Savings – Balanced | 8.1% |
| AustralianSuper | Balanced | 8.1% |
| UniSuper | Balanced | 7.9% |
| Cbus | Growth (MySuper) | 7.7% |
| Hostplus | Indexed Balanced | 7.7% |
| Vision Super | Balanced Growth | 7.6% |
| HESTA | Balanced Growth | 7.6% |
| CareSuper | Balanced | 7.6% |
| Spirit Super | Balanced (MySuper) | 7.5% |
These returns are net of investment fees, taxes, and implicit asset-based administration fees. Fees are calculated on a $50,000 balance as of June 30, 2024, and include administration fees, member fees, investment management fees (including performance-based fees), indirect cost ratios (ICRs), and taxes. However, any applicable employer size rebates are excluded.
A Word of Caution
It’s important to remember that past performance is not a guarantee of future results. Super fund returns fluctuate over time, and it’s essential to continuously monitor your super’s performance to ensure it remains aligned with your financial goals.
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Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Insurance (aka: Hippo Wealth), with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at http://www.hippoinsurance.com.au