10 top-performing super funds for 2021 announced

Posted: 19 July 2021 3:58 pm
News
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The top-performing growth super fund returned 22% for the year, while the bottom-performing fund returned 13%.

Super funds have had a record year, delivering the best returns in more than 24 years over the last 12 months. The median growth super fund returned 18% for the year ending 30 June 2021, according to Chant West.

Growth funds are super funds with 61-80% allocation to growth assets, such as shares, and they're where the majority of us have our super invested. They're often the default option you're placed with when joining a super fund, unless you proactively opt to switch to the high growth super option.

For the 12 months ending on 30 June, the top-performing growth super fund returned 22.6% and the bottom fund returned 13% (remember, 13% in any standard year is an exceptional result!).

Here are the best performing funds for the last 12 months, and their performance returns to 30 June 2021.

  • Mine Super Growth: 22.6%
  • CFS FirstChoice Growth: 21.7%
  • VISSF Balanced: 21.6%
  • Hostplus Balanced: 21.3%
  • MLC Horizon 4: 20.8%
  • Sunsuper Balanced: 20.7%
  • AustralianSuper Balanced: 20.5%
  • REI Super Balanced: 20.0%
  • TelstraSuper Balanced: 19.9%
  • BT Active Balanced: 19.7%

Chant West senior investment research manager Mano Mohankumar said this was an impressive return, and super fund members should be pleased. "An 18% return would have been inconceivable a year ago and represents a welcome reward for fund members who held their nerve and remained patient through the depths of the COVID-induced market crisis."

"The experience over the past two years highlights the resilience and robustness of super funds' portfolios," he said.

Focus should be on long-term returns

While these are exceptional returns, superannuation is a long-term investment. In fact, it's probably the longest investment you'll ever have. So it's important to consider the long-term performance figures when comparing super funds to see if a fund has a good record of consistently high returns.

Chant West has also revealed the best-performing funds over the past decade, as shown in the table below.

10 best-performing super funds over 10 years

Super fund10-year return (average p.a. to June 2021)
AustralianSuper Balanced9.7%
Hostplus Balanced9.7%
Cbus MySuper9.6%
UniSuper Balanced9.5%
CareSuper Balanced9.1%
Sunsuper Balanced9.1%
VicSuper MySuper9.0%
Australian Ethical Super Balanced9.0%
Vision Super Balanced Growth9.0%
Aware Super Growth9.0%

"Super funds have had a tremendous year with a median return of 18% but returns at that level shouldn't be thought of as normal. The typical long-term return objective for growth funds is to beat inflation by 3.5% p.a., which translates to about 5.5% to 6% p.a.," said Mohankumar.

"We now have data going back 29 years to July 1992, the start of compulsory super. Over that period, the annualised return is 8.2% and the annual CPI increase is 2.4%, giving a real return of 5.8% p.a. – well above that 3.5% target," he said.

When did you last check your super? Compare super funds today and see how your current fund stacks up. If yours is underperforming or you're paying too much in fees, consider making the switch. Or for a bit more help comparing your options, take a look at some of Finder's best super fund picks.

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2 Responses

    Default Gravatar
    TimJuly 23, 2021

    Hi
    What are the pros and conds in relation to holding a residential permanent investiment rental income producing house for long term , over 10 years , in a personal name compared to a Pty Ltd company owned only by the same personal named person
    Thanks
    Tim

      Avatarfinder Customer Care
      SarahJuly 26, 2021Staff

      Hi Tim,

      The difference between buying a property in your personal name versus a company name comes down to two main areas: taxes and ownership structure. When you buy a property in your own name, you pay tax based on your own personal income tax rate. When you buy a property in a company name, you pay tax and stamp duty based on company rates. This means you might not be eligible for things like stamp duty discounts or the 50% CGT discount when you sell, if you buy in a company name.

      The second aspect to consider is asset protection. If the property is owned in a company name, this provides a different level of asset protection compared to buying it in your own name.
      The best decision to make in this regard depends on your income, your assets and your personal goals, so you’re best off making this decision in consultation with a financial planner.

      Hope this helps.

      Many thanks,
      Sarah

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