10 top-performing super funds for 2021 announced
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 fund||10-year return (average p.a. to June 2021)|
|Australian Ethical Super Balanced||9.0%|
|Vision Super Balanced Growth||9.0%|
|Aware Super Growth||9.0%|
"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.