Best-performing super fund over 10 years revealed

Posted: 10 February 2021 3:02 pm
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The top-performing growth super fund achieved an average return of 9.0% p.a. over the last 10 years.

Data by leading superannuation research firm Chant West reveals AustralianSuper Balanced and UniSuper Balanced tied as the top-performing growth super funds over the last 10 years. Both funds achieved an average return of 9.0% p.a. for members over the past 10-year period ending in December 2020.

The data looks at growth super funds, which are those with 61-80% of assets invested in growth assets like shares. This is where the majority of Australians have their super invested.

Industry super funds have dominated the list of top-performing funds over the last decade. Cbus Growth and Hostplus Balanced followed closely behind AustralianSuper and UniSuper for returns over the previous 10 years.

Best-performing growth super funds over 10 years

Super fund10-year return p.a.
AustralianSuper Balanced9.0%
UniSuper Balanced9.0%
Cbus Growth (Cbus MySuper)8.9%
Hostplus Balanced8.8%
CareSuper Balanced8.5%
VicSuper Growth (MySuper)8.4%
Equip Balanced Growth8.4%
Aware Super Growth8.4%
Prime Super MySuper8.3%
QSuper Balanced8.3%

Chant West senior investment research manager Mano Mohankumar said Australians should be looking at the long-term returns when comparing super funds because super is an extremely long-term investment.

"Certainly look at what your fund delivered in 2020, but it's far more important to know what its long-term objectives are and whether it's achieving them," he said.

With the share market falls in March last year, the median growth super fund ended 2020 with a return of 3.7%. The top-performing funds for 2020 returned above 8.0% for members.

Mohankumar said Australians should be happy with how super funds have performed over the long term and confident their retirement savings are growing.

"Over the longest period we can measure, Australia's major super funds have delivered on their promises to members, growing their wealth in real terms while protecting them from undue risk. That's a great achievement," said Mohankumar.

"Even looking at the past 20 years, which now includes three major share market downturns – the 'tech wreck' in 2001-2003, the GFC in 2007-2009 and COVID-19 in 2020 – super funds have returned 6.7% p.a., which is still comfortably ahead of the typical return objective."

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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