Top 10 performing super funds for 2011 calendar year

Note: For the top-performing super funds of the 2012/2013 financial year, and for the past 10 years, see SuperGuide article Top 10 performing super funds for 2012/2013 year, and for past 10 years.

Investment returns/losses for the growth investment options within super funds ranged from a low of -4.8% through to a high of 2.6%, according to figures released by rating company Chant West.

The Top 10 performing super funds for the 2011 calendar year (January 2011 to December 2011), and the top 10 super funds for the seven-year period to 31 December 2011 are listed in the tables below.

The performance data is based on Chant West figures, and the table ranking is based on individual investment options offered by a superannuation fund, and the investment options involved in the ranking process look after assets worth more than $500 million.

Note: Based on Chant West’s rankings, a growth fund typically holds between 61% and 80% in growth assets such as shares and property. Some super funds may describe this type of asset allocation as a ‘balanced’ investment option, and this type of investment option is the typical default option for super funds (where you don’t actively choose your investment options for your super account). At least 80% of all super fund members have their superannuation money invested via a growth or balanced investment option. If you don’t actively choose your investment options for your super account, then your retirement savings will be invested in the default option. If you do actively choose your investment option/s then your super savings may be invested in another type of investment option such as conservative or high growth.

Top 10 performing super funds for 12 months to 31 December 2011

The top 10 performing growth super funds consist only of not-for-profit funds (seven industry funds, two public sector funds and one corporate super fund).

Top 10 Performing Growth Funds* for 1 year to December 2011 (%)
Super fund and investment option 1 year return
1. QSuper Balanced 2.6%
2. Health Super Medium-Term Growth 1.7%
3. Vision Super Balanced Growth 1.5%
4. RecruitmentSuper Growth 1.2%
5. CBA OSF Mix 70 0.9%
6. BUSS (Q) Balanced Growth 0.9%
7. HOSTPLUS Balanced 0.2%
8. CareSuper Balanced 0.0%
9. HESTA Core Pool -0.1%
10. Equipsuper Balanced Growth -0.2%

Source: Chant West, 23 January 2012 media release (www.chantwest.com.au)

*Performance is net of investment fees and taxes. It does not include administration fees or adviser commissions..

Top 10 performing super funds over 7 years – industry funds win, again

A poor investment performance for one year doesn’t doom you for a poverty-stricken retirement, and likewise a great investment performance for one year does not create a healthy retirement balance many years down the track. What then does this mean for anyone considering whether the super fund they have is the best-performing super fund over the long term?

In 2010, Warren Chant, principal of rating company Chant West, gave some practical advice for super fund members. He said: “From the member’s point of view, I think the message – now more than ever – is to keep an eye on your fund’s performance regularly, and at least every year. Don’t be too concerned if it underperforms in the short term, but if it consistently underperforms over a few years, try to find out why and maybe look at some alternatives.”

Upon the release of the 2011 calendar year results, Chant West reports that the impact of the Global Financial Crisis (GFC) still dominates the medium-term and longer term results. Chant says:

“… there were four negative years out of the [past]19, which averages one year in almost five, so the risk objective was not quite met, but very nearly. Again, though, it’s worth noting that three of the four negative years occurred in the past decade, which included not only the GFC and before that the ‘tech wreck’. In the previous nine years, only one was negative. So when we talk about objectives like ‘a negative return once in every 5 years’, it’s important to remember that we’re talking averages, not a predictable regular occurrence. That’s why you should really look back as far as you can to see the long-term picture and make judgements.”

Industry super funds dominate in Chant West’s table for the top 10 performing super funds over 7 years, although a corporate super fund – CBA OSF Mix 70 – tops the list, with an average annual return over 7 years of 6%.

Note: The cash rate for the same 7-year period is also 5.6%.

Top 10 Performing Growth Funds* for 7 years to December 2011 (%)
Super fund and investment option 7 years (% each year)
1. CBA OSF Mix 70 6.0%
2. Health Super Medium-Term Growth 5.4%
3. Catholic Super Balanced 5.3%
4. QSuper Balanced 5.2%
5. BUSS (Q) Balanced Growth 5.1%
6. Rest Core 5.1%
7. CareSuper Balanced 5.1%
8. NGS Super Diversified 5.0%
9. Telstra Super Balanced 4.9%
10. AustralianSuper Balanced 4.8%

Source: Chant West, 23 January 2012 media release (www.chantwest.com.au)

*Performance is net of investment fees and taxes. It does not include administration fees or adviser commissions. The performance data is based on Chant West figures, and the table ranking is based on individual investment options offered by a superannuation fund, and the investment options involved in the ranking process look after assets worth more than $500 million.

© Copyright Trish Power 2009-2014

Copyright for this article belongs to Trish Power, and cannot be reproduced without express and specific consent.


IMPORTANT: SuperGuide does not provide financial advice. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Readers need to seek independent advice about their personal circumstances.

Comments

  1. Humphrey Hollins says:

    I cant believe how poorly these funds perform, most are making less than bank interest.I invested half my cash in the stock market and left half in the bank at 5.65%.
    I bought mostly blue chips in February 2012 and I am 31% in front plus the dividends.
    Why do these funds perform so badly?

  2. How can you redress the current situation where 4 public authorities (Superannuation Complaints Tribunal, Commonwealth Ombudsman, APRA and ASIC) claim that dealing with identifiable Superannuation Account balance errors are outside their charter to force superannuation funds address a members complaint having identified such errors without doubt with documentary evidence?

    • Hi Harry
      Thanks for your comments. A possible course of action is to send a letter or email to Minister Shorten’s office regarding your situation and to highlight the gaps in the law.
      Regards
      Trish

  3. were is state super on the list

  4. L. Mackovski says:

    Can you comment or give me an idea about performents of the AUSTRALIAN SUPER please??

  5. CBA mix 70 fees are 0.2873% , bottom five are on the SMH website checked a couple out fees 2.5%. How will they outperform mix 70 ? no chance…over the long term.

  6. The fees on the industry funds above are around 0.6% , with retail funds charging 2%+ they will always underperform by 1.4% , blind Freddy says hello :) If you think paying higher fees gets you higher performance think again.

  7. AlanM, you should check the Industry Super Funds if you want to see who are the worst performers. There has been a run on Australian Super in recent months. They have a problem with “unlisted assets” which APRA exempt them from reporting on.

  8. I suspect most of those poor performing funds that won’t provide info are in the retail sector. Makes sense I suppose because that’s their business – wealth transfer and erosion of working Australian’s retirement savings.

  9. I’d like to see the worst performing funds too

    • Hi Marc
      Thanks for your comments. I have requested the poor performing fund figures from several sources and no one is willing to release that information. Occasionally that type of information is leaked and, when that occurs, you may be able to read it in one of the daily newspapers.
      Regards
      Trish

Leave a Comment

*