Note: This article lists the 30 top-performing pension (retirement) funds over 5 years to 31 December 2016. For the top-performing super funds, see SuperGuide article Super stars! Top 30 super funds over 5 years.
Discovering the best-performing super funds is fascinating reading for any Australian interested in how their super is accumulating. And whenever we publish articles covering this topic, these articles prove very popular among our 2 million or so SuperGuide readers.
Information on the top-performing pension funds however is more difficult to obtain. Pension funds are those pension products/funds that pay out pensions to its members. Thanks to superannuation ratings agency, SuperRatings, we can provide you with the performance data on the 30 top-performing pension funds over a 5-year period to 31 December 2016.
The table below contains the 30 top-performing pension funds, based on the capital stable investment option of allocated pension products/accounts. The capital stable option typically has between 20% and 40% of growth assets (such as shares and property) in its portfolio.
Note: If you are seeking information on the 30 top-performing super funds (that is, those super funds not paying out pensions), then see SuperGuide article Super stars! Top 30 super funds over 5 years.
The top-performing allocated pension capital stable investment option over the 5-year period to 31 December 2016 delivered an average annual return of 8.9%. The obvious question to ask is: which pension fund delivered this top average annual return for the 5-year period. The answer is… Telstra Super.
The Telstra Super RetireAccess Allocated Pension – Conservative investment option delivered this standout performance. It is uncommon for the same pension fund to be the top performer year in and year out but what is quite remarkable is that the Telstra Super RetireAccess AP Conservative investment option was also the number one performer over 7 years to 31 December 2016 (7.9% p.a.), and a top 3 performer over 3 years (6.9% p.a.) and a top 4 performer over 10 years (6.3% p.a.) to 31 December 2016.
Pension fund option, VicSuper Allocated Pension – Capital Stable Option came second over the 5-year period to 31 December 2016, with an average annual return of 8.7% (and fourth over 3 years with 6.9% p.a., and sixth over 7 years with 7.6% p.a., although slipped to 13th over 10 years with 5.7% p.a., which is still a top 20 ranking).
Three super funds delivered an average annual return of 8.4% over 5 years to 31 December 2016: UniSuper Allocated Pension – Capital Stable, AustralianSuper Choice Income Account – Stable, and RBF Allocated Pension – RBF Conservative. More precise data indicated that these 3 super funds came third, fourth and fifth respectively.
See the table below for more information on the top 30 performing pension funds.
Note: While performance data in the table below is shown to one decimal place, rankings are based on more precise, unrounded data. The rounding to one decimal place explains why pension options with the same return are ranked differently.
We would like to thank SuperRatings for providing the data contained in this article. In the table below, Allocated Pension has been shortened to AP in many instances.
At the end of this article, you can find links to other interesting articles, including the top 30 performing super funds for the 5-year period to 31 December 2016, the top-performing asset classes, and the cheapest super funds.
Top 30 allocated pension capital stable (20-40) investment options over 5 years (to 31 December 2016)
|Ranking for 5-year performance||Name of pension fund||Fund type||Anyone can join (Y/N)||5 years: per annum (%)||Fees per $250,000|
|1||Telstra Super RetireAccess AP – Conservative||Corporate||N||8.9%||$1,728|
|2||VicSuper AP – Capital Stable Option||Industry||Y||8.7%||$1,728|
|3||UniSuper AP – Capital Stable||Industry||N||8.4%||$996|
|4||AustralianSuper Choice Income Account – Stable||Industry||Y||8.4%||$1,328|
|5||RBF AP – RBF Conservative||Public sector||N||8.4%||$1,828|
|6||AON MT AP Ess – Moderate – Active||Master Trust||Y||8.3%||$3,136|
|7||CareSuper AP – Capital Stable||Industry||Y||8.2%||$1,806|
|8||HESTA AP – Conservative||Industry||Y||8.1%||$1,341|
|9||HOSTPLUS AP – Capital Stable||Industry||Y||8.1%||$2,065|
|10||MyLife MyPension – Conservative||Industry||Y||8.1%||$1,851|
|11||Energy Super AP – Stable Option||Industry||Y||7.9%||$1,727|
|12||Cbus AP – Conservative||Industry||Y||7.8%||$1,229|
|13||REST AP – Capital Stable||Industry||Y||7.8%||$1,615|
|14||Sunsuper for Life AP – Conservative||Industry||Y||7.7%||$1,633|
|15||Legalsuper AP – Conservative||Industry||Y||7.6%||$1,843|
|16||NGS Super AP – Defensive||Industry||Y||7.6%||$1,665|
|17||Super SA AP – Conservative||Public Sector||N||7.5%||$1,650|
|18||Mine Wealth + Wealth Being Pension – Stable||Industry||Y||7.3%||$1,330|
|19||LUCRF AP – Conservative||Industry||Y||7.2%||$1,278|
|20||Vision Super AP – Conservative||Industry||Y||7.2%||$1,950|
|21||Media Super AP – Stable||Industry||Y||7.2%||$1,290|
|22||Equip AP – Conservative||Industry||Y||7.1%||$1,825|
|23||North AP – North index Defensive||Master Trust||Y||7.1%||$2,291|
|24||Russell iQ Retirement – Russell Defensive Portfolio||Master Trust||Y||6.8%||$2,525|
|25||Mercer PS AP – Moderate Model Choice||Master Trust||Y||6.8%||$5,263|
|26||First State Super AP – Conservative Growth||Industry||Y||6.8%||$1,877|
|27||Mercer Super Trust AP – Mercer Conservative Growth||Master trust||Y||6.7%||$2,710|
|28||Commonwealth Bank Group Super AP – Conservative||Corporate||N||6.7%||$1,104|
|29||GESB Ret Inc AP – Conservative Plan||Public Sector||N||6.7%||$1,150|
|30||CFS-FC Wsale AP – FirstChoice Wsale Conservative||Master Trust||Y||6.6%||$2,400|
|SR50 Capital Stable (20-40) Index||6.8%|
Source: Table created by SuperGuide with data supplied by SuperRatings. The returns quoted in the performance tables are after tax, net of investment management fees (including net of implicit asset-based administration fees). This includes management and administration fees that are deducted before returns are credited to members account. Fees that are deducted directly from accounts, rather than through returns, and disclosed on a member’s statement are not deducted, e.g. fixed dollar member fees.
Table note one: While performance data is shown to one decimal place, rankings are based on more precise, unrounded data.
Table note two: The term 20-40 represents the percentage of growth assets (such as shares and property) in the investment portfolio.
Table note three: Fees per $250,000 balance refers to annual fees on a $250,000 pension account balance as at 31 December 2016, as per the product disclosure statement of the pension product. Fees include percentage-based administration fees, member fees, investment management fees (including performance-based fees) and taxes, but exclude any applicable employer size rebates.
For more information on the top-performing superannuation funds see the following SuperGuide articles: