Superannuation is a long-term investment. Those starting in the workforce today at 18 will have 47 years of superannuation contributions and investment returns ahead of them if they retire at 65.
We often hear about the super returns for the latest month, or the top performing funds for the last year, but when looking at choosing a super fund it makes a lot more sense to look at the long-term returns.
Super funds all have slightly different investment strategies and each year one may outperform the others because of a short-term investment tactic, or due to external events such as global politics or the domestic economy. Over time though those funds may not be able to hold that performance consistently and the same investment strategy may mean they lag other funds. In the long run, the funds with the most consistently strong performance will rise to the top and their members will have a significantly wealthier retirement because of it.
We’re grateful to Chant West for providing the following list of top 10 performing growth funds over the last 10 calendar years up to December 2019. Chant West’s growth category includes super fund investment options with 61% to 80% of their assets invested in growth assets.
See also the best performing super funds over 10 financial years.
Top 10 performing growth funds (10 years to December 2019)
Hostplus and AustralianSuper cemented their position in the top two spots with average annual returns over the last 10 years of 9.2% and 9% respectively. The top 10 consists entirely of industry funds, beating all retail and corporate funds.
| Fund and Option | Return per year over 10 years |
|---|---|
| Hostplus Balanced | 9.2% |
| AustralianSuper Balanced | 9.0% |
| UniSuper Balanced | 8.9% |
| Cbus Growth (Cbus MySuper | 8.8% |
| CareSuper Balanced | 8.7% |
| Qsuper Balanced | 8.6% |
| HESTA Core Pool | 8.5% |
| VicSuper Growth (MySuper) | 8.4% |
| Equip Balanced Growth | 8.3% |
| Sunsuper Balanced | 8.3% |
Source: Chant West
Note: The top 10 is limited to growth options with assets of $1 billion or more. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
The median performance for all Growth funds was 7.9% per year over the last decade. Although the difference between the top performing fund and the average doesn’t seem much (1.3% per year), the difference builds up significantly over time due to compounding.
SuperGuide’s Super fees and returns calculator helps illustrate the difference that fees and returns can make over time. For example, a 45-year-old with $250,000 in super and earning $140,000 per year, paying 0.8% in fees and achieving 9.2% per year, could retire at 67 with a super balance of approximately $1,286,992. All other things being equal, achieving 7.9% instead would mean a super balance of approximately $1,030,325 – a difference of $256,667, or almost 20% less.
Top 10 performing growth funds over the long term for previous calendar years
We are also grateful to Chant West for providing the following information on the top 10 performing growth funds over 15 years for the 2018 calendar year, and over 10 years for the 2017, 2016 and 2015 calendar years.
The lists are again dominated by industry funds, with the Telstra Corporate fund the only exception. In notable moves, Hostplus and Australian Super moved to the top of the list, while Rest slipped from the top spot in 2015, 2016 and 2017 to 9th in 2018.
Top 10 performing growth funds (15 years to December 2018)
| Fund and Option | Return per year over 15 years |
|---|---|
| Hostplus Balanced | 7.9% |
| AustralianSuper Balanced | 7.9% |
| Cbus Growth (Cbus MySuper) | 7.9% |
| Catholic Super Balanced (MySuper) | 7.8% |
| CareSuper Balanced | 7.8% |
| Qsuper Balanced | 7.8% |
| UniSuper Balanced | 7.7% |
| BUSSQ Balanced Growth | 7.7% |
| Rest Core | 7.7% |
| Equip Balanced Growth | 7.6% |
Source: Chant West
Top 10 performing growth funds (10 years to December 2017)
| Fund and Option | Return per year over 10 years |
|---|---|
| REST Core | 6.6% |
| QSuper Balanced | 6.3% |
| UniSuper Balanced | 6.3% |
| CareSuper Balanced | 6.2% |
| Catholic Super Balanced (MySuper) | 6.1% |
| Hostplus Balanced | 6.1% |
| Cbus Growth (Cbus MySuper) | 6.1% |
| AustralianSuper Balanced | 6.0% |
| Sunsuper Balanced | 5.8% |
| Telstra Super Balanced | 5.8% |
Source: Chant West
Top 10 performing growth funds (10 years to December 2016)
| Fund and Option | Return per year over 10 years |
|---|---|
| REST Core | 6.4 |
| CareSuper Balanced | 6.3 |
| Cbus Growth (Cbus MySuper) | 6.1 |
| BUSS (Q) Balanced Growth | 6.0 |
| Catholic Super Balanced (MySuper) | 6.0 |
| QSuper Balanced | 6.0 |
| Hostplus Balanced | 6.0 |
| UniSuper Balanced | 5.9 |
| Commonwealth Bank Group Super Balanced | 5.9 |
| AustralianSuper Balanced | 5.8 |
Source: Chant West
Top 10 performing growth funds (10 years to December 2015)
| Fund and Option | Return per year over 10 years |
|---|---|
| REST Core | 6.9 |
| BUSS (Q) Balanced Growth | 6.7 |
| Telstra Super Balanced | 6.7 |
| UniSuper Balanced | 6.6 |
| CareSuper Balanced | 6.6 |
| Catholic Super Balanced (MySuper) | 6.6 |
| Commonwealth Bank Group Super Balanced | 6.6 |
| AustralianSuper Balanced | 6.5 |
| Cbus Growth (Cbus MySuper) | 6.4 |
| QSuper Balanced | 6.4 |
Source: Chant West
Note: The top 10 lists are limited to growth options with assets of $1 billion or more. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
To learn more about investment performance across calendar years, see the following SuperGuide articles:
To learn more about investment performance across financial years, see the following SuperGuide articles:
To learn about super investing strategies, see the following SuperGuide articles:
- How investing in infrastructure boosts your super account
- What are listed and unlisted investments and why does it matter?
- How to choose an investment option for your super pension
- Risk profiling and your investment choice
- Understanding the dynamics on which your super fund invests
- SMSF investment rules: What every trustee should know
- How to create an SMSF investment strategy (including examples)
Note: Past performance is not necessarily a guide to future performance. This information about returns can change and readers should continue to monitor their super’s performance.
Disclaimer: This article is general information only and does not provide any recommendation for any specific super fund. It is important to get independent financial advice when considering what financial products may be suitable for you.
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