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In this article you can discover the top 10 performing High Growth pension funds over 1 year and 10 years. We recommend that you also read our explanatory article Introduction to SuperGuide’s top 10 performing super fund lists which can help you understand how to compare the different risk categories that super investment options sit within.
What is a High Growth investment option?
Investment options with an 81–95% allocation to growth assets are termed High Growth by Chant West, a research company that has been analysing super fund performance for more than 20 years.
High Growth investment options may appeal to people who want the high return opportunities of growth assets with the slight cushioning effect of a small exposure to defensive assets.
Note: Investments such as shares, property, infrastructure and private equity are referred to as growth assets for their ability to produce strong returns over the long term, but they are more likely to experience volatility (and even negative returns) in shorter timeframes. Conversely, assets like cash and fixed interest are referred to as defensive assets for their ability to defend against volatility, but generally cannot produce high returns over long periods of time.
How does a High Growth investment option behave?
In the short term, investment options in the High Growth risk category may experience more volatility than a Growth-style investment, but less volatility than an All Growth-style investment.
In the long term, a High Growth-style investment option will generally grow more than a Growth-style investment option but not as much as an All Growth-style investment option.
Top 10 High Growth investment options (pension funds): 1 year to June 2020
| Super fund | Investment option | Return |
|---|---|---|
| Suncorp | Multi-Manager High Growth | 3.7% |
| UniSuper | Growth | 1.8% |
| Vision Super | Growth | 1.6% |
| First State Super | High Growth | 1.4% |
| BUSSQ | High Growth | 1.2% |
| Australian Ethical | Growth | 0.9% |
| Catholic Super | Aggressive | 0.7% |
| AustralianSuper | High Growth | 0.7% |
| Hostplus | Shares Plus | 0.7% |
| LGIAsuper | Aggressive | 0.6% |
Source: Chant West. The top 10 is limited to High Growth options with assets of $1 billion or more. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
- Pension fund rankings: All Growth category (96–100%)
- Pension fund rankings: High Growth category (81–95%)
- Pension fund rankings: Growth category (61–80%)
- Pension fund rankings: Balanced category (41–60%)
- Pension fund rankings: Conservative category (21–40%)
2019/20 was a challenging financial year for investing and the global economy in general, and the median 1 year return for High Growth investment options across the board was -0.8%. (Median returns track the mid-point of all contenders in any one category and are good way to add context to what you’re looking at. You can see the median returns of all risk categories over a broad range of timeframes here).
Playing the long game
It’s important to keep an eye on how your pension is performing for you year to year (and interesting to see how other funds have performed), but for most people, superannuation will be the longest-held investment we ever have, and our lens on super should reflect that.
Longer-term figures are more significant because they incorporate the ups and downs over that entire period, and allow us to see which investment managers can consistently deliver superior performance, regardless of changing external conditions.
Top 10 High Growth investment options (pension funds): 10 years to June 2020
| Super fund | Investment option | Return (% per yr) |
|---|---|---|
| QSuper | Aggressive | 10.7% |
| Cbus | High Growth | 10.6% |
| Hostplus | Shares Plus | 10.5% |
| AustralianSuper | High Growth | 10.4% |
| UniSuper | Growth | 10.4% |
| Catholic Super | Aggressive | 10.3% |
| First State Super | High Growth | 10.3% |
| Australian Ethical | Growth | 10.2% |
| Legal Super | High Growth | 10.1% |
| BUSSQ | High Growth | 10.0% |
Source: Chant West. The top 10 is limited to High Growth options with assets of $1 billion or more. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
Again median figures can provide good context. In the ten-year period to June 2020, High Growth investment options as a category delivered a median return of 9.7%.
A small difference in performance makes a big difference over time
Although the difference between the top performer and the median may not seem that significant (1.0% per year), the difference builds up significantly over time due to compounding. We have developed the SuperGuide Super fees and returns calculator to help readers understand the difference the fees they pay and projected returns may make over time.
For example, for a 67-year-old with $500,000 in super achieving 10.7% per year, their super balance would grow to approximately $1,606,681 by age 85 (assuming 0.8% in fees and not withdrawing any super) .
All other things being equal, achieving 9.7% instead would mean a super balance of approximately $1,356,188 – a difference of $250,493, or approximately 16% less.
But don’t forget sequencing risk
When you are nearing or in retirement it is important to allow for sequencing risk, particularly if you need to draw down a significant part of your super balance. Learn more in SuperGuide article 5 ways sequencing risk affects your retirement.
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