Super fund performance: Financial years (to June 2018)

“Share markets have been remarkably resilient despite fears about a potential US-China trade war, political tension between North Korea and the US and continuing uncertainty about the pace and timing of interest rate increases.

“Over every timeframe, all risk categories have met their long-term return objectives. Most growth funds aim to beat inflation by 3% to 4% a year. We now have data going back 26 years to July 1992, the start of compulsory super. Over that period, the annualised return is 8.3% and the annual CPI increase is 2.5%, giving a real return of 5.8% per annum – well above that 3% to 4% target.

“Returns are important but so is risk, and most funds also set themselves a risk objective. Risk is normally expressed as the chance of a negative return, and typically a growth fund would aim to post no more than one negative return in five years on average.”

The table and chart below show the annual financial year performance of the median growth fund over the 26 financial years since the introduction of compulsory super. It is inevitable that growth funds would have some years with negative returns, but you would expect less than six negative years over 26 years. In reality there have been only three.

Super fund performance – Financial years (1992/1993 to 2017/2018)

Financial year	Return (%)
2017/2018	9.2%
2016/2017	10.8%
2015/2016	3.0%
2014/2015	9.8%
2013/2014	12.8%
2012/2013	15.6%
2011/2012	0.5%
2010/2011	9.2%
2009/2010	10.4%
2008/2009	-12.9%
2007/2008	-6.95
2006/2007	15.6%
2005/2006	14.7%
2004/2005	13.1%
2003/2004	13.5%
2002/2003	0.3%
2001/2002	-3.3%
2000/2001	6%
1999/2000	12.7%
1998/1999	8.6%
1997/1998	10%
1996/1997	19.4%
1995/1996	10.7%
1994/1995	7.4%
1993/1994	7.1%
1992/1993	11.4%

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

Mano continues, “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 an achievement the funds should be proud of, and they should be making sure their members are aware of it, too.”

The following table shows the super performance across various timeframes for five investment categories to 30 June 2018.

Super fund performance (Results to 30 June 2018)

Fund Category	Growth Assets (%)	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
All Growth	96-100	12.5	9.1	11.3	10.4	7.1	8.4
High Growth	81-95	11.4	8.9	10.6	9.8	6.9	8.2
Growth	61-80	9.2	7.4	9.1	8.7	6.6	7.8
Balanced	41-60	7.0	6.2	7.3	7.1	5.9	6.6
Conservative	21-40	5.0	4.8	5.6	5.8	5.3	6.0

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

The following tables show the super performance across various timeframes for five investment categories for the previous two financial years.

Super fund performance (Results to 30 June 2017)

Fund Category	Growth Assets (%)	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
All Growth	100	14.8	9.1	12.9	10.2	4.4	7.2
High Growth	81-100	12.8	8.7	11.8	9.6	4.7	7.4
Growth	61-80	10.7	7.6	10.4	8.8	5.1	7.2
Balanced	41-60	8.1	6.5	8.2	7.3	4.8	6.4
Conservative	21-40	5.4	5.0	6.3	6.1	4.8	5.8

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

Super fund performance (Results to 30 June 2016)

Fund Category	Growth Assets (%)	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
All Growth	100	0.2	9.6	9.2	9.6	4.8	5.1
High Growth	81-100	2.8	9.3	9.0	9.4	5.2	6.3
Growth	61-80	3.0	8.6	8.2	8.8	5.3	6.2
Balanced	41-60	3.1	7.0	7.1	7.7	5.1	5.7
Conservative	21-40	3.6	5.8	5.9	6.6	5.1	5.5

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

The following tables show the same information but grouped by investment option rather than by financial year.

Super fund performance – All growth investment options

High growth investment options have 96-100% invested in growth assets

Financial year	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
2017/2018	12.5	9.1	11.3	10.4	7.1	8.4
2016/2017	14.8	9.1	12.9	10.2	4.4	7.2
2015/2016	0.2	9.6	9.2	9.6	4.8	5.1

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

Super fund performance – High growth investment options

High growth investment options have 81-95% invested in growth assets

Financial year	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
2017/2018	11.4	8.9	10.6	9.8	6.9	8.2
2016/2017	12.8	8.7	11.8	9.6	4.7	7.4
2015/2016	2.8	9.3	9.0	9.4	5.2	6.3

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

Super fund performance – Growth investment options

Growth investment options have 61-80% invested in growth assets

Financial year	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
2017/2018	9.2	7.4	9.1	8.7	6.6	7.8
2016/2017	10.7	7.6	10.4	8.8	5.1	7.2
2015/2016	3.0	8.6	8.2	8.8	5.3	6.2

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

Super fund performance – Balanced investment options

Balanced investment options have 41-60% invested in growth assets

Financial year	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
2017/2018	7.0	6.2	7.3	7.1	5.9	6.6
2016/2017	8.1	6.5	8.2	7.3	4.8	6.4
2015/2016	3.1	7.0	7.1	7.7	5.1	5.7

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

Super fund performance – Conservative investment options

Conservative investment options have 21-40% invested in growth assets

Financial year	1 year (%)	3 years (% per year)	5 years (% per year)	7 years (% per year)	10 years (% per year)	15 years (% per year)
2017/2018	5.0	4.8	5.6	5.8	5.3	6.0
2016/2017	5.4	5.0	6.3	6.1	4.8	5.8
2015/2016	3.6	5.8	5.9	6.6	5.1	5.5

Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.

To learn more about investment performance across financial years, see the following SuperGuide articles:

To learn more about investment performance across calendar years, see the following SuperGuide articles:

To learn about super investing strategies, see the following SuperGuide articles: