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Against a background of extreme market volatility and steep sharemarket falls, super funds managed to contain their losses in the year to June 2022.
After the exceptional 18% gain in the 2021 financial year, the median Growth fund fell 3.3% in the year to June 2022. The losses all came in the final months, after the strong gain of 13.4% in calendar year 2021.
Super fund performance: Financial years (1992–93 to 2021–22)
The table and chart below show the annual financial year performance of the median Growth fund over the 30 financial years since the introduction of compulsory super. Growth funds typically aim to post no more than one negative return every five years, which translates to six negative years over the past 30. As it happens, they have had only five.
| Financial year | Return (%) |
|---|---|
| 2021–22 | -3.3% |
| 2020–21 | 18.0% |
| 2019–20 | -0.6% |
| 2018–19 | 7.0% |
| 2017–18 | 9.4% |
| 2016–17 | 10.8% |
| 2015–16 | 3.0% |
| 2014–15 | 9.8% |
| 2013–14 | 12.8% |
| 2012–13 | 15.6% |
| 2011–12 | 0.5% |
| 2010–11 | 9.2% |
| 2009–10 | 10.4% |
| 2008–09 | -12.9% |
| 2007–08 | -6.9% |
| 2006–07 | 15.6% |
| 2005–06 | 14.7% |
| 2004–05 | 13.1% |
| 2003–04 | 13.5% |
| 2002–03 | 0.3% |
| 2001–02 | -3.3% |
| 2000–01 | 6.0% |
| 1999–2000 | 12.7% |
| 1998–99 | 8.6% |
| 1997–98 | 10.0% |
| 1996–97 | 19.4% |
| 1995–96 | 10.7% |
| 1994–95 | 7.4% |
| 1993–94 | 7.1% |
| 1992–93 | 11.4% |
Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
The following table shows the super performance across various timeframes for five investment categories as at the end of the latest financial year.
As you can see, all five risk categories posted negative returns in 2021–22, but returns were positive across all timeframes from two to 15 years. All risk categories have also met their long-term return objectives, which typically range from CPI (a measure of inflation) +2% for Conservative funds to CPI +4.25% for All Growth. Over the past 30 years, Growth funds have returned 7.9% per year on average, nearly 2% per year ahead of their long-term objective.
Super fund performance (results to 30 June 2022)
| Fund category | Growth assets (%) | 1 yr (%) | 3 yrs (% per yr) | 5 yrs (% per yr) | 7 yrs (% per yr) | 10 yrs (% per yr) | 15 yrs (% per yr) |
|---|---|---|---|---|---|---|---|
| All Growth | 96–100 | -6.3 | 5.4 | 7.4 | 7.5 | 10.2 | 5.5 |
| High Growth | 81–95 | -4.0 | 5.4 | 6.9 | 7.2 | 9.6 | 5.8 |
| Growth | 61–80 | -3.3 | 4.6 | 6.0 | 6.2 | 8.1 | 5.4 |
| Balanced | 41–60 | -2.6 | 3.3 | 4.6 | 4.9 | 6.5 | 4.7 |
| Conservative | 21–40 | -2.2 | 2.1 | 3.4 | 3.8 | 4.9 | 4.0 |
Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
Super fund performance: Calendar years (1993 to 2021)
For your reference we have also included below the average super fund returns over 29 calendar years.
The table and chart below show the annual calendar year performance of the median Growth fund over the 29 years since the introduction of compulsory super. Growth funds typically aim to post no more than one negative return every five years. As it happens, they have had only four negative years in the past 29, or one in every seven years on average.
| Calendar year | Return (%) |
|---|---|
| 2021 | 13.4% |
| 2020 | 3.7% |
| 2019 | 14.7% |
| 2018 | 0.8% |
| 2017 | 10.8% |
| 2016 | 7.5% |
| 2015 | 5.7% |
| 2014 | 8.5% |
| 2013 | 17.2% |
| 2012 | 12.8% |
| 2011 | -1.9% |
| 2010 | 4.7% |
| 2009 | 15.1% |
| 2008 | -21.5% |
| 2007 | 8% |
| 2006 | 13.8% |
| 2005 | 14.3% |
| 2004 | 15.5% |
| 2003 | 9.2% |
| 2002 | -4.8% |
| 2001 | 4% |
| 2000 | 7.3% |
| 1999 | 10.2% |
| 1998 | 11% |
| 1997 | 14.9% |
| 1996 | 10.8% |
| 1995 | 16.1% |
| 1994 | -3.9% |
| 1993 | 23.9% |
Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
The following table shows the super performance across various timeframes for five investment categories as at the end of the last calendar year.
As you can see, all five traditional risk categories posted positive returns in 2021 and across all time frames. All risk categories have also met their long-term return objectives, which typically range from CPI (a measure of inflation) +2% for Conservative funds to CPI +4.25% for All Growth. Over the past 29 years, Growth funds have returned 8.2% per year on average and the CPI has averaged 2.4% per year, giving a real return of 5.8%.
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Super fund performance (results to 31 December 2021)
| Fund category | Growth assets (%) | 1 yr (%) | 3 yrs (% per yr) | 5 yrs (% per yr) | 7 yrs (% per yr) | 10 yrs (% per yr) | 15 yrs (% per yr) |
|---|---|---|---|---|---|---|---|
| All Growth | 96–100 | 19.4 | 14.4 | 11.0 | 9.9 | 11.7 | 6.7 |
| High Growth | 81–95 | 16.9 | 12.4 | 10.0 | 9.3 | 11.0 | 6.7 |
| Growth | 61–80 | 13.4 | 10.5 | 8.5 | 8.0 | 9.4 | 6.3 |
| Balanced | 41–60 | 9.9 | 7.9 | 6.6 | 6.3 | 7.4 | 5.5 |
| Conservative | 21–40 | 5.7 | 5.4 | 4.8 | 4.7 | 5.6 | 4.8 |
Source: Chant West. Performance is shown net of investment fees and tax, and before administration and adviser commissions.
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