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.
UniSuper Balanced took out the top spot with a stellar return of 18.4%, the brightest star among many. All 10 top performing funds returned 16% or more.
In the last few weeks SuperRatings and SelectingSuper have announced the winners of their Fund of the Year Awards.
According to the 10/30/60 rule, 60% of your retirement income comes from the investment returns you achieve during your retirement, and underlines how important it is to continue to earn a good investment return in your retirement years.
Being in a good performing super fund is one of the key factors for growing your super balance. The recent Productivity Commission (PC) review of superannuation identified that members of consistently poor performing funds would have substantially lower super balances at retirement.
QSuper and UniSuper share the top spot for 2018/19, returning 9.9%, well ahead of the third placed MediaSuper with 8.8%. Unlike the previous year when industry funds took out all top 10 positions, retail fund IOOF (+8.2%) entered the list at number 7.
The gold medal goes to AustralianSuper, the country’s largest super fund, with an average annual return of 9.8% per year for the last 10 years.
Investors are enjoying an explosion in the range of sustainable investment options in the market. Between 2016 and 2017 there was a 340% rise in funds that screen assets for their sustainability features, or lack thereof.
APRA statistics released this week show retail funds have lost nearly $23 billion in value since December 2017, while over the same period industry funds grew by nearly $40 billion. This represents a change in value of assets of -6% for retail funds and +4% for industry funds.
We find it hard to read forms and to understand risk, so we stick with what we know.
A key recommendation in the new Productivity Commission report, the idea of employees being given a ‘best in show’ list for the top 10 performing super funds has been met with a hostile response from the super industry.