Super fund blitzes the competition

Of all the super funds in Australia, one is outperforming the pack by a significant margin.

AustralianSuper has posted an 11.08 per cent return for the past financial year – beating the typical return of 9.1 per cent produced by the top 50 superannuation funds.

And this performance is no one-off. AusSuper’s balanced investment option, worth around $140 billion and where 90 per cent of its members have their money, has returned an average annual return of 10.51 per cent over the past five years.

SuperRatings estimates the average returns over the same period at around 8.7 per cent.

With around 2.2 million members, AusSuper is Australia’s largest super fund.

The fund’s deputy chief executive, Mark Delaney, said the drivers for the balanced option’s high performance were more focus on listed equity markets and less on lower-returning defensive asset classes such as fixed income and cash.

According to SuperRatings’ chief executive officer Kirby Rappell, investment in infrastructure and other “alternatives” also continued to deliver good returns for AusSuper.

While AusSuper has performed strongly for half a decade, Mr Delaney is cautious about fund members’ expectations, saying that although the fund has seen a prolonged period of strong growth, there’s always the possibility that future markets could be more less productive.

“Members should always be focused on longer-term results as fluctuations in returns are expected,” said Mr Delaney.

He also said that global markets had delivered better results than everyone expected, with political uncertainty and trade protectionism not having “a sustained negative affect on markets”.

“We will be keeping an eye on key policy-makers, particularly the US Federal Reserve, in relation to interest rates, while also monitoring any action in relation to tariffs or other measures which may affect global trade,” he said.

Are you happy with your super fund? Would news such as this encourage you to switch funds?

Related articles:
Do I really need $1 million to retire?
How is your super fund stacking up?
Best time to plan for your retirement

Written by Leon Della Bosca

Leon Della Bosca has worked in publishing and media in one form or another for around 25 years. He's a voracious reader, word spinner and art, writing, design, painting, drawing, travel and photography enthusiast. You'll often find him roaming through galleries or exploring the streets of his beloved Melbourne and surrounding suburbs, sketchpad or notebook in hand, smiling.


Do I really need $1 million to retire?

It's never too early to start working out how much you need for your retirement.

How is your super fund stacking up?

Industry super funds continue to outperform retail funds and the gap is widening.

When is the best time to plan for your retirement?

Many retire unexpectedly, so the sooner planning for retirement begins, the better.