How MySuper Funds performed over the June Quarter
02 Sept 2016
Did your employer choose your super fund for you? If so, chances are you have a MySuper Fund. Discover which ones delivered the highest returns over the June Quarter…
In their latest MySuper Statistics report, the Australian Prudential Regulation Authority (APRA) revealed the net returns of most MySuper funds over the June Quarter.
This net return figure = Reported quarterly net investment return – Calculated non-investment related fees, costs and taxes for that quarter
MySuper funds offer two main investment strategies:
- Single diversified strategy: The risk level (high, medium, low) of the fund remains the same throughout its life. It does this by keeping its diversified asset allocation consistent. For example, a medium to high risk fund might always invest with 70% in growth assets (riskier, e.g. shares and property) and 30% in defensive assets (lower risk, e.g. cash and bonds).
- Lifecycle strategy: The risk level of the fund changes as the years go by. Typically, the fund will have a high allocation of growth assets when you’re young, but when you’re older it steers your money towards more defensive investments. The general idea behind this strategy is to be more protective of your nest egg when you’re older because you’ll have less time for the fund to bounce back from any downturns such as a stock market crash. But, this strategy isn’t for everyone.
Below, we report the top performers of the June Quarter for both of these strategies.
Top 10 June Quarter Returns – Single Investment Strategy Funds
For MySuper funds with a single investment strategy, the average net return of the June Quarter 2016 was 2.56%.
These were the top 10 performers:
| MySuper product name | Fund trustee | Net return % |
|---|---|---|
| UniSuper Balanced | Unisuper Ltd | 4.14 |
| MySuper | Prime Super Pty Ltd | 4.10 |
| Balanced option | Host-Plus Pty. Limited | 3.98 |
| max Super MySuper | Equity Trustees Limited | 3.79 |
| MyCatholicSuper | CSF Pty Limited | 3.78 |
| NSF MySuper | NSF Nominees Pty. Limited | 3.35 |
| AMG MySuper | Diversa Trustees Limited | 3.35 |
| MySuper Balanced | Energy Industries Superannuation Scheme Pty Ltd | 3.33 |
| IOOF MySuper | I.O.O.F. Investment Management Limited | 3.32 |
| Trustee Super Balanced | Rei Superannuation Fund Pty Limited | 3.26 |
Source: APRA
Top June Quarter Returns – Lifecycle Strategy Funds
Across all lifecycle strategy funds, the average net return of the June Quarter 2016 was 2.51%.
Since each MySuper lifecycle product has a handful of different lifecycle funds, instead of displaying the top 10 lifecycle funds below, we’ve displayed the MySuper products that had one or more lifecycle funds achieving a 3% net return or better.
Out of 208 lifecycle funds that reported their net returns to APRA, a total of 46 achieved 3% or better. We’ve listed these below.
Top lifecycle strategy performers (net return of 3% or greater over June Quarter):
- QSuper Lifetime: 6 Lifecycle funds achieved over 3%
- Aspire 2 Group: 4.38%
- Aspire 1 Group: 4.34%
- Outlook: 4.32%
- Focus 1 Group: 3.87%
- Focus 2 Group: 3.62%
- Focus 3 Group: 3.35%
- Aon MySuper: 10 Lifecycle funds achieved over 3%
- Aon MySuper High Growth: 3.85%
- Aon MySuper 43: 3.76%
- Aon MySuper 44: 3.67%
- Aon Mysuper 45: 3.59%
- Aon MySuper 46: 3.50%
- Aon MySuper 47: 3.41%
- Aon MySuper 48: 3.32%
- Aon MySuper 49: 3.23%
- Aon MySuper 50: 3.15%
- Aon MySuper 51: 3.06%
- Suncorp Lifestage Funds: 8 lifecycle funds achieved over 3%
- Lifestage Fund 1995_1999: 3.76%
- Lifestage Fund 1990_1994: 3.72%
- Lifestage Fund 2000_2004: 3.72%
- Lifestage Fund 1985_1989: 3.68%
- Lifestage Fund 1980_1984: 3.67%
- Lifestage Fund 1975_1979: 3.61%
- Lifestage Fund 1970_1974: 3.41%
- Lifestage Fund 1965_1969: 3.13%
- ANZ Smart Choice Super For QBE Management Services and their Employees: 4 lifecycle funds achieved over 3%
- ANZ Smart Choice Super 1990s: 3.66%
- ANZ Smart Choice Super 1980s: 3.60%
- ANZ Smart Choice Super 1970s: 3.46%
- ANZ Smart Choice Super 1960s: 3.19%
- ANZ Smart Choice Super: 4 lifecycle funds achieved over 3%
- ANZ Smart Choice Super 1990s: 3.65%
- ANZ Smart Choice Super 1980s: 3.59%
- ANZ Smart Choice Super 1970s: 3.45%
- ANZ Smart Choice Super 1960s: 3.18%
- Colonial First State FirstChoice Superannuation Trust: 8 lifecycle funds achieved over 3%
- FirstChoice Lifestage 1965-69: 3.40%
- FirstChoice Lifestage 1970-74: 3.37%
- FirstChoice Lifestage 1995-99: 3.36%
- FirstChoice Lifestage 1990-94: 3.32%
- FirstChoice Lifestage 1980-84: 3.31%
- FirstChoice Lifestage 1985-89: 3.31%
- FirstChoice Lifestage 1975-79: 3.30%
- FirstChoice Lifestage 1960-64: 3.01%
- Virgin Super Essentials: 2 lifecycle funds achieved over 3%
- Life Stage Tracker Balanced Under 40S Mix: 3.29%
- Life Stage Tracker Balanced 40S Mix: 3.15%
- Bendigo MySuper: 1 lifecycle fund achieved over 3%
- Bendigo Growth Index Fund: 3.23%
- Guild Retirement Fund (MySuper): 1 lifecycle fund achieved over 3%
- Building: 3.11%
- Glidepath: 1 lifecycle fund achieved over 3%
- Take Off: 3.11%
- Commonwealth Essential Super: 1 lifecycle fund achieved 3%
- Essential Super Lifestage 1980’s option: 3.00%
Risk Level: High vs Medium vs Low
Different super funds have varying levels of risk. As such, they have different risk labels – e.g. high risk, medium risk, medium to high risk etc.
Using APRA’s MySuper data, we can compare the quarterly returns of the MySuper funds between the different risk levels.
Single investment strategy funds
| Risk Label | Number of Funds | Average net return |
|---|---|---|
| Very High | 1 | 2.20% |
| High | 27 | 2.71% |
| Medium to High | 43 | 2.48% |
| Medium | 13 | 2.52% |
Source: APRA. Averages Calculated by CANSTAR
Lifecycle strategy funds
| Risk Label | Number of Funds | Average net return |
|---|---|---|
| High | 53 | 2.84% |
| Medium to High | 76 | 2.63% |
| Medium | 37 | 2.40% |
| Low to Medium | 31 | 1.97% |
| Low | 7 | 2.08% |
| Very Low | 4 | 1.70% |
Source: APRA. Averages Calculated by Canstar
Fund type: Industry vs Retail vs Public Sector vs Corporate
Using the quarterly MySuper returns data, we can also see how the different fund types matched up.
Single investment strategy funds
| Fund Type | Number of Funds | Average net return |
|---|---|---|
| Industry | 41 | 2.68% |
| Retail | 24 | 2.41% |
| Corporate | 13 | 2.49% |
| Public Sector | 6 | 2.51% |
Source: APRA. Averages Calculated by Canstar
Lifecycle strategy funds
| Fund Type | Number of Funds | Average net return |
|---|---|---|
| Retail | 174 | 2.50% |
| Industry | 16 | 2.48% |
| Public Sector | 12 | 3.00% |
| Corporate | 7 | 2.08% |
Source: APRA. Averages Calculated by Canstar
Compare Superannuation Funds with Canstar
If you’re comparing Superannuation funds, the comparison table below displays some of the products currently available on Canstar’s database for Australians aged 30-39 with a balance of up to $55,000, sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Use Canstar’s superannuation comparison selector to view a wider range of super funds.
Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology that matches the age group you selected.
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