UPDATED: Top Performing Super Funds On Canstar’s Database

Canstar has identified the best performing super funds on its database for annual investment returns over seven years, three years and one year to 30 June 2018.

Superannuation can play an extremely important role in securing a financially stable future. While your super balance can grow exponentially over time as you or your employer make contributions and your investments grow in value, the year-on-year returns will vary, and in some cases may even be negative.

There are many factors to consider when choosing a super fund, such as whether the insurance offering is suitable for you and the education and advice on offer. Past performance is an important consideration to take into account when choosing a super fund because it gives an indication of what a fund has been capable of delivering in the past through varied market conditions.

With this in mind, Canstar has prepared a list of the top-performing super funds over the last seven years, three years and one year to 30 June 2018.

Please note that these performance figures reflect net investment performance – i.e. returns minus investment tax, investment management fees, the maximum applicable ongoing management fees and membership fees.

Top performing super funds: seven-year returns (average per annum)

The following table contains a snapshot of superannuation funds in Canstar’s database based on someone aged 40-49. This table has been sorted by seven-year average annual performance (highest to lowest).

Please note that the performance information shown in the table is for the investment option used by Canstar in rating the superannuation product. Check upfront with your super provider and read the PDS to confirm whether any particular fund meets your needs before deciding to commit to it.

Also note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

To view the past performance of all super funds rated by Canstar, use our comparison tool:

Compare Superannuation Funds

Top performing super funds: three-year returns (average per annum)

The following table contains a snapshot of superannuation funds in Canstar’s database based on someone aged 40-49. This table has been sorted by three-year average annual performance (highest to lowest).

Please note the performance information shown in the table is for the investment option used by Canstar in rating of the superannuation product. Check upfront with your super provider and read the PDS to confirm whether any particular fund meets your needs before deciding to commit to it.

Also note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

To view the past performance of all super funds rated by Canstar, use our comparison tool:

Compare Superannuation Funds with Canstar

Top performing super funds: one-year return

The following table contains details of the superannuation funds in Canstar’s database based on someone aged 40-49. This table has been sorted by one-year performance (highest to lowest).

Please note that the performance information shown in the table is for the investment option used by Canstar in rating the superannuation product. Check upfront with your super provider and read the PDS to confirm whether any particular fund meets your needs before deciding to commit to it.

Also note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.

To view the past performance of all super funds, rated by Canstar, use our comparison tool:

Compare Superannuation Funds with Canstar

Why is performance important for super funds?

Superannuation is all about setting you up for the future, providing you with a large enough nest egg so that you can retire in comfort. It’s important then, that while you’re still working, your super is working for you. The investment return that your super makes, its performance, is the key factor in this.

A small difference in average super performance, as little as 1%, can really add up over the years:

Example: The Difference 1% Annual Investment Earnings Could Make on End Superannuation Balance
Age 25 years old 25 years old 25 years old
Income $50,000 indexed at 2.5% $50,000 indexed at 2.5% $50,000 indexed at 2.5%
Superannuation Earnings 6% per annum 7% per annum 8% per annum
Annual Fees 1% of balance 1% of balance 1% of balance
Account Balance at age 65 $884,701 $1,094,743 $1,410,203
Source: www.canstar.com.au. Starting balance of $6,100 based on the average balance for 15 to 24 year olds taken from the Australian Bureau of Statistics (2015-16). Contributions based on the Super Guarantee percentages for 2018/19 to 2027/28. Tax on investment earnings assumes 5.8% and is taken from ASIC’s MoneySmart website where it represents an assumption for a ‘Balanced’ investment option (June, 2018). Default insurance premiums were not considered in this example. Please note that all information about performance returns is for illustration purposes only. Actual returns and the value of your investment may fall as well as rise from year to year. This example does not take such variations into account.

As you can see from the table above, a small 1% difference in the performance of investments within super per annum can create a massive difference in the amount you have when you retire.

That’s why when looking at a super fund’s past investment success, simply looking at a 12-month difference isn’t enough. It is a better idea to look at that fund’s performance over many years.

And remember – demonstrating consistent returns every-year is more important than having one or two amazing years of investment performance. If your investment returns within super are lower than average over a period of five-years or more, then you might want to consider other options.

Canstar can help you compare available super funds, so you can see which ones might suit you.

Compare Superannuation

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