Super success for fund

HOSTPLUS has topped the tables as the best balanced superannuation fund in Australia for returns in both the past 12 months and past 10 years, according to Superratings analysis.

The Hostplus Balanced fund, which delivered a 1.6 per cent return in the past year and a 9.7 per cent return in the past 10 years, outpaced all others.

Coming in second place was the Qantas Super Gateway - Growth fund, which delivered 0.6 per cent growth in the past 12 months.

This was followed by Christian Super - Myethicalsuper, which returned 0.5 per cent to members in the past year.

The results come at a challenging time for superannuation funds, with the majority delivering nil or negative returns to members in the past year as asset values tumbled.

Superratings noted that although many funds closed out the year in the red, there had been some small recovery in July, with median balanced options delivering a 0.9 per cent rally in the first 11 days of July.

Hostplus chief executive David Elia said the chart toping performance of the fund was “a testament to Hostplus’s active investment approach, especially in navigating volatile markets”.

However, Superratings noted superannuation should best be seen as a long-term performance test, noting oneyear returns were “not the full story”.

“This is particularly important to emphasise given the unprecedented levels of volatility we have seen since the beginning of the pandemic,” Super

Ratngs said.

Hostplus topped the tables for 10-year returns, delivering 9.7 per cent.

This was followed by Australiansuper - Balanced, which returned 9.3 per cent.

However, in the past 12 months Australiansuper - Balanced members would have seen a 2.7 negative return on their retirement savings.

In third place is Australian Retirement Trust - Super Savings - Balanced, which rewarded members with a 9 per cent return over the past 10 years.

On average superannuation funds have returned 7 per cent per annum since compulsory super was established in 1992.

Superratings executive director Kirby Rappell said some super funds had been hit with negative returns in 2022, “the benefits of diversification have shone through” for some investment managers.

“When we compare returns for equity, bond and listed property markets to balanced style portfolios among super funds, these results should be reassuring to members,” he said. “Superannuation is a long-term investment and patience remains key. For those Australians under 50, the recent market volatility is not expected to have any impact on their retirement. This year’s results are just one out of a 30 to 40 year investment for younger Australians.”

However, he said the recent falls were more concerning for “those nearing retirement”.

“The sobering result for this year is likely to be those members invested in diversified fixed interest, with rising bond yields resulting in capital losses for members in an area often considered defensive,” he said.