Check your superannuation: The top-performing funds have been revealed

Australia’s top-performing superannuation funds have been revealed, with members reaping the benefits of an “impressive” year of returns, according to new research.

International technology and Australian banking shares helped drive above-average returns over 2024, investment research group Lonsec’s SuperRatings said.

SuperRatings found the average balanced investment super fund returned 8.8 per cent to members for the year to June 30, while the top-performing options reached double-digits.

Hostplus’ Indexed Balanced was the best performer for balanced strategies for the year to June 30, returning 12.2 per cent.

This was closely followed by Raiz Super’s Moderately Aggressive option and Colonial First State’s Enhanced Index Balanced option, with returns of 12.1 per cent and 11.4 per cent respectively.

“Funds with a higher exposure to shares and listed assets generally outperformed for the year, while those with greater exposure to unlisted property reported more subdued outcomes,” SuperRatings said in its findings.

The top performing MySuper Lifecycle option was Colonial First State Essential Super MySuper — Lifestage 1975-79 at 14.6 per cent.

Lifecycle options are funds that typically move your money from growth in investments when you are young to more conservative investments when you are older.

However, SuperRatings researchers noticed a trend of lifecycle options increasing their exposure to growth assets such as shares, executive director Kirby Rappell said.

“While this has benefited members this year, higher exposure to these assets also comes with increased ups and downs, and we encourage members to learn how their fund’s investment strategy works so they are comfortable with annual and long-term performance outcomes,” Rappell said.

Researchers also found investments with a sustainable focus also outperformed over the year, with Raiz Super’s Emerald investment option reporting the highest return at 14.8 per cent.

Top 10 balanced options over 12 months

1. Hostplus – Indexed Balanced (12.2 per cent)
2. Raiz Super – Moderately Aggressive (12.1 per cent)
3. CFS-FC Wsale Pers – CFS Enhanced Index Balanced (11.4 per cent)
4. ESSSuper – Balanced Growth (11.1 per cent)
5. IOOF Employer Super – MLC MultiSeries 70 (10.9 per cent)
6. Brighter Super – Balanced (10.6 per cent)
7. GESB Super – My GESB Super Plan (10.4 per cent)
8. Qantas Super – Growth (10.1 per cent)
9. Australian Retirement Trust – Super Savings – Balanced (9.9 per cent)
10. MLC MKey Business Super – MLC Balanced (9.6 per cent)

Top 10 balanced options over 10 years

While inspecting annual results can be useful, it should not be the be-all-end-all when considering your super, Rappell said.

“The purpose of superannuation is maximising returns over the long term,” he explained.

“Most of us will have plenty of time until we retire and begin to access our superannuation and therefore it is important to block out as much of the noise as possible and focus on how we are doing over the long term.”

In this case, Hostplus’s Balanced investment option remained the best performing balanced option over 10 years, returning 8.3 per cent p.a with the top 10 performers over ten years to June.

The research house found the following balanced option funds offer the best 10-year returns:

1. Hostplus — Balanced
2. Australian Retirement Trust — Super Savings — Balanced
3. AustralianSuper — Balanced
4. UniSuper — Balanced
5. Cbus — Growth (MySuper)
6. Hostplus — Indexed Balanced
7. Vision Super — Balanced Growth
8. HESTA — Balanced Growth
9. CareSuper — Balanced
10. Spirit Super — Balanced (MySuper)