With superannuation funds finalising their returns to 30 June 2023, it is clear that super has delivered a competitive outcome during uncertain times. This is particularly pleasing following the -3.4% loss reported a year ago. Share markets rebounded strongly over the year with international shares driving fund returns, albeit well supported by Australian shares.
All Balanced funds, those with between 60% to 76% of their portfolio invested in growth assets, are expected to deliver positive returns to members, while the top 10 funds provided members with returns of over 9.5% for the financial year and members in several of the best performers will be receiving double digit returns. ESSSuper was the top performing Balanced fund for the year ending June 2023 returning 13.3% for its Balanced Growth option, which was renamed from Basic Growth on the 1st of July 2023. This was followed by Vision Super’s Balanced Growth option and Brighter Super’s Balanced Option with returns of 11.0% and 10.6% respectively.
Daniel Selioutine, ESSSuper’s Group Executive, Investments commented: “Performance over the last 12 months has been a welcome result for our members and follows a multi-year program of reorienting the portfolio towards areas of competitive advantage. Our shorter term performance is explained by our positioning in equities and bonds, however our dedicated investment team remains firmly focussed on delivering longer-term investment outcomes to members.”
Top 10 Balanced Options over 12 months
As at 30 June 2023
| Rank | Option Name | 1 Year % | 10 Year % pa |
| 1 | ESSSuper Accum – Basic Growth | 13.3 | – |
| 2 | Vision SS – Balanced Growth | 11.0 | 8.1 |
| 3 | Brighter Super Accum – Balanced | 10.6 | 7.3 |
| 4 | UniSuper Accum (1) – Balanced | 10.3 | 8.4 |
| 5 | Equip MyFuture – Balanced Growth | 10.1 | 7.8 |
| 6 | Australian Retirement Trust – Super Savings – Balanced | 10.0 | 8.4 |
| 7 | IOOF Employer Super Core – IOOF MultiSeries 70 | 9.8 | 7.2 |
| 8 | Aware Super Future Saver – Balanced | 9.7 | 7.9 |
| 9 | Mercer Super Trust – Mercer Select Growth | 9.6 | – |
| 10 | HESTA – Balanced Growth | 9.6 | 8.0 |
| SR50 Balanced (60-76) Index | 9.0 | 7.5 |
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on primary Balanced option by FUM within SR50 Balanced Index.
The table above displays the performance of the top performing balanced funds for the year to 30 June 2023, as well as showing 10-year returns which is an important consideration given the long-term nature of superannuation investments.
The second half of the financial year provided the majority of gains for funds, led by a rally in international shares. A key theme for returns in 2023 was that funds with higher exposure to shares generally outperformed for the year, while those with greater exposure to unlisted property and alternatives reported more subdued outcomes. As a result, members who were invested in index funds generally did quite well, given the strong focus on listed shares in these options.
Top 5 Passive Balanced Options over 12 months
As at 30 June 2023
| Rank | Option Name | 1 Year % | 10 Year % pa |
| 1 | HESTA – Indexed Balanced Growth | 12.5 | – |
| 2 | Rest – Balanced Indexed | 12.4 | – |
| 3 | Hostplus – Indexed Balanced | 12.3 | 7.9 |
| 4 | Brighter Super – Indexed Balanced | 11.7 | – |
| 5 | AustralianSuper – Indexed Diversified | 11.6 | 7.2 |
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on passive options with SAA of 60-76% growth assets tracked by SuperRatings.
The top performing indexed fund was HESTA’s Indexed Balanced Growth option with a return of 12.5% for the year to June. While this sits slightly lower than the top performing balanced option, over the past 12 months, balanced index options have tended to outperform their more actively managed equivalents.
Top 5 Sustainable Balanced Options over 12 months
As at 30 June 2023
| Rank | Option Name | 1 Year % | 10 Year % pa |
| 1 | Raiz Super – Emerald (SRI) | 13.3 | – |
| 2 | Super SA Triple S – Socially Responsible* | 12.1 | 7.3 |
| 3 | UniSuper Accum (1) – Sustainable Balanced | 11.0 | 8.2 |
| 4 | Aware Super Future Saver – Balanced Socially Conscious | 10.9 | 8.4 |
| 5 | Future Super – Balanced Index | 10.5 | – |
*This option is tax exempt for members
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR Sustainable Balanced Survey for options with SAA of 60-76% growth assets tracked by SuperRatings.
Investments with a sustainable focus have also outperformed over the year with Raiz Super’s Emerald investment option matching the top performing balanced option with a return of 13.3%.
“As we see funds offering members a range of investment options, it is worthwhile to note we are seeing different options perform well in different market conditions” commented Executive Director of SuperRatings, Kirby Rappell. “However, members should remember that superannuation is a long-term investment, and most of these options are still relatively new in superannuation terms. While short term trends may be topical, longer term trends are our primary focus as we want to see which funds have performed well over the long term and their alignment with their member’s outcomes.”
Hostplus’ Balanced option remained the highest performing balanced option over 10 years returning of 8.9% p.a. with the top 10 performers over ten years to June listed in the table below:
Top 10 Balanced Options over 10 years
As at 30 June 2023
| Rank | Option Name | 1 Year % | 10 Year % pa |
| 1 | Hostplus – Balanced | 8.0 | 8.9 |
| 2 | AustralianSuper – Balanced | 8.2 | 8.6 |
| 3 | Australian Retirement Trust – Super Savings – Balanced | 10.0 | 8.4 |
| 4 | UniSuper – Balanced | 10.3 | 8.4 |
| 5 | Cbus – Growth (MySuper) | 9.0 | 8.3 |
| 6 | Vision Super – Balanced Growth | 11.0 | 8.1 |
| 7 | CareSuper – Balanced | 9.1 | 8.0 |
| 8 | HESTA – Balanced Growth | 9.6 | 8.0 |
| 9 | Aware Super Future Saver – Balanced | 9.7 | 7.9 |
| 10 | Spirit Super – Balanced (MySuper) | 9.2 | 7.8 |
| SR50 Balanced (60-76) Index | 9.0 | 7.5 |
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR50 Balanced Index options with SAA of 60-76% growth assets tracked by SuperRatings.
“We observed funds reviewing and writing down their unlisted asset valuations at the end of the financial year, contributing to the moderately weaker annual performance of funds with significant exposure to these assets in FY23; however, over the long term, they have added value to member outcomes, with many of the top performing options over 10 years having exposure to alternative assets” continued Mr Rappell. “Superannuation continues to deliver for members over the long term with annual returns of 7.1% since compulsory superannuation began in 1992.”
Expect more ups and downs in FY24
While funds benefited from strong performance in shares over the second half of the year, FY23 continued the trend of increased fluctuation in member account balances with 5 out of the 12 months in the year having negative performance. Members who are still some distance from retiring can afford to ride-out these ups and downs as these will be a distant memory by the time they retire, but for members nearing, or in, retirement minimising these fluctuations can be a key factor in their retirement planning.
“Since the onset of the COVID-19 pandemic, managing volatility has really come back into focus for funds after almost a decade of steady gains. The sharp rise in inflation and global uncertainty has been a constant over the past couple of years and we expect this to persist.” said Mr Rappell.
The table below shows the top 10 funds ranked according to their volatility-adjusted return, which measures how much members are being rewarded for taking on the ups and downs in their balances.
CareSuper, which was the winner of the SuperRatings Smooth Ride award in 2022, for being able to manage the ups and downs, sits at the top of the table with its Balanced option return of 7.5% p.a. over the past 7 years. This was closely followed by Australian Retirement Trust’s Super Savings Balanced option with a return of 8.3% pa.
Top 10 Funds Based on Volatility-Adjusted Performance with 7 Year Return Shown
As at 30 June 2023
| Rank | Option Name | Rolling 7 Year % |
| 1 | CareSuper – Balanced | 7.5 |
| 2 | Australian Retirement Trust – Super Savings – Balanced | 8.3 |
| 3 | Hostplus – Balanced | 8.6 |
| 4 | Qantas Super – Growth | 7.8 |
| 5 | Aware Super Future Saver – Balanced | 7.7 |
| 6 | Cbus – Growth (MySuper) | 7.6 |
| 7 | AustralianSuper – Balanced | 8.1 |
| 8 | HESTA – Balanced Growth | 7.7 |
| 9 | Vision Super – Balanced Growth | 8.0 |
| 10 | IOOF Employer Super – MultiMix Balanced Growth Trust | 7.2 |
Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR50 Balanced Index with SAA of 60-76% growth assets tracked by SuperRatings.
Suzanne Branton, Chief Investment Officer at CareSuper commented, “Through its history CareSuper’s investment approach has delivered high long term returns with lower risk. High returns are important, but we also care for our members by protecting their savings when markets are volatile and uncertain. We are pleased to consistently rank amongst the highest risk-adjusted returns, that’s our goal. Many think members don’t recognise risk-adjusted returns, but we know members understand when the environment becomes difficult – they can see the cost of living and mortgage rates are much higher. Given the complex outlook, we expect our dual purpose will be valued by members in times to come.”
As another financial year ends and funds begin to prepare annual statements, it’s a great time to review your superannuation settings. Regularly engaging with your superannuation will be time well spent when you see the potential impact on your retirement balance. Common things to check include if the investment option you’re in is suitable for your current stage of life and risk appetite, your current insurance cover and importantly, that all your contact details are up to date. Funds often offer simple risk profiling tools on their website to help with investment decisions and checking on your details has never been easier with most funds offering multiple channels to do so, such as by phone, online portals and even dedicated mobile apps.
If you are thinking of making a change, there are also multiple services that can help. SuperRatings has over 450 product ratings available on our website and funds themselves may offer access to advice services on a range of topics including investments, insurance, consolidation and retirement planning either directly or through associated adviser networks. Contact your fund to see what advice services are available but note there may be a cost for doing so. Make sure you check how much advice will cost and how you can pay for it before going ahead to ensure it’s right for you. Alternatively, you may wish to discuss your super with a trusted financial adviser to help understand whether your current super settings are appropriate for your personal situation. The Government also provides a comparison tool via the ATO website and information on how to select a financial adviser through the MoneySmart website.
Release ends
We welcome media enquiries regarding our research or information held in our database. We are also able to provide commentary and customised tables or charts for your use.
For more information contact:
Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
Require further information? Simply visit www.superratings.com.au
