Best performing super funds

News Limited report names Catholic Super one of Australia’s top performing super funds

8 October 2012

News Limited today released a new report on super funds, revealing the best and worst performing super funds in Australia over the past decade. The report appeared on the Nine Network’s “Today” show and in newspapers across Australia.

The report names Catholic Super one of Australia’s top performing funds, returning 6.4% p.a. over the last 10 years.

However the News Limited report also shows that of the 83 default super options available over the past five years, 51 delivered negative annual returns for members (6,066,129 member accounts) and 32 delivered positive returns (10,179,634 member accounts).

Most Australians make no active choice when it comes to super; the majority (60 per cent) have their super paid automatically into the default investment option of their employers chosen superannuation fund.

But the News Limited report demonstrates that choice of fund is crucial, revealing large and persistent divergences across fund performance.

So $10,000 invested in the worst fund a decade ago would be worth $12,800 today, but the same amount invested in the best fund would be worth $19,100 - a potential $6,300 windfall just from being in the best fund.
In fact, the report advises, Australians could gain a lot by comparing funds according to their longer term return over five or ten years and switching to the better performing funds.

''It's like footy teams. If you're consistently down the bottom of the league table then you're probably not going to win the championship the next year. Funds that are below average tend to stay below average.''

You can see the full News Limited video and news report here.