POWERED BY MOMENTUM MEDIA
Choosing the right super fund
Many Australians depend on their superannuation for financial security and wellbeing during the retirement phase. But the selection process can be complex, requiring future retirees to assess various factors. These include:
- The fund type and category
- Fees
- Investment strategies
- Insurance offerings
- The overall service proposition
Ultimately, the most important consideration is performance. A fund’s past performance, while not an indicator of its future performance, can serve as a guide for prospective members. In particular, a fund’s ability to consistently deliver strong returns for members over a long-term investment horizon should form part of the decision-making process.
Australia’s superannuation industry has over-performed since its inception over 30 years ago. According to APRA data, super funds have collectively delivered positive investment returns for 26 of 31 financial years, with an average ROA of 7.8 per cent – well above the long-term target of 6 per cent. Over the latest reported financial year (2022–23), super funds delivered a return of 9.2 per cent.
But on an individual basis, performance can vary significantly, with some funds making a larger relative contribution to the overall performance of the industry. Using publicly available data to compare funds is key, with APRA’s performance heatmaps and quarterly statistics a vital source of information.
Ultimately, it’s important to leverage the full breadth of online resources to compare funds, not only on performance but also on the overall proposition.
Below are profiles of superannuation funds recently recognised for success at Super Review’s annual Super Fund of the Year Awards.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
