Superannuation

Top 10 performing super funds revealed

Cara Waters /

Of the top 10 performing major superannuation funds in Australia, the top three are all corporate funds run for in-house employees, according to figures released yesterday by the Australian Prudential Regulation Authority.

Superannuation funds for staff at Goldman Sachs with returns of 9% since 2004, the Commonwealth Bank with returns of 7.8% a year and Worsley Aluminia with returns of 7.5% were the nation’s best performing super funds.

In contrast, funds offered by banks and wealth managers to the general public and small businesses have underperformed over the past decade, according to the regulator’s figures.

A better result was given by not-for-profit funds.

The APRA’s data shows in the 10 years to June 30, 2012, the rate of return was 5.5% per annum for public sector funds, 5.1% for industry funds and 4.8 % for corporate funds. This compares to 3.4% per annum for retail funds.

Fiona Reynolds, chief executive of the Australian Institute of Superannuation Trustees, told SmartCompany the APRA’s data showed those with their retirement savings invested in not-for-profit funds are retiring with significantly larger retirement nest eggs.

“This data confirms once again that, over the long term, not-for-profit super funds deliver best value for members as their demonstrated one or two per cent outperformance each year really adds up over a working lifetime of super contributions,” she says.

Reynolds points to modelling by rating agencies in 2009 which showed an outperformance of around 2.4% a year was worth nearly $24,000 extra in superannuation after 10 years to an individual on average weekly earnings.

However, she says while performance tables are a useful tool for consumers it was worth keeping in mind that past performance – particularly over a year or two – was no guarantee of future success.

“While members of funds that have consistently underperformed their peers may need to consider moving to a fund with a better track record, it would be unwise to judge a fund’s performance on a period of anything less than five years, particularly in this very volatile investment environment”, she says.

The top 10 super funds were:

 


Superannuation fund

Total assets
($ M)

Annualised
5 year
(%)

9 year
return (%)

1

Goldman Sachs JBWere Super

255

1.2

9

2

CBA Group Super

6871

2.5

7.8

3

Worsley Alumina

226

1.2

7.5

4

Tidswell Master Super Plan

63

2.3

7.1

5

Unisuper

32,627

0.6

7.1

6

Australia Post Super Scheme

6333

1.3

7.0

7

United Technologies Corporation Retirement Plan

277

1.8

7.0

8

Maritime Super

3372

0.2

6.9

9

Catholic Super Fund

4481

0.3

6.8

10

Queensland Local Government Super

7216

1.4

6.8

 

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Cara Waters

Cara Waters is a former SmartCompany editor. Previously, Cara was a senior reporter for the Financial Times' website and worked for The Sunday Times in London.

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