The best performing MySuper investment option has been revealed in the latest performance tables. How did your fund fare?
The Hostplus Balanced option has been ranked the best performer in the latest Rainmaker performance report for MySuper products, returning 6.3 per cent over a three-year period to 30 November 2022, the Financial Standard reports.
Coming in second was Telstra Super’s MySuper Growth option at 6.1 per cent, while Mine Super’s High Growth option was third at 6 per cent.
MySuper funds are default superannuation products that must be offered by funds if they wish to be eligible to receive default super contributions from new employees. They are meant to be simple, low-cost options suitable for most Australian workers.
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Other funds listed in the top 10 were: Active Super’s High Growth option, Aware Super High Growth, Australian Retirement Trust Lifecycle Balanced Pool, AustralianSuper Balanced, GuildSuper MySuper, Vision Super Balanced Growth and SA Metropolitan Fire Service Super Scheme High Growth.
Overall, the median return for all MySuper funds was 4.5 per cent for the three-year period. While the ‘winners’ can be happy, people invested in the funds at the bottom may not be so pleased.
The lowest-ranked option on the list was EISS Super’s Balanced option, which returned just 2.3 per cent over the measured period. While not great, it’s still in positive territory, showing the general upward trend of super returns as a whole.
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With EISS at the bottom of the table were: CBA Group’s Super Accumulation Plus Balanced (MySuper) option at 2.8 per cent, GESB West State Super-My West State Super at 3 per cent and Bendigo Growth Index Fund at 3.5 per cent.
Returns have been bumpy in recent times due to turbulent global economic conditions, rampant inflation and successive interest rate rises.
Mano Mohankumar, senior research manager at ChantWest, told SuperGuide he expected these pressures to ease somewhat in 2023.
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“While inflation remains at elevated levels, there are signs that the rate of price increases may have peaked in the US and Europe,” he says.
“That gave rise to expectations that future interest rate hikes may be smaller, which led to improved market sentiment in November.
“Despite the challenging backdrop over the past three years, the median growth fund is still more than 11 per cent ahead of the pre-COVID high that was reached at the end of January 2020.”
Are you in a default MySuper fund? How did it perform last year? Let us know in the comments section below.