Change your super now: Australia’s best performing superannuation funds revealed – so is it on your list?
In 2022-23 the Balance Super Fund rose 9 per cent but ESSSuper returns rose 13.3 per cent.
Australia’s best performing super funds delivered double-digit returns in the last financial year.
This marks a dramatic shift from calendar 2022 when the typical retirement savings fund moves backwards.
Stock markets are recovering with inflation in the US and Australia easing from high levels last year, giving investors hope that interest rates may rise soon.
The average balanced fund, with a mix of 60 to 76 percent growth-oriented assets, rose nine percent as of June 30 from the average over the past three decades, new Super Ratings data showed.
This is a big change from 2022 when equivalent growth-oriented super funds shrank by 4.8 per cent, producing the worst annual result since the 2008 global financial crisis to 31 December.
Australia’s best-performing super funds delivered double-digit returns in the last financial year (pictured with young women at Royal Randwick Racecourse in Sydney)
ESSSuper’s Acum Basic Growth product – the fund for emergency services responders and Victorian government employees – had a best return of 13.3 per cent in 2022-23.
The fund’s group executive of investments, Daniel Selutine, said a rebounding stock market and higher bond yields – where government bond investors are compensated with higher annual returns – helped.
‘Our short-term performance is explained by our positions in equities and bonds, but our dedicated investment team is strongly focused on delivering long-term investment results to members,’ he said.
Of the top 10 in the Super Ratings table, six have double-digit returns including Vision SS – Balanced Growth (11 percent); Bright Super Accum – Balanced (up to 10.6 percent); Unisuper Accum -Balanced (up 10.3 percent); Equip My Future – moderate growth (up 10.1 percent); and Australian Retirement Trust – Super Savings – Balanced (up to 10 per cent).
The reporting period coincides with Prime Minister Anthony Albanese (pictured with girlfriend Jodie Haydon) announcing in February that from July 1, 2025, the 0.5 per cent of Australians with super over $3 million will pay a 30 per cent concessional tax. Contribution – now increased from 15 per cent
The reporting period coincides with Prime Minister Anthony Albanese announcing in February that from July 1, 2025, the 0.5 per cent of Australians with more than $3 million in super will pay a 30 per cent concessional tax on their contributions – up from 15 per cent now.
The federal government estimates it will save the budget $2.3 billion in the previous fiscal year from July 2027.
The Australian share market benchmark S&P/ASX200 ended 2022-23 9.7 per cent stronger, with the result largely reflected in superannuation returns.
In the last financial year, the Reserve Bank of Australia raised rates for the 12th time in 13 months in June, matching an 11-year high of 4.1 percent.
Inflation eased to 5.6 percent in May, down from a 32-year high of 7.8 percent at the end of 2022 but still above the RBA’s 2 to 3 percent target.
Super returns have provided an average, annualized return of 7.1 per cent since 1992 when mandatory employer redundancy was introduced.
The mandatory contribution rose by half a percentage point to 11 percent on July 1 and will increase by 0.5 percentage points annually until it reaches 12 percent in July 2025.
Best performing super fund of the year till June 30, 2023
1. ESSSuper Accuum – Basic Growth: Up 13.3 percent
2. Vision SS – Balanced Growth: Up 11 percent
3. Bright Super Accum – Balanced: Up 10.6 percent
4. Unisuper Accum (1) – Balanced: Up 10.3 percent
5. Equip MyFuture – Balanced Growth: 10.1 percent
6. Australian Retirement Trust – Super Savings – Balanced: 10 per cent
7. IOOF Employer Super Core – IOOF MultiSeries 70: 9.8 percent
8. Conscious Super Future Saver – Balanced: 9.7 percent
9. Mercer Super Trust – Mercer Select Growth: Up 9.6 percent
10. Hesta – Balanced Growth: Up 9.6 percent
Balanced Fund: 9 percent
Source: Super rating based on balanced funds with 60 to 76 percent mix of growth-oriented assets
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