Best Performing Super Funds in Australia

(2025 Comparison)

 

 

 

 

How to Evaluate Super Fund Performance

Choosing the right superannuation fund is one of the most important financial decisions, as it can impact your retirement balance by hundreds of thousands of dollars. With over 100 super funds in Australia, understanding how to evaluate performance is crucial.

 

Key Performance Metrics

Investment Returns: – Long-term performance (10+ years) is more important than short-term results – Consider performance across different market cycles – Compare returns after fees and taxes – Look at consistency of performance over time

Fees and Costs: – Administration fees (fixed and percentage-based) – Investment management fees – Insurance premiums – Transaction and switching costs – Total cost impact on your balance over time

Member Services: – Online platform quality and functionality – Customer service accessibility and quality – Educational resources and tools – Financial advice availability

Fund Governance: – Trustee structure and independence – Investment governance and oversight – Risk management processes – Regulatory compliance record

 

Performance Measurement Standards

MySuper Products: – Default investment options for most members – Subject to annual performance tests by APRA – Must meet benchmark performance standards – Failing funds face restrictions and potential closure

APRA Performance Test: – Compares fund performance to benchmark over 8 years – Considers fees, investment returns, and risk – Funds that fail twice face member notification requirements – Provides standardized comparison across funds

Independent Ratings: – SuperRatings and Chant West provide independent analysis – Consider methodology and criteria used – Look for awards and recognition over multiple years – Use as one factor among many in decision-making

 

 

Top Performing Super Funds 2025

Based on long-term performance, fees, and member outcomes, here are the standout performers across different categories.

 

Overall Best Performers (Balanced Options)

Australian Super – 10-year return: 7.44% p.a. (to December 2024) – Members: 3.2+ million – Total funds: $350+ billion – Key strengths: Consistent long-term performance, low fees, comprehensive member services

Performance Highlights: – Balanced option has delivered strong risk-adjusted returns – Outperformed most retail funds over 10+ years – Strong performance across multiple asset classes – Effective cost management benefiting members

Hostplus – 10-year return: 7.8% p.a. (Balanced option) – Members: 1.5+ million – Total funds: $90+ billion – Key strengths: Strong investment performance, innovative strategies, low fees

Performance Highlights: – Consistently ranked among top performers – Strong international diversification – Effective use of unlisted assets – Competitive fee structure

HESTA – 10-year return: 7.2% p.a. (Balanced Growth) – Members: 920,000+ – Total funds: $70+ billion – Key strengths: Strong long-term performance, focus on health and community services workers

Performance Highlights: – Solid performance across market cycles – Strong governance and member focus – Competitive fees and comprehensive insurance – Excellent member services and education

 

Industry Fund Leaders

UniSuper – 10-year return: 7.1% p.a. (Balanced) – Members: 470,000+ (university sector) – Key strengths: Strong performance, comprehensive investment options, defined benefit components

REST – 10-year return: 6.9% p.a. (Core Strategy) – Members: 1.9+ million – Key strengths: Large scale, retail and hospitality focus, improving performance

Cbus – 10-year return: 7.0% p.a. (Growth) – Members: 870,000+ (construction and building) – Key strengths: Industry expertise, strong member advocacy, solid performance

 

Retail Fund Standouts

Colonial First State FirstChoice – 10-year return: 6.8% p.a. (Diversified) – Key strengths: Wide investment choice, comprehensive platform, adviser support

BT Super – 10-year return: 6.5% p.a. (Balanced) – Key strengths: Established platform, range of investment options, institutional backing

MLC Super – 10-year return: 6.3% p.a. (Balanced) – Key strengths: Long history, comprehensive services, adviser network

 

Emerging Performers

Australian Ethical Super – 10-year return: 7.3% p.a. (Balanced) – Key strengths: Ethical investing focus, strong recent performance, growing membership

Aware Super – 10-year return: 6.8% p.a. (MySuper Balanced) – Key strengths: Large scale, improving performance, comprehensive services

 

 

Industry Super Funds Analysis

Industry super funds have historically outperformed retail funds, largely due to their profit-for-members structure and focus on long-term investment strategies.

 

Advantages of Industry Funds

Profit-for-Members Structure: – No shareholders to pay dividends to – All profits returned to members through better returns or lower fees – Trustee boards include member representatives – Focus on member outcomes rather than profit maximization

Scale Benefits: – Large funds can negotiate better investment management fees – Access to institutional investment opportunities – Economies of scale in administration and operations – Greater bargaining power with service providers

Long-term Investment Approach: – Less pressure for short-term performance – Can invest in illiquid assets for higher returns – Focus on long-term member outcomes – Less susceptible to short-term market pressures

 

Top Industry Fund Detailed Analysis

Australian Super – The Market Leader

Strengths: – Largest super fund in Australia with significant scale advantages – Consistently strong performance across multiple investment options – Low fee structure benefiting from economies of scale – Comprehensive member services and digital platform – Strong governance and investment management

Investment Approach: – Diversified global investment strategy – Significant allocation to unlisted assets (infrastructure, property, private equity) – Active management approach with internal and external managers – Focus on long-term value creation

Fee Structure: – Administration fee: $2.25 per week plus 0.10% p.a. – Investment fees vary by option (typically 0.40-0.80% p.a.) – No entry or exit fees – Competitive insurance premiums

Best For: Members seeking consistent performance, low fees, and comprehensive services

Hostplus – The Performance Leader

Strengths: – Outstanding long-term investment performance – Innovative investment strategies and manager selection – Strong focus on alternative investments – Competitive fee structure – Growing rapidly across multiple industries

 

Investment Approach: – High allocation to growth assets and alternatives – Strong international diversification – Focus on unlisted infrastructure and private equity – Active currency hedging strategies

Fee Structure: – Administration fee: $1.50 per week plus 0.02% p.a. – Investment fees: 0.02-1.20% p.a. depending on option – Very competitive overall cost structure – Low-cost insurance options

Best For: Members prioritizing investment performance and willing to accept higher volatility

HESTA – The Specialist

Strengths: – Strong focus on health and community services workers – Consistent long-term performance – Excellent member education and support – Comprehensive insurance coverage – Strong advocacy for member interests

Investment Approach: – Balanced approach to growth and defensive assets – Focus on sustainable and responsible investing – Strong Australian equity allocation – Diversified international exposure

Fee Structure: – Administration fee: $1.50 per week plus 0.10% p.a. – Investment fees: 0.17-0.95% p.a. – Competitive insurance premiums – No switching fees between options

Best For: Health and community services workers, members valuing comprehensive support

 

 

Retail Super Funds Analysis

Retail super funds are operated by banks, insurance companies, and other financial institutions. While they typically charge higher fees, they often provide more investment choice and personalized services.

 

Advantages of Retail Funds

Investment Choice: – Wider range of investment options – Access to external fund managers – Ability to construct personalized portfolios – More frequent switching between options

Service and Support: – Comprehensive financial planning services – Dedicated relationship managers for larger balances – Sophisticated online platforms and tools – Integration with other banking and financial services

Flexibility: – More flexible contribution and withdrawal options – Customizable insurance arrangements – Ability to tailor services to individual needs – Often better suited to complex financial situations

 

Top Retail Fund Analysis

Colonial First State FirstChoice

Strengths: – Extensive investment menu with over 200 options – Strong platform functionality and reporting – Access to high-quality fund managers – Comprehensive insurance and advice services

Investment Options: – Wide range of single-sector and diversified options – Access to both retail and institutional fund managers – Comprehensive international investment options – Alternative investment strategies available

Fee Structure: – Administration fees: 0.20-0.75% p.a. depending on balance – Investment management fees: 0.15-2.50% p.a. depending on options chosen – Advice fees may apply – Insurance premiums vary by coverage

Best For: Members wanting extensive investment choice and comprehensive services

BT Super

Strengths: – Long-established platform with strong track record – Access to BT Investment Management expertise – Comprehensive range of investment options – Strong institutional backing from Westpac Group

Investment Approach: – Focus on diversified investment strategies – Access to both active and passive management – Strong research and manager selection process – Emphasis on risk management

Fee Structure: – Administration fees: 0.15-0.60% p.a. – Investment fees: 0.09-2.20% p.a. – Performance fees may apply to some options – Competitive insurance rates

Best For: Members seeking established platform with institutional backing

 

 

Self-Managed Super Funds (SMSFs)

SMSFs give you complete control over your superannuation investments but require significant time, knowledge, and responsibility.

 

SMSF Considerations

Advantages: – Complete investment control and flexibility – Potential for lower costs with larger balances – Ability to invest in direct property and other assets – Tax planning opportunities – Estate planning flexibility

Disadvantages: – Significant time commitment and responsibility – Need for investment and regulatory knowledge – Higher costs for smaller balances – Personal liability for compliance – Limited professional management

Suitability Factors: – Generally suitable for balances over $500,000 – Requires investment knowledge and time commitment – Best for those wanting direct property investment – Suitable for business owners with specific strategies – Requires ongoing professional support

 

SMSF Performance Considerations

Investment Returns: – Performance varies widely based on investment choices – Many SMSFs underperform professionally managed funds – Success depends heavily on trustee investment skill – Concentration risk from limited diversification

Cost Effectiveness: – Setup costs: $3,000-$5,000 – Annual compliance costs: $2,000-$4,000+ – Investment costs vary by strategy – Generally cost-effective only for larger balances

 

 

Fees and Costs Comparison

Understanding fees is crucial as they compound over time and can significantly impact your final retirement balance.

 

Types of Super Fund Fees

Administration Fees: – Fixed dollar amounts (e.g., $2 per week) – Percentage-based fees (e.g., 0.10% p.a.) – Account-keeping and member services costs – Technology and platform maintenance

Investment Management Fees: – Fees paid to investment managers – Vary by investment option and complexity – Active management typically costs more than passive – Alternative investments often have higher fees

Insurance Premiums: – Life insurance and total permanent disability cover – Income protection insurance – Varies by age, occupation, and coverage level – Can be significant portion of total costs for younger members

Other Fees: – Switching fees between investment options – Advice fees for financial planning services – Exit fees when leaving the fund – Transaction costs for buying and selling investments

 

Fee Impact Analysis

Example: $50,000 Balance, 35 Years to Retirement

Low-Fee Fund (0.50% total annual fees): – Annual fees: $250 – Balance at retirement (7% return): $739,000 – Total fees paid: $58,000

High-Fee Fund (1.50% total annual fees): – Annual fees: $750 – Balance at retirement (7% return): $590,000 – Total fees paid: $149,000

Difference: $149,000 less in retirement due to higher fees

 

Fee Comparison by Fund Type

Industry Funds (Typical Range): – Administration: $78-$200 p.a. plus 0.02-0.15% p.a. – Investment: 0.15-0.80% p.a. – Total: 0.40-1.20% p.a.

Retail Funds (Typical Range): – Administration: 0.15-0.75% p.a. – Investment: 0.15-2.50% p.a. – Total: 0.60-2.00% p.a.

SMSFs (Typical Range): – Setup: $3,000-$5,000 – Annual compliance: $2,000-$4,000+ – Investment costs: Variable – Total: 0.50-2.00%+ p.a. depending on balance

 

 

Investment Options Analysis

Different super funds offer varying investment options, from simple balanced funds to complex multi-manager strategies.

 

Common Investment Options

Conservative/Capital Stable: – 20-40% growth assets (shares, property) – 60-80% defensive assets (bonds, cash) – Target return: CPI + 1-2% p.a. – Suitable for: Members nearing retirement, risk-averse investors

Moderate/Balanced: – 50-70% growth assets – 30-50% defensive assets – Target return: CPI + 3-4% p.a. – Suitable for: Most members, default option for many funds

Growth/Aggressive: – 70-90% growth assets – 10-30% defensive assets – Target return: CPI + 4-5% p.a. – Suitable for: Younger members, long investment timeframes

High Growth: – 90-100% growth assets – Minimal defensive assets – Target return: CPI + 5%+ p.a. – Suitable for: Young investors comfortable with volatility

 

Specialized Investment Strategies

Lifecycle/Target Date Funds: – Automatically adjust asset allocation based on age – Become more conservative as you approach retirement – Reduce need for active decision-making – Available from several major funds

Ethical/Sustainable Investing: – Screen out harmful industries (tobacco, weapons, fossil fuels) – Focus on environmental, social, and governance (ESG) factors – Growing popularity and performance competitiveness – Available from most major funds

Alternative Investments: – Infrastructure, private equity, hedge funds – Potentially higher returns but less liquid – Require sophisticated management – More common in larger industry funds

 

Performance Comparison by Investment Option

10-Year Returns (to December 2024):

Balanced Options: – Australian Super: 7.44% p.a. – Hostplus: 7.80% p.a. – HESTA: 7.20% p.a. – UniSuper: 7.10% p.a. – Industry average: 6.80% p.a.

Growth Options: – Australian Super: 8.20% p.a. – Hostplus: 8.90% p.a. – HESTA: 8.10% p.a. – UniSuper: 8.00% p.a. – Industry average: 7.60% p.a.

Conservative Options: – Australian Super: 5.80% p.a. – Hostplus: 6.20% p.a. – HESTA: 5.90% p.a. – UniSuper: 5.70% p.a. – Industry average: 5.50% p.a.

 

 

Insurance and Additional Benefits

Most super funds provide default insurance coverage, but the level and cost vary significantly between funds.

 

Types of Super Insurance

Life Insurance: – Lump sum payment on death – Typical default cover: 3-6 times salary – Can be increased with health underwriting – Premiums deducted from super balance

Total and Permanent Disability (TPD): – Lump sum if unable to work due to illness/injury – “Any occupation” vs “own occupation” definitions – Often bundled with life insurance – Important for income protection

Income Protection: – Monthly payments if unable to work temporarily – Typically 75% of pre-disability income – Benefit periods vary (2 years to age 65) – Waiting periods before payments commence

 

Insurance Comparison by Fund

Australian Super: – Competitive premiums across age groups – Flexible coverage options – Online application and management – Good claims handling reputation

Hostplus: – Very competitive insurance rates – Comprehensive coverage options – Easy online management – Strong focus on member outcomes

HESTA: – Industry-leading insurance for health workers – Occupation-specific coverage – Comprehensive income protection – Strong member advocacy in claims

 

Additional Member Benefits

Financial Advice: – Phone-based general advice (usually free) – Comprehensive financial planning (fee-based) – Online tools and calculators – Educational seminars and webinars

Member Services: – Mobile apps and online platforms – Account management tools – Contribution tracking and optimization – Retirement planning assistance

Employer Services: – Payroll integration and reporting – Employee education programs – Workplace seminars – Compliance support

 

 

How to Switch Super Funds

Switching super funds can significantly improve your retirement outcomes, but it’s important to do it correctly to avoid losing benefits.

 

Before You Switch

Research and Compare: – Compare long-term performance (10+ years) – Analyze total fees and costs – Review investment options available – Check insurance coverage and costs

Consider Your Current Fund: – Review any exit fees or penalties – Check for unique benefits you might lose – Consider timing of any pending contributions – Review insurance coverage continuity

Understand the Process: – New fund will contact old fund to transfer balance – Process typically takes 2-4 weeks – You can continue contributing to new fund immediately – Insurance coverage may have waiting periods

 

Step-by-Step Switching Process

Step 1: Choose Your New Fund – Complete application with new fund – Provide identification and employment details – Choose investment options and insurance coverage – Set up contribution arrangements

Step 2: Transfer Your Balance – New fund will initiate transfer process – You’ll receive confirmation from both funds – Monitor transfer progress online – Ensure all balances are transferred

Step 3: Update Details – Notify your employer of new fund details – Update any salary sacrifice arrangements – Confirm insurance coverage is active – Close old fund account once transfer is complete

 

Common Switching Mistakes

Not Comparing Total Costs: – Focusing only on investment returns – Ignoring insurance premium differences – Not considering advice and service fees – Missing exit fees from current fund

Timing Issues: – Switching just before large contributions – Not considering market timing – Missing employer contribution cycles – Switching during volatile market periods

Insurance Gaps: – Canceling old insurance before new coverage starts – Not comparing coverage levels and definitions – Missing pre-existing condition exclusions – Not understanding waiting periods

 

 

Making Your Decision

Choosing the right super fund requires careful consideration of your individual circumstances, goals, and preferences.

 

Key Decision Factors

Performance Track Record: – Focus on long-term performance (10+ years) – Consider consistency across market cycles – Look at risk-adjusted returns – Compare against relevant benchmarks

Fees and Costs: – Calculate total annual costs as percentage of balance – Consider impact of fees over your investment timeframe – Include insurance premiums in cost analysis – Look for transparent fee structures

Investment Options: – Ensure fund offers options suitable for your age and risk tolerance – Consider availability of ethical/sustainable options – Look for lifecycle or target-date options – Check flexibility to change options

Service Quality: – Online platform functionality and ease of use – Customer service availability and quality – Educational resources and tools – Financial advice availability

Fund Stability: – Size and growth of fund – Governance structure and processes – Regulatory compliance record – Financial strength and stability

 

Decision Framework

For Young Investors (20s-30s): – Prioritize long-term performance over short-term volatility – Choose growth or high-growth investment options – Focus on low fees to maximize compound growth – Consider funds with strong track records in growth assets

For Mid-Career (40s-50s): – Balance performance with risk management – Consider balanced or moderate investment options – Review insurance coverage adequacy – Plan for transition to retirement strategies

For Pre-Retirees (55+): – Focus on capital preservation and income generation – Consider more conservative investment options – Review pension and drawdown strategies – Ensure adequate insurance coverage continues

 

Top Recommendations by Category

Best Overall Value: 1. Australian Super – Strong performance, low fees, comprehensive services 2. Hostplus – Excellent performance, very competitive fees 3. HESTA – Solid performance, good member focus

Best for Investment Choice: 1. Colonial First State FirstChoice – Extensive investment menu 2. BT Super – Comprehensive platform with institutional backing 3. MLC Super – Wide range of options and services

Best for Specific Industries: 1. UniSuper – University sector employees 2. Cbus – Construction and building workers 3. HESTA – Health and community services

Best for Ethical Investing: 1. Australian Ethical Super – Dedicated ethical focus 2. HESTA – Strong ESG integration 3. Hostplus – Growing sustainable investment options

 

 

Tips

Choosing the right superannuation fund is one of the most important financial decisions you’ll make, potentially impacting your retirement balance by hundreds of thousands of dollars. Based on our comprehensive analysis, here are the key takeaways:

Top Performers for 2025: – Australian Super leads in overall value with strong performance, low fees, and comprehensive services – Hostplus excels in investment performance with innovative strategies and competitive costs – HESTA provides excellent value for health and community services workers

Key Decision Principles: 1. Focus on long-term performance rather than short-term results 2. Minimize fees as they compound significantly over time 3. Choose age-appropriate investment options to optimize growth 4. Consider total value including services, insurance, and member benefits 5. Review regularly as your circumstances and fund performance change

Action Steps: 1. Evaluate your current fund against top performers 2. Calculate the potential benefit of switching funds 3. Consider your specific needs and circumstances 4. Make the switch if benefits outweigh costs and risks 5. Monitor performance and review annually

Remember that the “best” super fund varies depending on your individual circumstances, age, income, and preferences. While industry funds have generally outperformed retail funds, the most important factor is choosing a fund that aligns with your needs and consistently delivers strong long-term performance at reasonable cost.

The difference between a top-performing fund and an average fund can mean hundreds of thousands of dollars more in retirement. Take the time to research, compare, and choose wisely – your future self will thank you.

 

This article provides general information only and doesn’t constitute personal financial advice. Super fund performance can vary, and past performance doesn’t guarantee future results. Consider seeking professional advice for your specific circumstances and always check current fund information before making decisions.

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