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Australia’s top 5 performing super funds revealed

Australian money with the word 'SUPER' and a calculator
Now that the new superannuation laws have come into effect, you may want to consider moving to one of these top performing funds instead (Source: Getty)

It’s been a rocky ride for the superannuation industry over the past 18 months as markets recover from the economic shock of the COVID-19 pandemic.

The superannuation industry as a whole has surged 15 per cent this year, but there are some super funds which have outperformed the rest.

Here are Australia’s top performing super funds according to Rainmaker Information research.

5 best MySuper returns

MySuper funds act as a default account for people who don’t choose their own super fund when they start a new job and are generally low cost and simple investment options.

The top performing single strategy MySuper product jumped as much as 23 per cent over the last 12 months, with even the fifth best performing fund increasing by 11 per cent over the same period.


Here are the top 5 best performing funds:

  1. Hostplus

  2. UniSuper

  3. AMG Corporate Super

  4. AustralianSuper

  5. TWUSuper

Single strategy vs lifecycle - what’s the difference?

The default MySuper sector holds $800 billion in Aussie super, which accounts for two-thirds of all superannuation accounts. MySuper comprises two segments; single strategy and lifecycle.

Single strategy MySuper products invest members' money the same way regardless how old they are while lifecycle products invest members' money differently depending on how old they are.

Younger Aussies will generally be more invested into aggressive strategies like shares but as members get older they are switched across to more conservative strategies like bonds and cash.

Three-fifths of MySuper assets are held in single strategy products and two-fifths are held in lifecycle products, according to Rainmaker.

High returns from shares and property have enabled the MySuper Lifecycle Index to surge ahead of the MySuper Single Strategy Index during the past 12 months.

Lifecycle is ahead in five of the seven age cohorts, meaning it is only members in their 50s and older who, on average, are currently getting better returns in single strategy MySuper products.

BT Life Stages has held top spot as Australia's most consistently best performing lifecycle MySuper product over the 12 months to end March 2021, the Rainmaker research found.

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