The 10-year investment return is one of the most useful metrics for comparing superannuation funds. It smooths out short-term market volatility and better reflects a fund’s long-term investment skill, fee efficiency, and asset allocation.
Why 10-Year Returns Matter Most for Super
Super is a multi-decade investment. Single-year or even 3-year returns can be heavily influenced by market timing. A fund with a poor 1-year return due to a market downturn may be an excellent long-term performer; conversely, a fund that rode a bull market for 2 years may look strong but underperform over the long run.
The APRA annual performance test uses an 8-year return window. For members evaluating funds, 10-year returns provide additional context.
How Super Returns Are Reported
Net investment returns (after investment fees and costs, but before administration fees) are the standard for comparing super fund performance in Australia. The APRA annual heatmap and the ATO’s YourSuper comparison tool both use net investment returns.
Key definitions:
- Net return: After investment fees (ICR/indirect costs) and investment taxes (15%)
- Gross return: Before fees and taxes — less useful for comparison
- Return to member: After all fees including administration — the most accurate but least commonly published
Always compare like with like — high-growth options will show higher 10-year returns than balanced options because they take more risk. Compare funds within the same risk/investment category.
Historical 10-Year Returns — Major MySuper Balanced Options
Note: Past performance is not a reliable indicator of future returns. Data approximate — verify with individual fund disclosures or APRA data.
| Fund | 10-year return (to 30 June 2024, est.) |
|---|---|
| AustralianSuper Balanced | ~8.7% p.a. |
| Hostplus Balanced | ~8.6% p.a. |
| Australian Retirement Trust Super Savings | ~8.4% p.a. |
| Aware Super High Growth | ~9.5% p.a. (high growth) |
| Cbus Growth (MySuper) | ~8.3% p.a. |
| UniSuper Balanced | ~8.2% p.a. |
| REST Core Strategy | ~7.9% p.a. |
These are approximate figures based on publicly available fund data. For exact current figures, check each fund’s website, the APRA heatmap, or the ATO YourSuper tool.
What Drives Long-Term Super Returns?
- Asset allocation: Funds with higher allocations to growth assets (shares, property, infrastructure) have historically outperformed over 10+ years. However, this comes with more volatility.
- Unlisted assets: Large industry funds hold significant allocations to unlisted infrastructure and property. These assets typically provide stable, above-market returns and lower correlation to sharemarket swings — a structural advantage.
- Fee efficiency: Lower fees directly improve net returns. Even 0.3% lower fees compounded over 10 years on a $100,000 balance is approximately $32,000.
- Active vs passive management: Most large industry fund defaults are actively managed. Some funds offer indexed options with lower fees. The evidence on whether active management outperforms passive after fees is mixed.
The Impact of a 1% Performance Difference Over 10 Years
| Starting balance | 7% p.a. return | 8% p.a. return | Difference |
|---|---|---|---|
| $100,000 | $196,715 | $215,892 | $19,177 |
| $200,000 | $393,430 | $431,785 | $38,355 |
| $300,000 | $590,145 | $647,677 | $57,532 |
Illustrative only — actual returns vary. Past performance is not a reliable indicator of future performance.
Frequently Asked Questions
Which super fund has the best 10-year return? This varies year to year and depends on the option compared (balanced vs high-growth). Historically, AustralianSuper Balanced, Hostplus Balanced, and Australian Retirement Trust have consistently ranked among the top performers. Check the current APRA heatmap for the most up-to-date rankings.
Should I switch to the highest-returning fund? Past returns are not a guarantee of future returns. The highest-returning fund over the past 10 years may not maintain that position. Evaluate fees, risk profile, insurance, and member services alongside returns.
Do returns include franking credits? Yes — Australian super funds can pass through franking credit refunds from Australian share dividends, boosting effective returns. This is factored into the reported net investment returns.
For more: Best Performing Super Funds, APRA Heatmap Guide, How to Choose a Super Fund. For advice on fund selection, speak with a licensed financial adviser via MoneySmart.