Most Australians leave their super in the default fund and never compare performance. Yet over a 30-year working life, the difference between a top-quartile and bottom-quartile fund can amount to hundreds of thousands of dollars in retirement savings — driven primarily by fees and long-run net returns.
This guide uses publicly available APRA data to show which super funds have delivered the strongest long-run returns in their balanced (default) investment options — the category most members are in.
Past performance is not a reliable indicator of future performance. This is general information only — not a personal recommendation.
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Key Takeaways
- 10-year net returns are the most reliable performance metric — short-term returns reflect market luck, not fund skill
- Top-performing balanced funds have historically delivered approximately 7–9% per year net of fees over 10 years
- Fees matter as much as returns — a 1% fee difference on $200,000 costs $2,000 per year
- Use the APRA MySuper Heatmap and ATO YourSuper tool for standardised, objective fund comparisons
- Past performance is not a reliable indicator of future performance
How Super Fund Performance Is Measured
Why 10-Year Returns Matter Most
Any fund can have a good year. What separates a well-run fund from a lucky one is consistent outperformance over long periods — ideally 7–10 years or more.
The main reasons to look at long-run returns:
- Short-term performance is heavily influenced by which assets happened to do well in that period, not by fund skill
- Long-run returns capture full market cycles, including downturns and recoveries
- 10-year net returns (after fees) are the most reliable predictor of the return members actually received
When comparing, always compare the same investment option category — for example, balanced vs balanced, or growth vs growth. Comparing a high-growth option’s 1-year return against a balanced option’s 10-year return is meaningless.
Net Returns vs Gross Returns
Net returns are after fees and taxes. This is what actually lands in members’ accounts. Always use net returns for comparison — gross returns inflate the headline number and don’t reflect what members receive.
The APRA Heatmap
APRA publishes an annual Superannuation Heatmap that rates MySuper (default) products across three dimensions:
- Net investment returns — measured against an asset-allocation-weighted benchmark
- Fees — measured against a benchmark for similar-sized funds
- Sustainability — long-term outlook for viability
Products rated red (worst) on net returns are likely underperforming for their members. The heatmap is publicly available at apra.gov.au.
The Annual Performance Test
APRA runs an annual Superannuation Performance Test for MySuper products and (since 1 July 2024) trustee-directed (choice) products. A fund that underperforms its benchmark by more than 0.5 percentage points per year over 8 years fails the test.
Funds that fail must notify members. If a fund fails two consecutive tests, it cannot accept new members into that product until it improves performance.
Top Performing Super Funds — Balanced Option (10-Year Net Returns)
The following table shows approximate 10-year net return figures for consistently top-performing balanced (default/MySuper) options, based on APRA Heatmap data and fund-published returns. All figures are for the balanced/MySuper default option — not higher-risk growth options.
| Fund | 10-Year Net Return (Approx.) | Fund Type |
|---|---|---|
| AustralianSuper (Balanced) | ~8.0–9.0% p.a. | Industry |
| UniSuper (Balanced) | ~8.0–9.0% p.a. | Industry |
| Hostplus (Balanced) | ~7.5–8.5% p.a. | Industry |
| Australian Retirement Trust (Balanced) | ~7.5–8.5% p.a. | Industry |
| Aware Super (Growth) | ~8.0–9.0% p.a. | Industry |
| Cbus (Growth Plus) | ~8.0–9.0% p.a. | Industry |
| HESTA (Balanced Growth) | ~7.5–8.5% p.a. | Industry |
| Rest (Core Strategy) | ~7.0–8.0% p.a. | Industry |
Approximate figures based on publicly available data as at early 2026. Returns are net of fees and tax within the fund. Different financial year periods, fee structures, and option definitions mean these figures are indicative only and not directly comparable on a precise basis. Always check the fund’s current PDS and APRA’s official heatmap for the most current data. Past performance is not a reliable indicator of future performance.
What These Funds Have in Common
Top-performing industry funds tend to share several structural characteristics:
- High allocation to unlisted assets — direct property, infrastructure, private equity — which have historically provided higher risk-adjusted returns in the Australian market
- In-house investment management — reduced reliance on external managers, lowering investment fees
- Scale — larger funds benefit from lower per-unit transaction costs and better access to unlisted asset deal flow
- Not-for-profit structure — profits are returned to members rather than paid as dividends to shareholders
How to Use Performance Data When Comparing Funds
- Compare like-with-like — balanced option vs balanced option, over 10 years
- Check APRA’s Heatmap — available at apra.gov.au — for the official risk-adjusted performance comparison
- Use the YourSuper Comparison Tool via moneysmart.gov.au — compares MySuper products side-by-side for net returns and fees
- Don’t rely solely on past returns — also check fees, insurance, and whether the fund’s investment strategy has changed materially
- Check if the fund passed or failed the APRA Performance Test — the fund must notify you if it failed
Which Super Funds Have Failed the Performance Test?
APRA publishes the list of funds that fail the annual performance test. Members in failing funds receive notification letters. If you received such a letter, it’s a strong signal to review your options — though it doesn’t automatically mean you must switch.
Funds that have previously failed the test include some retail super products. APRA does not publicly publish a “fail list” mid-cycle, but fund notification letters are required by law.
Performance vs Fees — Which Matters More?
Both matter — but fees are more predictable. A fund with outstanding 10-year performance but high fees may deliver the same (or lower) net return as a fund with average gross returns and very low fees.
The best funds deliver strong net returns after fees. A fund that charges 0.3% with 7.5% gross returns (7.2% net) outperforms a fund that charges 1.5% with 8.5% gross returns (7.0% net).
For a detailed fee comparison, see Super Fund Fees Comparison Australia.
Frequently Asked Questions
Why do industry funds generally outperform retail funds? Over long periods, industry funds have consistently outperformed comparable retail funds on a net-of-fee basis. The main drivers are structural: industry funds are not-for-profit and return all earnings to members, while retail funds return profits to shareholders. Industry funds also tend to allocate more to unlisted assets (property, infrastructure) which have historically provided good risk-adjusted returns. That said, not all industry funds outperform, and some retail products are competitive — individual fund assessment matters.
Can I trust super fund performance tables published by super funds themselves? Fund-published performance figures are required to meet disclosure standards, but be cautious of cherry-picked comparison periods or options. Always cross-reference with APRA’s Heatmap and the YourSuper Comparison Tool for standardised, like-for-like data.
Is the highest-returning fund always the best choice? Not necessarily. A high-returning fund may be achieving those returns by taking higher risk (e.g. 100% growth assets) — which is appropriate for some members but not all. Always check what investment option the return applies to, and whether that option suits your risk tolerance and time horizon.
How often is the APRA Heatmap updated? APRA publishes an updated Heatmap annually, typically in the second half of the calendar year using data from the most recently completed financial year. Check apra.gov.au for the most current version.
See also: Super Fund Performance. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.