Super fund performance comparison looks simple on the surface — one fund returned 12% last year, another returned 8%, so pick the first one. But this approach leads to poor decisions. Short-term returns are dominated by luck and timing, not skill. This guide explains how to compare super fund returns properly, using the tools and data available to every Australian.
Past performance is not a reliable indicator of future performance. This is general information only — not a personal recommendation.
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Why 1-Year Performance Data Is Misleading
In any given year, the top-performing super fund is often one that had a very high allocation to the asset class that happened to do best that year. For example:
- In 2021, funds heavily weighted toward global tech shares outperformed
- In 2022, funds with heavy fixed interest exposure lost value (rising interest rates hit bond prices)
- In 2023, growth-heavy funds recovered strongly
A fund that was #1 in 2021 might have been bottom-quartile in 2022. One-year rankings shuffle dramatically year to year.
The only meaningful performance timeframe for super is 7–10 years minimum — long enough to capture a full market cycle including at least one major downturn.
What to Compare — The Right Metrics
1. Net Investment Return (After Fees and Tax)
The only return figure that matters for members is the net return — what goes into members’ accounts after the fund deducts investment management fees, administration costs, and the 15% tax on earnings within super.
Gross returns (before fees) overstate what members actually receive. Always confirm whether a quoted return is gross or net.
2. Compare Like With Like
Always compare the same investment option category:
- Balanced vs balanced
- Growth vs growth
- High growth vs high growth
Comparing an aggressive high-growth option (90% shares) against a balanced option (55% shares) is like comparing a sprint to a marathon. The options have different risk profiles, different purposes, and different expected return ranges.
3. The Standard: Balanced/MySuper Option Over 10 Years
The most useful benchmark for most Australian super members is the 10-year net return of the fund’s default balanced or MySuper option. This is the option most members are in, and 10 years is the minimum timeframe that captures meaningful performance history.
APRA’s Tools for Performance Comparison
The Superannuation Heatmap
APRA’s annual Heatmap rates every MySuper product in Australia across:
- Net investment returns vs a risk-adjusted benchmark
- Fees and costs vs benchmark
- Sustainability and scale
Colour coding:
- Green — top performance relative to benchmark
- Yellow — close to benchmark
- Red — significantly below benchmark
The Heatmap is publicly available at apra.gov.au/superannuation-heatmap. If your fund’s MySuper product is rated red on net returns, it is underperforming its benchmark and members are receiving less than they should.
The Annual Performance Test
Since 2021, APRA has run an annual performance test. A fund fails if it underperforms its benchmark by more than 0.5% per year over 8 consecutive years. Funds that fail must:
- Notify their members in writing
- Display a warning on their website and marketing materials
Since 2024, the test covers choice (non-default) products as well as MySuper defaults.
The YourSuper Comparison Tool
APRA and the ATO operate the YourSuper Comparison Tool at moneysmart.gov.au. It allows you to compare MySuper products side-by-side on:
- Annual fees
- 5-year and 7-year net investment returns
- Whether the fund passed or failed the Performance Test
This is the simplest starting point for comparing your fund against alternatives.
Industry Funds vs Retail Funds — The Performance Gap
Over long periods, Australian industry super funds have consistently outperformed retail super funds on a net-of-fee basis.
Performance Differential (Approximate, Long-Run)
Based on APRA data over rolling 7–10 year periods:
| Fund Category | Average Annual Net Return (Balanced Option, 10 years) |
|---|---|
| Top-quartile industry funds | 8.0–9.5% |
| Average industry fund | 7.0–8.5% |
| Average retail (master trust) fund | 6.0–7.5% |
| Bottom-quartile retail funds | 4.5–6.0% |
Approximate figures based on APRA Annual Superannuation Bulletin and Heatmap data. Ranges are broad and individual funds vary significantly. Not all industry funds outperform, and not all retail funds underperform. Past performance is not a reliable indicator of future performance.
Why the Gap Exists
The sustained performance differential between industry and retail funds is primarily explained by three structural factors:
1. Fee structure. Industry funds are not-for-profit — there are no shareholders to pay. Retail funds are typically owned by financial institutions that distribute profits to shareholders, creating a higher cost base.
2. Unlisted asset exposure. Top Australian industry funds have historically allocated 20–35% of their balanced portfolios to unlisted assets — direct property, infrastructure, private equity. These assets have delivered strong risk-adjusted returns, particularly in the low-interest-rate environment of the 2010s.
3. Scale. Larger funds achieve lower unit costs on transactions, custody, and management. As industry funds have grown (AustralianSuper, Aware Super, Australian Retirement Trust are among the world’s largest funds by assets), their cost efficiency has improved.
Reading a Super Fund’s Performance Figures — A Checklist
When reviewing a super fund’s advertised performance data:
- Is the return figure net of fees and taxes, or gross?
- What investment option does the return apply to? (balanced, growth, high growth?)
- What time period is quoted? (1 year is not useful; 5–10 years is)
- Has the fund passed the APRA Performance Test?
- Is the fund’s option rated green or red on the APRA Heatmap?
- Is the comparison being made against a like-for-like option in another fund?
Frequently Asked Questions
What is a good super fund return? For a balanced investment option over 10 years (the most common comparison), a net return of 7–8% per year or above is generally considered strong performance in the Australian context. Returns below 6% per year in a balanced option over 10 years would warrant investigation, particularly relative to similar funds.
How do I check if my super fund has failed the performance test? Your fund is required to notify you in writing if it fails. You can also check the APRA Heatmap, or use the YourSuper Comparison Tool at moneysmart.gov.au which shows each fund’s test result.
Does a good 10-year return guarantee future performance? No. Past performance is not a reliable indicator of future returns. However, consistent long-run performance relative to benchmark is one of the better available signals of a well-run fund with a sound investment strategy. It is more useful than short-term performance.
My fund had a negative return last year. Should I switch? One year of negative returns does not indicate a poor fund — most well-run growth funds experience occasional negative years. Review 5-year and 10-year returns, check the APRA Heatmap, and compare against similar funds before making any decision. Switching after a bad year (i.e. selling low) is a common mistake.
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.