Best performing super funds of 2023-24 revealed

The results have been tallied and the highest performing super funds for 2023-24 have been revealed, did your fund make the cut?

Australia’s superannuation funds have broadly delivered another year of strong returns in 2023-24 on the back of a stock market boom led by artificial intelligence.

Best performing growth options

The average return across median growth options was 9.1 per cent, according to figures from Chant West, despite an economic climate dominated by inflation and geopolitical tensions.

The positive return is the 13^th profit achieved in the past 15 years, showing superannuation continues an upward trajectory over the long-term.

Mano Mohankumar, Chant West senior investment research manager, says the better-than-expected result was mostly driven by international share market returns.

“International shares was the greatest contributor [to the result], surging 21.5 per cent over the year, led by the strong performance of the tech sector,” he says.

“While not reaching the same heights, Australian shares also had a healthy year returning 11.9 per cent.”

He says funds with the highest exposure to international shares had the best results. Overseas, particularly in the US market, stocks of tech firms involved heavily with AI surged between November 2023 and March 2024, including Nvidia, Microsoft and Google.

“With share markets performing so strongly in FY24, especially international shares, it’s not surprising that the better performing super funds generally had higher allocations to those asset classes,” he says.

Top 10 best performing growth funds

1. Mine Super Growth (10.7 per cent)
2. CFC FirstChoice Growth (10.7 per cent)
3. IOOF Balanced Investor trust (10.7 per cent)
4. Brighter Super Balanced (10.6 per cent)
5. Qantas Super Growth (10.1 per cent)
6. Mercer Growth (10.1 per cent)
7. Australian Retirement Trust – Super Savings Balanced (9.9 per cent)
8. MLC MySuper Growth (9.8 per cent)
9. MLC Balanced (9.6 per cent)
10. Aware Super Balanced (9.6 per cent)

Best performing balanced funds

For the most part, balanced super options outperformed growth options in 2023-24, with those with largest exposure to US tech stocks delivering the double-digit returns.

Analysis from SuperRatings found that “all balanced funds, those with a strategic allocation of between 60 per cent to 76 per cent of their portfolio invested in growth assets, are expected to deliver positive returns to members”.

Kirby Rappell, SuperRatings executive director, says high exposure to shares has delivered a good return this year, but always comes with the risk of sharp falls.

“While this [exposure to shares] has benefited members this year, higher exposure to these assets also comes with increased ups and downs, and we encourage members to learn how their fund’s investment strategy works so they are comfortable with annual and long-term performance outcomes.”

Top 10 best performing balanced funds

1. Hosplus Indexed Balanced (12.2 per cent)
2. Raiz Super Moderately Aggressive (12.1 per cent)
3. CFS Enhanced Index Balanced (11.4 per cent)
4. ESSSuper Balanced Growth (11.1 per cent)
5. MLC MultiSeries 70 (10.9 per cent)
6. Brighter Super Balanced (10.6 per cent)
7. GESB Super My GESB Super Plan (10.4 per cent)
8. Qantas Super Growth (10.1 per cent)
9. Australian Retirement Trust – Super Savings Balanced (9.9 per cent)
10. MLC Balanced (9.6 per cent)

You may notice some funds listed as both growth and balanced, this is to do with different definitions used by different ratings houses.

What is clear though, is that super fund should have delivered at least a 9 per cent return this year, whether growth or balanced. So, if your fund didn’t return at least that, it may be time to look elsewhere.

How well did your super fund do this year? Did it make either of the top 10 lists? Let us know in the comments section below.

Also read: Super funds bounce back after slow start to year