The top 10 best performing super funds over the last decade have been revealed with union-run funds delivering the strongest returns, new data shows.
SuperRatings revealed the top 10 performing funds have produced average, annual returns that were well above the industry average of seven per cent since 2014.
The best balanced option products were all industry super funds with board members from trade unions, and had a 60 to 76 per cent focus on growth-oriented assets.
The best performer Hostplus delivered average annual returns of 8.4 per cent during the past decade, which covered the 2020 Covid pandemic and the most aggressive interest rate rises in a generation.
This super fund for tourism and hospitality workers was established by the United Workers Union and the Australian Hotels Association in 1988.
‘Superannuation remains a long-term investment for most, with many members having several decades of returns before retirement,’ SuperRatings said.
‘It is therefore important to remain focused on longer term returns.’
Australian Retirement Trust, formed in 2022 as a merger between Sunsuper and QSuper for Queensland public servants, was the second best performer with average, annual returns of 8.3 per cent.
The top 10 best performing super funds over the last decade have been revealed with union-run funds delivering the strongest returns, new data shows (stock image)
AustralianSuper, linked with the Australian Council of Trade Unions, was third with average, annual returns of 8.1 per cent.
UniSuper, linked to the National Tertiary Education Union, was fourth with average returns of 7.9 per cent.
Cbus was fifth with average returns of 7.8 per cent.
The super fund is chaired by former federal treasurer Wayne Swan and has links to the Construction Forestry and Maritime Employees Union.
Vision Super, a fund for local government employees that is linked to the Australian Services Union, was sixth having average, annual returns of 7.8 per cent.
Hostplus was in seventh place with average returns of 7.7 per cent.
HESTA, for health and community service workers, was eighth with 7.7 per cent returns.
The fund has board members from the ACTU, Australian Services Union and Health Services Union.
The best performer Hostplus, a super fund for hospitality workers, delivered average annual returns of 8.4 per cent during the past decade (pictured is a Sydney barista)
Aware Super was in ninth place with returns of 7.6 per cent, with a board member from the Health Services Union for a fund that covers NSW and Victoria public sector employees.
CareSuper rounded out the top 10 with average returns of 7.6 per cent, with this fund for white collar administrative professionals linked to UnionsNSW.
Nine of the top 10 funds during the past decade also delivered double-digit returns in 2024, thanks to a booming share market.
The best balanced funds delivered average returns that were better than the industry average of 11.1 per cent last year.
Hostplus’ indexed balanced fund had an even better annual return of 14.2 per cent for 2024.
Only Raiz Super’s moderately aggressive fund did better with a return last year of 14.7 per cent.
But SuperRatings executive director Kirby Rappell said 2025 could be a year of uncertainty, following a shaky start to the year on the Australian share market.
‘Despite the uncertainty in markets, funds have consistently delivered positive outcomes for members over 2024,’ he said.
‘However, 2025 could bring many potential pitfalls and sticking to a long-term strategy is important should we start to see balances falling.’
