The research house estimated that the median balanced superannuation option delivered a 2.7 per cent return in December, and 9.6 per cent for the full 2023 calendar year.
This result fully recovered the -4.8 per cent loss from the previous year.
Balanced funds are those in the SR50 Balanced 60-76 Index and all of the top 10 funds returned more 10 per cent.
The top fund overall was Hostplus – Indexed Balanced which returned 13.2 per cent during the year, closely followed by Brighter Super Optimiser Accumulation – Multi-Manager Growth which returned 13.1 per cent.
In third place was ESSSuper Balanced Growth which returned 12.8 per cent, CFS-FC Wholesale Personal – CFS Enhanced Index Balanced which returned 11.9 per cent, and Vision Super – Balanced Growth which returned 11.7 per cent.
Third-place ranking ESSSuper – Balanced Growth (previously Basic Growth) had been the top-performing super fund during the 2022–23 financial year with the $34 billion fund seeing returns of 13.3 per cent during the financial year.
Australia’s two largest superannuation funds – AustralianSuper and Australian Retirement Trust – did not feature in the top 10, but the third-largest one Aware Super came in seventh place with returns of 11 per cent for its Future Saver Balanced option.
Top 10 balanced funds during 2023
| Fund | Annual returns to 31 December 2023 |
| Hostplus – Indexed Balanced | 13.2 |
| Brighter Super Optimiser Accumulation – Multi-Manager Growth | 13.1 |
| ESSSuper Balanced Growth | 12.8 |
| CFS-FC Wholesale Personal – CFS Enhanced Index Balanced | 11.9 |
| Vision Super – Balanced Growth | 11.7 |
| IOOF Employer Super Core – MLC MultiSeries 70 | 11.4 |
| Aware Super Future Saver – Balanced | 11 |
| GESB Super – My GESB Super Plan | 10.7 |
| TWUSuper Balanced | 10.6 |
| HESTA Balanced Growth | 10.5 |
Source: SuperRatings, 19 January 2024
SuperRatings executive director, Kirby Rappell, said: “Members are likely pleased with this year’s performance, with most seeing a full recovery from last year’s losses. Long-term strategy and high levels of diversification continue to result in impressive long-term performance by those managing our retirement savings.
“As we look ahead to what 2024 might bring for super fund returns, ongoing uncertainty means it remains important to set a strategy and stick with it despite the potential for periods of falling balances.”
I noted with interest yesterday that a large industry superannuation fund was no longer the historical returns on it’s Balanced Fund. It is now advertising historical returns on it’s Growth Fund. Buyer beware, prior returns are no guarantee of future returns.