The top Australian super funds of 2023 revealed
Super funds with aggressive growth strategies delivered the strongest returns
3 min
Impressive share market gains in 2023 boosted the performance of Australian superannuation funds last year. All-growth super funds primarily invested in Australian and international shares delivered an outstanding 13.1 percent return, while conservative super funds containing fewer shares and more defensive assets such as bonds and cash booked a respectable 6.2 percent return.
Chant West has released its annual review of superannuation funds and revealed the top 10 performing funds among those with the median growth strategy. Super investors can choose between several types of strategies depending on their risk tolerance and stage of life. Typically, young Australians may prefer higher growth strategies because they have a longer time horizon to grow their super and can therefore tolerate more risk. Older workers closer to retirement tend to prefer balanced or conservative strategies that aim to preserve capital and deliver lower-risk gains.
Chant West revealed the performance of five different fund strategies common among Australian superannuation funds. All–growth super funds, which comprise 96 to 100 percent growth assets such as shares, delivered a median 13.1 return for investors. High-growth super funds with 81 to 95 percent growth assets delivered an 11.4 percent return. Median growth funds with 61 to 80 percent growth assets delivered 9.9 percent. Balanced funds with 41 to 60 percent growth assets returned 8.1 percent and conservative funds with 21 to 40 percent growth assets returned 6.2 percent.
Chant West senior investment research manager Mano Mohankumar said share markets in Australia and overseas performed well in 2023 and this was the biggest factor in super funds’ gains last year.
Mr Mohankumar said: “International shares was the standout asset class with a tremendous 23 percent return over the year, led by the tech sector which benefitted from advancements in AI. While Australian shares didn’t reach the same level, it still delivered a healthy 12.1percent over the same period.”
Share market returns include share price growth or capital gains, as well as dividends. Defensive assets also provided solid returns last year, with Australian bonds delivering 5.1 percent, international bonds 5.3 percent and cash 3.9 percent.
The top 10 median growth super funds are listed below, with the returns shown being net of investment fees and taxes but before administration fees and financial advisor commissions.
Chant West said the 9.9 percent delivered by median growth funds erased their 4.6 percent loss in 2022. That was the first year in 11 years that median growth funds recorded a fall in value. Mr Mohankumar said super funds had proven their resilience and robustness, particularly during recent years amid a once-in-a-century pandemic, rapidly rising interest rates and a global economic slowdown.
He pointed out that over the long term, Australian super funds have delivered above-target outcomes. He said the typical long-term objective for growth funds is to beat inflation by 3.5 percent per annum, which translates to just over 6 percent returns. “Since the introduction of compulsory super, the annualised return is 7.9 percent and the annual CPI increase is 2.7 percent, giving a real return of 5.2 percent per annum – well above that 3.5percent target,” he said.
“Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020 and the high inflation and rising interest rates in 2022 – super funds have returned 7.3 percent per annum, which is still comfortably ahead of the typical objective.”
BNW Developments has established a Sydney presence, joining Arada and Sobha Realty among the growing number of UAE developers pursuing Australian buyers and development opportunities.
Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
2 minAustralian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
From Italian vegetable-tanned leather to real-world training insight, Australian brand PK9 Gear is redefining what luxury means for discerning dog owners.
Limited to 630 units, Lamborghini’s latest Urus Capsule pushes personalisation further than ever, blending hybrid performance with over 70 bespoke design combinations.
