Balanced funds, particularly those with 60 to 70 percent growth allocations, have shown promising results, with more than half of these funds achieving double-digit returns. The Super Ratings SR50 Balanced (60-76) Index reveals the top performers, showcasing impressive figures with Raiz Super Moderately Aggressive leading at 13.8 percent.
Such resilience is noted by Kirby Rappell, Director of SuperRatings, who appreciates the diversity in top-performing funds, demonstrating their capability to provide significant returns despite uncertainties.
Similarly, results within the balanced segment's passive investment options echo strong performances from key US tech stocks and the Commonwealth Bank of Australia. Funds like Raiz Super – Moderately Aggressive continue to lead, delivering substantial returns.
For members aged around 45, the default MySuper Lifecycle options yielded noteworthy returns due to higher allocations to growth assets, although this comes with increased volatility, necessitating an understanding of investment strategies among fund members.
- Raiz Super Moderately Aggressive – 13.8%
- legalsuper – MySuper Balanced – 12.6%
- Hostplus – Index Balanced – 12.0%
- Colonial First State First Choice Wholesale Personal – Enhanced Index Balanced – 12.0%
- Vanguard Super SaveSmart – Growth – 11.8%
Sustainable options also performed commendably, with significant returns aligning closely with their balanced counterparts. Vanguard Super's Ethically Conscious Growth option topped this category, reinforcing the viability of ethical investments.
Kirby Rappell advises members to stay informed about their fund's strategies, emphasizing superannuation's long-term nature and the importance of looking beyond short-term noises. Since its inception in 1992, superannuation has yielded an average annual return of 7.2%, transforming a 1992 investment value significantly today.
The prudent move for members is reviewing their super investment portfolios regularly, ensuring they align with individual life stages and risk tolerance. Diversified investments, providing steady performance amidst fluctuations, are particularly recommended for those nearing retirement.
Rappell stresses the significance of protecting super balances from market extremes, a crucial task for investment teams. While some funds adopting a defensive stance may not capitalize fully during growth periods, their diversified portfolios offer long-term stability.
