Some super results for FY23 with 9.2% return in ‘growth’ option
Superannuation is doing super at the moment according to Chant West, despite the current state of the economy. Super funds have ended the financial year on a high, especially with regards to the growth investment option.
The ‘growth’ option has rung in a return of 9.2% as a median, based on Chant West’s survey of Australian super companies.
Growth is a pre-set investment category in which around 85% is in shares or property, and 15% in fixed interest or cash - or 100% in shares or property for a 'high growth' option.
Compared to the 3.3% loss of last financial year, growth investments are now sitting pretty with their 12th positive return in the past 14 years. Looking forward, everything is tracking well to beat the next return goal of 6%, according to Chant West.
While this level of return is exciting, Chant West senior investment research manager, Mano Mohankumar says “super funds have had a good year with a median return of 9.2%, but returns at that sort of level shouldn’t be thought of as normal. The typical long-term return objective for growth funds is to beat inflation by 3.5% p.a., which translates to just over 6% p.a”.
Why do these stats matter? According to Chant West, the growth investment option is where most Aussies have their super money invested, so this could mean more return on your investments too.
Top performing growth investment options
The Chant West data shows that in the last financial year there were several super companies who had top performing growth funds above the 9.2% return.
Here are the Top 10 performing ‘Growth investment’ funds for the FY23 based on return percentage from Chant West’s report:
- Mine Super Growth
- Vision Super Balanced Growth
- Brighter Super MySuper
- UniSuper Balanced
- Equip Balanced Growth
- Australian Retirement Trust - Super Savings Balanced
- Mercer Growth
- Equip MySuper
- IOOF Balanced Investor Trust
- Aware Super Balanced
If you are interested in changing your super investments we would recommend consulting a super professional. It’s important not to base your investment choices solely on their current performance, as risk is also a factor and past performance does not guarantee future success.
You can also read more about investing in your super with more top performing funds, or learn more about how to save for retirement.