Key Findings from the June 2024 Superannuation Survey by Morningstar

Written by Brendan Dilworth | 12/09/2024 11:49:41 AM

The June 2024 Superannuation Survey, conducted by Morningstar, provides insights into the performance, fees, and net assets of 364 superannuation options in Australia. This report covers both MySuper and Choice options, excluding Transition to Retirement options. The survey captures a wide range of funds across various categories, highlighting the best-performing funds, while also addressing the importance of tailored professional advice for individual financial goals.

Best Performing Funds by Category

1. Balanced Category:

  • Hostplus Conservative Balanced consistently led the table over the three, five, and ten-year periods, demonstrating strong performance and stability.
  • West State Super MySuper performed well over the five and ten-year horizons, while MINE Conservative Balanced Super showed strong returns in the shorter term, particularly over three and five years.
  • Notably, 21 out of 50 options in this category outperformed the Morningstar AUS Balance Target Allocation Net Return AUD, indicating competitive performance across a broad spectrum of funds.

2. Growth Category:

  • Over three years, the ART Balanced Super, Aware Balanced Socially Conscious Super, and ART Lifecycle Balanced Super emerged as top performers.
  • For the five-year period, Brighter Optimiser Multi-Manager Balanced, Aware Balanced Socially Conscious, and Hostplus SRI Balanced Super topped the rankings, showcasing a diverse range of growth strategies focused on both sustainability and ethical investment practices.

3. Aggressive Category:

  • MINE High Growth Super, REST Shares Super, and ART Growth Super were the leading funds over three years.
  • Over five and ten years, MLC Aggressive, UniSuper Sustainable High Growth Super, and REST Shares Super maintained strong performance, reflecting a robust approach to aggressive growth strategies.

Analysis of the Largest MySuper Options

The survey identified the largest options in the growth category, which included:

  • AustralianSuper Balanced
  • Rest Core
  • Hesta Balanced Growth
  • ART Lifestyle Balanced
  • UniSuper Balanced

These options demonstrate substantial assets under management and continue to play a significant role in the superannuation landscape, particularly for members seeking balanced growth.

Understanding Fees Across Superannuation Categories

The report also highlights the importance of understanding total fees associated with superannuation products. Morningstar uses a Total Cost Ratio (prospective) to assess fees, which includes:

  • Investment management fees and costs
  • Administration fees and costs
  • Performance fee costs
  • Total annual dollar-based charges

For the superannuation multisector growth category, the average total cost ratio was around 0.78%. Investors are encouraged to carefully examine these costs, as fees are a constant factor that can erode returns over time.

Key Insights and Recommendations

While the survey presents a range of high-performing funds across multiple categories, it is crucial to remember that these results pertain to portfolios managed by specific fund managers on particular platforms. While these options may offer competitive returns, they may not necessarily be the best fit for every individual. Financial objectives, risk tolerance, and personal circumstances vary significantly, and the potential for better returns may exist elsewhere.

Seeking Professional Advice

Given the complexity and diversity of superannuation options, it is always advisable to consult with a professional financial advisor. An advisor can provide tailored advice, help you understand your risk profile, and craft a strategy that aligns with your unique financial goals. They can also identify opportunities beyond the current scope of fund platforms, potentially unlocking greater returns and financial security for your future.

Final Thoughts

The June 2024 Superannuation Survey underscores the dynamic nature of the superannuation landscape in Australia. While certain funds have shown strong historical performance, the future remains unpredictable, and past performance is not always indicative of future results. A diversified approach, informed by professional advice, remains the best strategy to navigate the complexities of superannuation and secure your financial future.

Read more and download the full report by following the link HERE

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The information provided on and made available through this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs – it may not be appropriate to your situation. Before acting on this information, you should consider it’s appropriateness to your personal situation. The information provided is not intended as, nor is it a substitute for, personal or institutional financial services advice. 

We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Before acquiring any financial product, you should obtain the relevant Product Disclosure Statement (PDS) for any product mentioned and consider its contents before making any decision. Past performance of any product discussed on this website is not indicative of future performance. We do not warrant that any future forecasts are guaranteed to occur.