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QSuper delivers one-year net return of 10.38%

QSuper delivers one-year net return of 10.38%

QSuper delivered the highest return for balanced superannuation options over the year to August, according to data from SuperRatings.

QSuper’s balanced option delivered a net return of 10.38 per cent during the 12 months to 31 August 2019 (see table below). 

Looking just at the financial year to date, QSuper also topped the SuperRatings table, with a net return of 2.75% for 1 July to 31 August.

SuperRatings defines balanced options as those with exposure to growth-style assets of between 60 per cent and 76 per cent. Returns are net of investment fees, tax and implicit asset-based administration fees.

RankFundReturn
1QSuper10.38%
2Australian Ethical 8.09%
3UniSuper8.97%
4AustralianSuper7.38%
5VicSuper7.28%
6Sunsuper6.91%
7IOOF6.87%
8Mercy Super6.84%
9CSC6.83%
10MLC6.44%

The data is from SuperRatings. It refers to the performance of balanced options for the 12 months to 31 August 2019.

How QSuper invests members’ money

QSuper’s balanced option spreads its investments over seven different asset classes.

The breakdown, as of 1 October 2019, was:

  • Equities = 33.1%
  • Fixed interest = 21.1%
  • Infrastructure = 14.9%
  • Cash = 16.6%
  • Real estate = 6.9%
  • Alternative assets = 6.0%
  • Commodities = 1.4%

The equities allocation of 33.1 per cent was divided into three different categories:

  • International shares = 21.2%
  • Australian shares = 6.2%
  • Private equity = 5.7%

How to compare superannuation

All things being equal, a superannuation fund that delivers higher returns is superior to one that delivers lower returns.

However, superannuation is a long-term investment, and is subject to short-term fluctuations, so it’s generally a good idea to assess a fund’s performance over the longer term.

ASIC, the financial services regulator, advises Australians to pick a fund that has performed well over the past five years.

Here are three other things ASIC says you should look for when comparing super funds:

What to compareWhat to look for
FeesTry to find a fund with lower fees
Investment optionsSearch for options that suit your needs and risk threshold
InsuranceLook at what’s available and how much it costs

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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