Non-retail funds ranked best performers

According to the APRA-based article, not-for-profit and in-house corporate funds dominated the rankings. The top performers included CBH Superannuation (5‑year returns of 7.1%), the Goldman Sachs JB Were staff fund (about 5.2% pa), the Commonwealth Bank staff fund (4.7% pa) and the Reserve Bank of Australia staff fund (4.4% pa).

The APRA figures cited in the article show annualised returns averaged about 2% over the past five years and improved to around 5% when measured over the past eight years.

Of the 50 funds that posted the best returns between 2007 and 2011, 42 were not-for-profit or in-house corporate funds, according to the article.

The article cites APRA figures showing about $346 billion of the nation’s superannuation savings were tied up in funds that delivered below-average returns over the past five years.

The article notes Challenger Retirement Fund was the only retail fund to make the top 50, posting an average five‑year rate of return of about 4.5% to 2011.

Two of the poorer performers named in the article were Motor Trades Superannuation Fund, which averaged a loss of 0.8% over five years, and the Lifefocus retail superannuation fund (about 4,200 members), which posted around −6.3% over the same period.

The best-performing industry scheme mentioned was Catholic Superannuation, with average five‑year returns of about 4.1%. Overall, the article reports not-for-profit and in-house corporate funds generally outperformed many retail funds run by big banks and wealth managers.

The article highlights wide variation in fund performance: not-for-profit and in-house corporate funds dominated the top ranks, retail funds generally lagged (with few exceptions), long‑term returns improve relative to short‑term measures (5% over eight years vs 2% over five), and roughly $346 billion sat in below‑average funds — facts everyday investors can note when reviewing superannuation performance.