Hostplus named top performing super fund

Hostplus has been ranked the top-performing balanced fund in Australia over one, three, five, seven and 15 years, while UniSuper balanced was the best-performing fund over 10 years.

The industry super fund Hostplus was named Australia’s best-performing super fund for the second year running.  

The fund was named as the top performing fund by both Chant West and SuperRatings.

The fund’s balanced option posted a 12.5 per cent return for the 2018 financial year.

This was stronger than the median return of 9.2 per cent across the industry, according to figures from superannuation consultancy Chant West.

The year’s worst performers managed a respectable return of 6.5 per cent.

The median growth fund has delivered a cumulative return of about 135 per cent since the 2009 low point.

It seen a 72 per cent return since the pre-GFC high in late 2007.

Hostplus’s equity exposure is at 53 per cent, made up of 25 per cent Australian shares, 20 per cent international shares and 8 per cent emerging market shares. 

The second-placed AustSafe MySuper Balanced fund had an 11.4 per cent return.

Statewide Super placed third with an 11.3 per cent return, while AustralianSuper’s balanced option came fourth with an 11.1 per cent return.

Cbus Growth was in fifth place with an 11 per cent return.

Industry funds dominated as the top performers, with every spot in the top 10 and returning an average 10.3 per cent last year compared to retail funds, which averaged 9.3 per cent.

Industry funds also outperformed over the long term, returning 8.1 per cent over the past 15 years compared with their retail's 7.2 per cent.

Hostplus chief executive David Elia told the Australian Financial Review he sees "no end in sight" for the outsized returns industry super funds will be able to deliver from unlisted and alternative assets.

Elia attributes two thirds of Hostplus' outperformance to its long-term investment strategy, which includes heavy allocations to unlisted assets and active management.

Hostplus has invested in infrastructure, including seaports and airports, especially compared to retail funds.

SuperRatings chief executive Kirby Rappell said returns for the 12 months to June were variable.

"We're expecting returns to range anywhere from about 5.5 per cent up to 12.5 per cent," he said.

Returns were driven up by Australian and international shares, which had risen by 13.4 per cent and 12.3 per cent respectively.

"Property delivered about 9.5 per cent for the year," Mr Rappell said.