2020 is the eighth year Stockspot has researched Australia’s largest super funds for our annual Fat Cat Funds Report.
In this year’s research we compared 600 multi-asset investment options offered by Australia’s largest 100 super funds to find the best super funds – and the worst. The funds were assessed on how they performed, after fees, compared to other super options of similar risk over five years.
Download the report now, or keep reading to compare your super fund.
- Top performing super funds – Fit Cat Funds
- Worst performing super funds – Fat Cat Funds
- Best performing aggressive growth super funds
- Best performing growth super funds
- Best performing balanced super funds
- Best performing moderate super funds
- Industry vs retail super fund performance
- How does Stockspot compare?
- Lower fees – industry funds have 30% lower fees than the average retail fund. Not having a profit motive means they are not profit driven, but that doesn’t mean that they are all “low cost”.
- Asset allocation – industry funds tend to have a higher allocation to unlisted assets such as property, infrastructure and private equity which have enjoyed strong recent returns.
Best super funds 2020
2020 Gold Fit Cat Fund Award – Unisuper
In 2020, Unisuper took out the Gold Fit Cat Fund award for the most top performing funds over five years. UniSuper manages over $80b of Australian’s superannuation investments, and after taking out the Silver spot last year, takes out the top prize with seven Fit Cat Funds.
| UniSuper Fit Cat Fund Options |
| Unisuper – Sustainable High Growth |
| Unisuper – High Growth |
| Unisuper – Growth |
| Unisuper – Sustainable Balanced |
| Unisuper – Balanced |
| Unisuper – Conservative Balanced |
| Unisuper – Conservative |
2020 Silver Fit Cat Fund Award – IOOF
The Silver award goes to IOOF with five Fit Cat Funds.
| IOOF Fit Cat Fund Options |
| IOOF – MultiMix Growth |
| IOOF – MultiMix Balanced Growth |
| IOOF – MultiMix Moderate |
| IOOF – MultiMix Conservative |
| IOOF – MultiMix Capital Stable |
2020 Bronze Fit Cat Fund Award – Australian Super
The Bronze award goes to Australia’s largest superannuation fund, Australian Super, who manage more than $160 billion for over two million members. Australian Super had four Fit Cat Funds and takes out this award for the second year in a row.
| Australian Super |
| Australian Super – High Growth |
| Australian Super – Balanced |
| Australian Super – Conservative Balanced |
| Australian Super – Stable |
What did the top three super funds have in common? Low fees!
Despite having different investment strategies, the one factor these three funds all had in common was investment fees of well under 1%, with an average fee of 0.71%
Congratulations to our three Fit Cat Fund winners for 2020. Don’t forget to check on their performance in our Fat Cat Funds Report next year.
Worst super funds 2020
Last place: AMP
AMP has topped our list for the most Fat Cat Funds, and has been in the Fat Cat Fund category for eight years in a row. AMP’s share price has fallen by almost 70% since we published the first Fat Cat Funds Report in 2013 and billions has been withdrawn from underperforming AMP products.
AMP has also made history by being the first Fat Cat Fund to deliver a negative return over 5 years with one of their options delivering a total return of -10.5%.
Watch our AMP Fat Cat Fund video produced in partnership with The Chaser back in 2016
| AMP |
| Flexible Lifetime Super (FLS) – AMP Capital Premium Growth |
| Flexible Lifetime Super (FLS) – AMP Capital Multi-Asset |
| Flexible Lifetime Super (FLS) – BlackRock Global Allocation |
| North – North Professional Alternative Balanced |
| Flexible Lifetime Super (FLS) – AMP Capital Dynamic Markets |
| Flexible Lifetime Super (FLS) – ipac Income Generator |
| Flexible Lifetime Super (FLS) – Professional Moderately Conservative |
| Flexible Lifetime Super (FLS) – Schroder Real Return |
| Flexible Lifetime Super (FLS) – AMP Capital Ethical Leaders Conservative Fund |
| Flexible Lifetime Super (FLS) – Future Directions Conservative |
| Flexible Lifetime Super (FLS) – Professional Conservative |
| Flexible Lifetime Super (FLS) – AMP Conservative |
Second last place: OnePath
OnePath came in 2nd place, with 11 Fat Cat Funds. For eight years we have pressured OnePath to respond by reducing the fees in these funds or move clients to better performing options.
Now under a Fit Cat Fund ownership, in IOOF, we can only hope they look to lower its fees and improve their performance.
| OnePath |
| OnePath Masterfund – OnePath Select Leaders |
| OnePath Masterfund – OptiMix Balanced |
| OnePath Masterfund – OnePath Active Growth |
| OnePath Masterfund – OptiMix Growth |
| OnePath Masterfund – OnePath Managed Growth |
| OnePath Masterfund – OptiMix High Growth |
| OnePath Masterfund – OnePath High Growth |
| OnePath Masterfund – OnePath Tax Effective Income |
| OnePath Masterfund – OptiMix Moderate |
| OnePath Masterfund – OptiMix Conservative |
| OnePath Masterfund – OnePath Balanced |
| OnePath Masterfund – OnePath Diversified Credit |
| OnePath Masterfund – OnePath Capital Stable |
Third last place: Macquarie
Macquarie takes the award for third last-place thanks to their complex product suite, high fees and poor performing investment options.
| Macquarie |
| Macquarie Superannuation Plan – ING Managed Growth |
| Macquarie Superannuation Plan – BT W Balanced Returns |
| Macquarie Superannuation Plan – Aberdeen MA Real Return |
| Macquarie Superannuation Plan – BT WS Conservative |
| Macquarie Superannuation Plan – UBS Defensive |
Want to compare your super even further? Read the full 2020 Fat Cats Fund Report here.
Comparison of different super fund categories
Super funds that were analysed by Stockspot go by many names: balanced, diversified, moderately conservative, moderate and capital stable.
Investors need to be careful to understand the asset mix of their fund, not rely on how it has been named.
Find out more about how to choose the right super fund.
Best and worst performing aggressive growth super funds
| TOP 10 (FIT CAT FUNDS) | 5 YEAR RETURN (P.A.) | BOTTOM 10 (FAT CAT FUNDS) | 5 YEAR RETURN (P.A.) | |
| 1 | Prime Super – Alternatives | 9.0% | AMP – FLS – Capital Premium Growth | 0.6% |
| 2 | Unisuper – Sustainable High Growth | 9.0% | OnePath – OnePath Select Leaders | 1.4% |
| 3 | Unisuper – High Growth | 8.7% | OnePath – OptiMix Balanced | 2.3% |
| 4. | HOSTPLUS – Shares Plus | 8.0% | OnePath – OnePath Active Growth | 2.4% |
| 5 | CBUS – High Growth | 8.0% | OnePath – OptiMix Growth | 2.6% |
| 6 | Australian Super – High Growth | 7.7% | OnePath – OnePath Managed Growth | 2.6% |
| 7 | Unisuper – Growth | 7.7% | OnePath – OptiMix High Growth | 2.9% |
| 8 | Equipsuper – Growth Plus | 7.6% | Zurich – Zurich Managed Growth (NEF) | 3.1% |
| 9 | Club Plus – High Growth | 7.6% | Macquarie – ING Managed Growth | 3.3% |
| 10 | IOOF – MultiMix Growth | 7.5% | OnePath – OnePath High Growth | 3.4% |
Aggressive growth super funds are funds with at least 80% in growth assets like shares and property and generally targeted at investors with a very long investment horizon given that they can be very volatile over the short term.
The top performing growth funds had very little in defensive assets such as bonds and cash. This helped them achieve returns of 7-9% p.a. over five years, as growth assets have enjoyed strong returns in recent years despite the COVID-19 fall.
However, the equivalent Vanguard index fund still beat 78% of high growth funds over the past five years.
Compare aggressive growth super funds with index funds (ie. Vanguard)
| COMPARATIVE INDEX | % |
| Vanguard High Growth Fund after investment fees and accumulation super taxes (No Stockspot comparison available) | 6.7% |
| % of aggressive growth super funds that were beaten by Vanguard | 78% |
The bottom funds in this category typically had more cash and bonds, poor outperforming activate managers, and higher fees. The average fee in this category was 2.8% which dragged performance down to 0.6-3.4% p.a.
| AVERAGE FEE (P.A.) | AVERAGE 5 YEAR RETURN (P.A.) | |
| Top 10 | 1.0% | 8.1% |
| Bottom 10 | 2.8% | 2.5% |
OnePath featured heavily in the Fat Cat Fund list with seven of the worst 10 performing funds. Meanwhile we saw industry funds (e.g. UniSuper and AustralianSuper) take out the top 10 performing super funds.
Best and worst performing growth super funds
| TOP 10 (FIT CAT FUNDS) | 5 YEAR RETURN (P.A.) | BOTTOM 10 (FAT CAT FUNDS) | 5 YEAR RETURN (P.A.) | |
| 1. | HESTA – Eco Pool | 8.6% | AMP – FLS – AMP Capital Multi-Asset | 1.2% |
| 2. | Unisuper – Sustainable Balanced | 7.5% | OnePath – OnePath Tax Effective Income | 1.3% |
| 3. | Australian Super – Balanced | 7.4% | OnePath – OptiMix Moderate | 2.0% |
| 4. | Macquarie – Macquarie OneChoice | 7.3% | Zurich – Zurich Balanced (NEF) | 2.5% |
| 5. | Unisuper – Balanced | 7.3% | AMP – FLS – BlackRock Global Allocation | 2.6% |
| 6. | AON – smartMonday MySuper – Age 45 | 7.0% | Macquarie – BT Balanced Returns | 2.9% |
| 7. | IOOF – MultiMix Balanced Growth | 6.8% | TAL – Tal Performance | 2.9% |
| 8. | Fiducian – Balanced Fund | 6.6% | AMP – North Professional Alternative Balanced | 3.2% |
| 9. | Future Super – Balanced Impact | 6.6% | Perpetual WealthFocus – Diversified Growth | 3.3% |
| 10. | QSuper – Lifestime Aspire 1 | 6.5% | AMP – FLS – Responsible Investment Leaders Balanced | 3.6% |
Growth super funds have 60-80% in growth assets like shares and property and generally targeted at investors with a long investment horizon given that they can be quite volatile over the short term.
Industry funds such as HESTA, UniSuper and Australian Super were in the top 10 growth super funds.
The top performing funds in this group had a relatively small (27%) allocation to bonds and cash. This allowed them to return 6-8% p.a. over five years, with the higher allocation to growth investments helping them to enjoy a strong few years of returns. However, a simple index fund still beat 80% of all growth funds over the past five years.
| COMPARATIVE INDEX | % |
| Average growth super fund return | 5.1% |
| Stockspot return after investment fees and accumulation super taxes | 7.1% |
| Growth super funds that were beaten by Stockspot | 97% |
Retail super funds such as AMP, OnePath and Zurich performed the worst out of growth super funds. The bottom funds in this group typically had a higher (33%) allocation to cash and bonds and high fees of 2.1% on average. This pulled down their performance to 1-3% p.a.
| AVERAGE FEE (P.A.) | AVERAGE 5 YEAR RETURN (P.A.) | |
| Top 10 growth super funds | 1.1% | 7.2% |
| Bottom 10 growth super funds | 2.1% | 2.5% |
Best and worst performing balanced super funds
| TOP 10 (FIT CAT FUNDS) | 5 YEAR RETURN (P.A.) | BOTTOM 10 (FAT CAT FUNDS) | 5 YEAR RETURN (P.A.) | |
| 1. | WA Local Government – Sustainable Future | 6.9% | AMP – FLS – AMP Capital Dynamic Markets | -2.2% |
| 2. | Australian Super – Conservative Balanced | 6.2% | OnePath – OptiMix Conservative | 1.7% |
| 3. | IOOF – MultiMix Moderate | 5.7% | Zurich – Zurich Capital Stable (NEF) | 1.9% |
| 4. | Public Sector Super – PSSap Income Focused | 5.7% | OnePath – OnePath Balanced | 2.2% |
| 5. | QSuper – Lifetime Focus 2 | 5.6% | MLC – Inflation Plus Portfolios – Moderate Portfolio | 2.4% |
| 6. | ClearView – IPS Enhanced Index 50 | 5.6% | Macquarie – Aberdeen MA Real Retrn | 2.6% |
| 7. | Unisuper – Conservative Balanced | 5.6% | AMP – FLS – ipac Income Generator | 2.7% |
| 8. | AMG Super – AMG Balanced | 5.3% | AMP – FLS – Professional Moderately Conservative | 3.0% |
| 9. | HESTA – Conservative Pool | 5.3% | Perpetual – Diversified | 3.1% |
| 10. | MyLifeMyMoney – Moderately Conservative | 5.3% | AMP – FLS – Future Directions Moderately Conservative | 3.1% |
Balanced super funds are funds with 40-60% in growth assets like shares and property and generally targeted at investors with a medium to long investment horizon.
The top performers in this group had a 46% allocation to fixed income and cash. This helped them achieve returns of 5-7% p.a. over five years. However, a simple index fund beat an extraordinary nine of every 10 balanced funds over the past five years.
| COMPARATIVE INDEX | % |
| Average balanced super fund return | 4.1% |
| Stockspot return after investment fees and accumulation super taxes | 6.6% |
| Balanced super funds that were beaten by Stockspot | 99% |
| AVERAGE FEE (P.A.) | AVERAGE 5 YEAR RETURN (P.A.) | |
| Top 10 balanced super funds | 0.8% | 5.7% |
| Bottom 10 balanced super funds | 2.0% | 2.0% |
Best and worst performing moderate super funds
| TOP 10 (FIT CAT FUNDS) | 5 YR RETURN (P.A.) | BOTTOM 10 (FAT CAT FUNDS) | 5 YR RETURN (P.A.) | |
| 1. | Macquarie – Macquarie Life Capital Stable | 5.8% | AMP – FLS – Schroder Real Return | 1.7% |
| 2. | Australian Super – Stable | 5.3% | Macquarie – BT Conservative | 1.8% |
| 3. | IOOF – MultiMix Conservative | 4.8% | MLC – Inflation Plus Portfolios – Conservative | 1.8% |
| 4. | Prime Super – Conservative | 4.8% | TAL – TAL Capital Protected | 1.9% |
| 5. | Unisuper – Conservative | 4.6% | Macquarie – UBS Defensive | 1.9% |
| 6. | Bendigo – Conservative Index | 4.5% | AMP – FLS – AMP Capital Ethical Leaders Conservative Fund | 2.1% |
| 7. | Media Super – Stable | 4.5% | AMP – FLS – Future Directions Conservative | 2.2% |
| 8. | ClearView – IPS Enhanced Index 30 | 4.5% | AMP – FLS – Professional Conservative | 2.3% |
| 9. | Fiducian – Fiducian Capital Stable Fund | 4.5% | AMP – FLS – AMP Conservative | 2.5% |
| 10. | IOOF – MultiMix Capital Stable | 4.5% | MLC – Horizon 2 Capital Stable Portfolio | 2.7% |
Moderate super funds are funds with 20-40% in growth assets like shares and property and generally targeted at investors with a short to medium investment horizon given that they can are relatively stable over the short term.
Industry and public sector funds made up 5 of the 10 Fit Cat Funds.
The top performing funds in this group had a 67% allocation to bonds and cash. This helped them achieve returns of 4-6% p.a. over five ye
The bottom performing funds in this group typically had a slightly higher allocation to cash and bonds as well as higher fees. This reduced their performance to 2-3% p.a, mainly for the retail funds such as AMP, Macquarie, and MLC.
The more conservative the portfolio, the harder it is to beat an index fund portfolio. See the table below as an example.
| COMPARATIVE INDEX | % |
| Average moderate super fund return | 3.5% |
| Stockspot return after investment fees and accumulation super taxes | 6.2% |
| Moderate super funds that were beaten by Stockspot | 100% |
Due to the lower returns from moderate super funds, older Australians and pensioners in lower risk super strategies need to be even more sensitive to fees.
Compare the fees of the best performing moderate super funds with the worst performing:
| AVERAGE FEE (P.A.) | AVERAGE 5 YEAR RETURN (P.A.) | |
| Top 10 | 0.9% | 4.8% |
| Bottom 10 | 1.6% | 2.1% |
Industry vs retail super fund performance
Industry funds (and public sector funds) continue to do better than retail funds. The reason for this is due to:
Large retail funds from AMP and OnePath dominated the Fat Cat Funds with all bottom 10 funds being a retail fund. The common theme is these funds charge higher than average fees.
The bottom performing funds in this group typically also had a 46% allocation to cash and bonds and higher fees.
AMP has also made history by being the first Fat Cat Fund to deliver a negative return over 5 years with their AMP Capital Dynamic Markets investment option delivering a total return of -10.5%. This proves that active fund managers trying to time the market find it very tough, where a simple and passive Stockspot balanced portfolio returned 38% in total over the same 5 year period.
Superannuation Comparison: Our Analysis
Many superannuation funds don’t index
Both Stockspot and the Vanguard Index Fund options have beaten the average Industry fund and approximately 90% of funds in total after fees and taxes. This is largely due to the compounding effect of lower fees.
Additionally, superannuation managers can easily access low cost index funds, yet many choose not to. We believe this is because there are still huge conflicts of interest in the industry.
Super funds would rather pay themselves – their big teams of fund managers, analysts and asset consultants – despite the evidence that they do not add any value to super fund investment returns.
Bigger super funds don’t perform better
We’ve found that that super funds members don’t always enjoy benefits by joining larger funds. In many cases there are added costs as funds grow which lead to higher per-member fees. This is because of the cost of legacy administration systems and active investing.
There are more large funds who are Fat Cat Funds and they are usually between $20 billion and $100 billion in size. The best performing funds tend to either be between $5 and $10 billion or over $100 billion in size.
We expect more consolidation and merging in the industry, having already seen the likes of Media Super merging with CBUS, and First State, WA Super and VicSuper merging to create a $130b fund in September 2020, and more recently NGS Super agreeing to merge with Australian Catholic Super (ACS). Find out how to choose the right super fund here.
Compare your superannuation fund Stockspot investing
| AVERAGE SUPER FUND 5 YEAR RETURN (P.A.) | STOCKSPOT 5 YEAR RETURN AFTER FEES AND TAXES (P.A) | STOCKSPOT PERFORMANCE | |
| Growth | 5.1% | 7.1% (Topaz) | Top 3% |
| Balanced | 4.1% | 6.7% (Emerald) 6.6% (Turquoise) | Top 1% Top 1% |
| Moderate | 3.5% | 6.2% (Sapphire) 6.1% (Amethyst) | #1 #2 |
If you aren’t happy with your superannuation fund, you have a few options.
You can switch your super fund because there are some super funds who offer indexed super options with low fees and consistent performance.
If you’re ready to invest outside of your superannuation, low cost indexing continues to be the best way for Australians to get consistent returns.
Millions of working Australians in default super funds would benefit greatly if all their super money went into a low-cost index fund, rather than paying the large salaries of people in the funds management industry.
Stockspot for SMSFs – get the most of out of your super
Stockspot is available to SMSFs who may want to get the most out of their retirement fund.
While Stockspot is only available to SMSFs, many super funds offer similar indexed super options with low fees and consistent performance.
Stockspot’s indexed investment portfolios ranked in the top 3% of all super options in Australia after accounting for investment fees and accumulation stage super taxes.
The lower risk (moderate) Stockspot portfolios we offer beat all similar super funds in Australia.
Find out more here.
Find out how Stockspot makes it easy to grow your wealth and invest in your future.
