The SelectingSuper MySuper default index delivered an average return of 7.8% for the 12 months to the end of April 2018.

This is up from 7.4% for the previous month due the impact of a strong 1.7% return during April. The strong monthly April return, the ninth positive monthly return experienced over the past 12 months, reverses the effects of the negative returns that occurred during February and March.

Over three years the SelectingSuper MySuper index averaged 6.3% pa, over five years it averaged 8.5% pa and over 10 years it achieved 5.6% pa.

Driving the strong 12 month returns in the SelectingSuper MySuper index were the 6% return for Australian equities, the 12% return for international equities, and the 5% return for global infrastructure. But offsetting this were returns of 2% each for Australian and international fixed and cash, and 1% for listed property.

These results reward MySuper products with high growth investment strategies and penalize funds that are excessively conservative, said Stephen Fay, Rainmaker's head of superannuation research.

Equities making up more than half the assets of MySuper products explains why these products as a group are performing so well with expectations that 2017-18 is likely to be another strong year for super fund members, said Fay.

Australia's top performing MySuper products

Australia's top performing MySuper products over the past 12 months were HOSTPLUS with 11%, AustSafe with 10.9%, Club Plus with 10.3%, Intrust with 10.2% and Statewide Super with 10.0%.

The top performing personal balanced products were AustSafe with 10.9%, Club Plus with 10.3%, Intrust with 10.2%, AustralianSuper with 9.9% and Catholic Super with 9.8%.

The top performing retirement balanced products were AustSafe with 12.7%, Intrust with 11.3%, Club Plus with 11.1%, Prime Super with 10.9% and MyLife MyPension with 10.8%.

See the following table.

Source: Rainmaker Information                                                                                                      www.selectingsuper.com.au

But there is still huge variation in the returns being achieved by MySuper products, with their returns ranging as low as 3.7% for the 12 months to end April 2018 compared to the top MySuper products that achieved almost 11%.

Over 10 years the variation is almost as wide ranging from highs of 6.8% pa down to lows of 2.6% pa.

"The best performing MySuper products are achieving returns 3-times what the lowest performing products are achieving. Even allowing for the impact of different risk tolerances and fees, these ranges are significant," said Fay.

Segment Performance

Fay said all MySuper products in the top 20 are run by not-for-profit (NFP) funds reinforcing the segment advantage these funds as a group offer over Retail MySuper products as a group.