Understanding your super’s investment performance
Besides the family home, for many Australians, super will be the most valuable asset you own. And lasting from your first job to your last (and beyond), it’s also the longest investment you may ever have.
Generally, you can’t access your super before you turn 60. Though that may seem a long way away, it’s important to understand how your super is invested, and how your investment returns will impact what your retirement may look like.
How we invest your money
At ART, you have flexibility to choose from a range of investment options, however if you don’t make an investment choice, we’ll invest your super in our MySuper investment option – the Lifecycle Investment Strategy.
If you’re under 50 years of age and in the Lifecycle Investment Strategy, we invest 100% of your super in the High Growth Pool. Once you turn 50, we gradually move your investments into a mixture of the High Growth Pool, the Balanced Pool and the Cash Pool. Your investments become more conservative as you move through your 50s and 60s to reduce any potential impact of a market downturn in the years right before you retire.
Graph 1
Indicative image only. Read the Super Savings Investment Guide available at your employer’s microsite for full details of how the Lifecycle Investment Strategy works.
Inside the High Growth Pool and Balanced Pool, investments are in a combination of Australian shares, International Shares, Unlisted Assets and Alternatives, Fixed Income and Cash – as shown in Graph 2 below:
Graph 2
Source: Australian Retirement Trust
A look at investment returns
As your investment with ART could last decades, it’s important to focus on the longer-term returns achieved, instead of the short-term ups and downs of the market. Our returns shown below are based on the 10 years to 31 March 2025.
Graph 3
10 year returns p.a. (%) to 31 March 2025
Source: ART, Refinitiv, SuperRatings Fund Crediting Rate Survey 31 March 2025. Past performance is not a reliable guide to future performance. Investment returns are shown net of investment fees and costs, transaction costs and applicable taxes. Last observation is 31 March 2025.
But what does this mean in dollar terms, and how big an impact does even a 1% difference in returns make to your portfolio?
The following graph shows how much money you would have from an initial investment of $10,000 if invested in the High Growth Pool or the Balanced Pool over the last 10 years to 31 March 2025.
Graph 4
31 March 2015 to 31 March 2025
Cumulative value of $10,000
Past performance is not a reliable indicator of future performance. Investment returns are after investment fees and costs, transaction costs, and applicable taxes.
Source: Australian Retirement Trust. From 1 July 2024 investment performance is after investment fees, transaction costs and applicable taxes, but before administration fees. You should consider this when comparing returns between options. Each of the above options has a different objective, risk profile, asset allocation and investment style which may also change from time to time. Changes to inflation, fees, asset allocations, option objectives and risk also affect the returns of any investment option. This graph is provided for general information purposes only and it's not a substitute for financial advice, so you shouldn't rely on it when making a decision about a financial product. Before making a decision, you should think about getting advice from a professional financial adviser.
SuperRatings
Often when looking at investment performance, super funds will reference SuperRatings - as shown in Graph 3 above.
SuperRatings is a superannuation research and consulting company. Each month they collect and publish the performance returns for Australia’s major Master Trusts and Not for Profit funds. They are a widely used benchmark in the industry for relative super fund investment performance.
In Graph 3, the returns shown are for the ‘SR50 Growth Index’ which represents diversified investment options with a growth assets ratio between 77% and 90%. International shares are an example of a growth asset.
The results show that for the 10 years to 31 March 2025, the ART High Growth Pool achieved a return of 8.77% p.a. which is 1.43% p.a. higher than the return achieved by the median fund in the SuperRatings SR50 Growth Index.
A small difference each year makes a big difference over time
Einstein called compound interest the 8th wonder of the world. When your investment returns for a particular year, themselves earn investment returns the following year, this compounding effect can make a big difference to your final balance.
Let’s look at a case study:
Eva is 30 years old, earning $90,000 per year in her job in marketing. Her current super balance is $50,000.
Eva receives her compulsory employer Superannuation Guarantee of 12% but doesn’t make any additional contributions.1
What are the different outcomes if she receives a net return of 5%, 6% or 7% p.a. until age 65?
Graph 5
These results were obtained using the Australian Retirement Trust Retirement calculator, member information outlined earlier and the assumptions and limitations that form the basis of the calculator and can be found at www.australianretirementtrust.com.au/learn/tools/retirement-calculator. Investment returns used are net of investment fees and taxes. Assumed rate of return is not linked to any particular investment option or strategy. All amounts are in today’s dollars and exclude insurance premiums.
Investments with higher returns generally have increased risks and can experience greater return volatilities, especially over short to medium term. This case study is provided for illustrative and educational purposes only and the members shown are not real. Additionally, figures may be rounded for ease of understanding. You should seek advice from a qualified licensed professional regarding your own circumstances.
As the graph shows, compounding returns of 7% over 35 years will deliver a balance of over $715,000 – nearly $250,000 more than a fund returning just 5% annually.
To find out more about ART’s investment returns visit art.com.au/performance.
You can also find out more about ART’s investments in our investment reports here.
1. The compulsory employer Super Guarantee (SG) rate is 11.5% for the financial year 2024/25. From 1 July 2025 the SG rate will rise to 12%. Figures shown in the graph for net investment returns are based on the 12% SG.