MySuper products now have more than $635 billion in assets and account for about one-quarter of Australia's $2.6 trillion superannuation system.
Rainmaker's latest MySuper report shows the sector is growing at twice (19%) the pace of overall superannuation products (10%), even though MySuper's 12-month growth in the December quarter was lower than the September quarter (24%).
Biggest MySuper winners in the December quarter included 30-50 age cohorts in MySuper lifecycle products, which harvested 5% returns on an average. In single investment strategy options, retail products led the returns (4.3%) but followed closely by corporate (4.2%), industry (4.1%), and public sector (3.7%) products.
Strong equities and property performance buoyed gains in the final months of the year, Rainmaker research said. Single investment strategy MySuper products hit a rolling 12 month return of 10.1% - up from 8.1% in the September quarter. Lifecycle MySuper products also swelled their 12-month return to 9.1% from about 8.6% in the previous quarter.
Rainmaker noted the final quarter of 2017 saw MySuper returns jump to a three-year high, being the first double digit average calendar year return since 2013.
This said, Rainmaker's latest Benchmarking report shows the SelectingSuper workplace Default/MySuper Index having a negative monthly return of 0.3% in February.
"The monthly result was underpinned by a relatively large fall in international equities in the month as well as property and infrastructure, partially offset by modest returns in Australian equities and fixed interest. The monthly decline in February is first meaningfully negative month for returns in over a year," Rainmaker noted.
The Benchmark report also shows industry fund AustSafe Super leading all three super performance tables for the 12 months to February. This includes the Workplace (MySuper/Default), Personal (Balanced) and Retirement (Balanced) categories.
Rainmaker noted the top five products across each of these segments returned more than 12% for the 12 months. This is around twice the target long term annual return.