Australia's best risk-adjusted MySuper option revealed

Hostplus has the best three-year returns in default superannuation products but if risk measures are taken into account, another industry fund takes the top spot, according to new Rainmaker research.

HESTA emerged as Australia's best risk-adjusted MySuper product over a three year period to June end.

Overall, the best-performing MySuper options also proved to be the good at managing their risks.

The results are from Rainmaker's RMetrics Report which ranks default superannuation funds based on combined risk-adjusted returns.

EISS Super came out as the least volatile - that is the most stable and predictable - MySuper product. This was followed by Maritime Super, ESSSuper, Super SA Select and BUSSQ.

Club Plus had the lowest number of negative months over the past three years, and was followed by CareSuper, Intrust Super, Hostplus and then ESSSuper.

Rainmaker executive director of research Alex Dunnin said the report dispels the myth that to achieve high returns MySuper products need to take more risk.

"Only five of Australia's most volatile MySuper products achieved above average returns. Funds and members should never be afraid of risk, but shouldn't go looking for it either," Dunnin said.

"Proving the point, Australia's top 10 MySuper products achieved this milestone by taking only average risks."

Dunnin said the important takeaway from the report is that super funds and their members shouldn't only consider the final return figure, they also need to be aware of the consistency of returns over time, which is particularly important for members nearing retirement.

"Certain funds have shown they are capable of protecting the capital of their members while also achieving strong returns," he said.

Read more: MySuperHostplusRainmaker ResearchAlex DunninBUSSQCareSuperClub PlusEISS SuperESSS SuperIntrust SuperMaritime SuperRMetrics ReportSuper SA Select
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