Performance figures of superannuation funds over 2010 emphasises the importance of taking a long term investment horizon, when judging fund on their returns, a survey by research house Chant West has shown.
"It's instructive to look at this year's top performers and to note that many of them were well back in the pack in 2009," Chant West director Warren Chant said.
"The lesson, of course, is that you shouldn't judge a fund based on short-term performance."
"If you're making a decision on whether to join or leave a particular fund you should always look back over at least five years and preferably more. That gives you a better perspective and an idea of how the fund has performed through different stages of the investment cycle," he said.
According to Chant West's figures, Health Super MT Growth was the best performing super fund over 2010, giving investors a return of 8.4 per cent.
Over 2009, the fund ranked only in 35th place.
Second best performer last year was Commonwealth Bank of Australia Officers' Superannuation Fund Mix 70, which produced a return of 7.8 per cent.
The year before it came in at 28th position.
Maritime Super was the third best performer at 7 per cent, while over 2009 it did not come further than 55th place in the table of top performers.
Chant said the figures over the last 15 years, show that super fund trustees have achieved their risk and return objectives.
"The annualised return over that period was 6.9 per cent," he said. "The annual CPI [consumer price index] increase over the period was 2.6 per cent, so the outperformance averaged 4.3 per cent per annum."
"And there were two negative years out of 15, so the risk objective was also met," he said.
"It's important to make the point that, when we're talking about objectives, we're really looking at the long term," Chant said.
The research showed that on average super funds still need a further 8 per cent return to regain the level of before the global financial crisis.
"We've already spent more than three years in catch-up mode, and there could still be some obstacles along the recovery path," Chant said.
