How do we rank super funds to get our top picks?

We rely on our proprietary algorithm to get our top super fund picks, as seen on our best super funds guide. Developed by Finder's data scientists and superannuation experts, our algorithm calculates hundreds of different data points to rank Australian super funds against a set of criteria.

The algorithm we've developed works behind the scenes to do the hard work for you when comparing super funds.

The super fund products we compare

Our algorithm compares the default product offered by more than 50 superannuation funds including retail, member-owned and industry super funds. Most of these are MySuper products and can be either a pre-mixed balanced/growth portfolio option or a lifestage/lifecycle investment option (more on how we treat lifestage options below).

Our algorithm does not look at every superannuation product available in the market. We have excluded the additional super investment products offered by funds outside of their default product. For example, we didn't look at the high growth, conservative, indexed or ethical investment option offered by the funds (unless it was the default option). We also didn't look at individual asset class options.

The reason we've narrowed down our comparison to the default super products is because these are where the majority of Australians have their super invested. Sticking with these funds means our algorithm can compare 'apples with apples', and offer a more accurate, useful and fair side-by-side comparison for you.

The performance, fees and investment data for these products is supplied to Finder by leading super research group Chant West.

How do we choose our super fund 'top picks'?

Our superannuation experts select a range of criteria that should be considered for each category. Not only do we select which features should be considered for each category, but we also decide how much weight each different feature should be given towards the super product's overall rank for each category. This is because, depending on the category, some features are more important than others.

Our data scientists then created an algorithm to calculate each super product's rank for each different category, taking into account the various data points and the weighting of those data points. The super product that ranks number one in a certain category is our top pick for that category.

Here's how we treat lifestage investment products.

Some super funds offer one pre-mixed portfolio as the default MySuper product to all members, regardless of their age. Other super funds offer a lifestage investment option as the default MySuper product, which means the investment product will be different depending on your age.

To calculate one single rank for a lifestage product that might have 10+ different life stages within it, we split the product up into three key age groups. We recorded the data points (for example the fees and performance) for members aged 20, 43 and 66. Then, the algorithm takes an average score of these three life stages, and arrives at one final rank for the lifestage super product.

Our superannuation specialists selected these three ages, 20, 43 and 66, so we can get an accurate average rank of the lifestage product for the largest variety of members. Each key age group is considered; young members just joining the workforce, middle-age members with established super balances who are still building their retirement wealth and, lastly, pre-retirees who are protecting their super balance.

By splitting the lifestage product into key age groups, the algorithm can more accurately compare these products against the single balanced or growth products offered by other funds.

• How we choose our 'top super fund for past performance' pick

  Our algorithm takes into account past performance, but please know that past performance is no guarantee of future results.

  For all the funds compared, we look at their past 1, 3 and 5-year performance returns. The algorithm applies more weighting to the 5-year returns than the 1 and 3 year returns, as long-term performance is a more accurate measure of a fund's performance. These returns are for the period ending December 2019.

  We also consider the fees charged by each fund, as fees are always an important point to consider and have a direct impact on performance returns. However, the fee data is given a much lower weighting to the performance data when calculating the fund's overall rank for this category.

  NOTE: Past performance is not a reliable indicator of future performance.

• How we choose our 'top super fund for fees' pick

  For all the funds compared, we look at the annual fees charged to members with a balance of $5,000, $50,000 and $100,000. The annual fee amount includes all admin fees, investment fees and indirect fees charged to members over the course of a year. The fees are supplied by Chant West and are correct as of April 2020.

  We also consider the 5-year performance figure for each fund, however this data point is given a much lower weighting to fees when calculating the fund's overall rank for this category.

• How we choose our 'top super fund for lifestage investing' pick

  For this category we only considered super funds that offered a lifestage investment option as its default option. Of the funds compared, we looked at the annual fees charged on a $5,000, $50,000 and $100,000 balance as well as the past 1, 3 and 5-year performance returns.

  We also looked at the number of different life stages the product offered. Funds that offered more life stages were ranked stronger than those with fewer life stages.

• How we choose out 'top industry super fund' pick

  For this category we only looked at the 15 industry super funds, and compared the default investment option offered by each. Of the funds compared, we looked at the annual fees charged on a $50,000 balance as well as the past 1, 3 and 5-year performance returns. More weighting was applied to the 5-year performance returns than to the 1 and 3 year returns.

  We also looked at the number of different investment options the industry super fund offered. Funds that offered more investment choices were ranked stronger than those with fewer choices.

• How we choose out 'top ethical super fund' pick

  This product is selected as part of Finder's annual Green Awards, which you can read more about here.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 626 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living