AustralianSuper Balanced (MySuper): A Comprehensive Overview

The AustralianSuper Balanced (MySuper) option is one of the most popular default superannuation choices in Australia. It combines growth and defensive assets in a 60/40 split to provide investors with a moderate risk profile and steady returns over time. In this article, we’ll unpack the key features of this fund: its asset allocation, historical performance, fee structure, risk metrics, and who should consider it for their retirement portfolio.

AustralianSuper’s Balanced (MySuper) option maintains a diversified mix of approximately 60% growth assets (equities and property) and 40% defensive assets (fixed income and cash). Growth assets include domestic and international shares, listed property trusts, and infrastructure investments, which fuel long-term capital appreciation. Defensive assets focus on government and corporate bonds, geared to dampen volatility during market downturns and provide predictable income. This 60/40 split aligns with the typical investor profile seeking moderate growth without excessive downside exposure.

Over the past decade, the Balanced (MySuper) option has delivered an average annual return of around 7.0%. In bull markets such as 2017–2019, it captured equity-driven gains, while during market corrections (e.g., early 2020), the defensive sleeve reduced drawdowns to single-digit levels. It’s important to remember past performance is not a guarantee of future results, but this track record illustrates the fund’s ability to smooth returns through cycles. Investors should review performance metrics over multiple time horizons (1, 3, 5, and 10 years) to gauge consistency.

Fees directly impact your long-term balance. AustralianSuper charges a net investment fee of approximately 0.91% p.a. for the Balanced (MySuper) option, which includes administration and investment management costs. There are no member-direct fees or transaction fees for this default option. While this fee is competitive among large default funds, investors should compare it to low-cost alternatives (e.g., index-based options) if minimizing fees is a priority. Remember, a 0.2% difference in fees can erode thousands of dollars over a 30-year period.

With a moderate allocation to equities, the Balanced (MySuper) option is suited to investors with a medium risk tolerance. According to AustralianSuper’s published metrics, the expected volatility (standard deviation) is around 8–10% per annum, with a negative-year probability of approximately 25%. This means there’s a one-in-four chance the fund could post a negative return in any given year. Investors comfortable with occasional dips in value but seeking growth should find this profile appropriate.

The Balanced (MySuper) option is designed as a default for members who neither choose an alternative strategy nor opt for lifecycle options. It suits individuals mid-way through their career (age 35–60) who require both growth potential and downside protection. Retirees or those near retirement may prefer shifting to more defensive options, while younger investors seeking maximum growth might lean towards higher-risk, higher-return choices.

If you’re a member of AustralianSuper and haven’t actively chosen an investment option, you’re already in the Balanced (MySuper) option by default. To confirm or switch, log in to your AustralianSuper online account, navigate to ‘Investment options’, and select ‘Balanced (MySuper)’ from the list. For those considering a self-managed super fund (SMSF) or wrap account, similar asset allocations can be constructed using index ETFs and fixed income products for a DIY approach.

AustralianSuper Balanced (MySuper) offers a well-rounded, cost-effective solution for investors seeking a balanced blend of growth and defensive assets. Its broad diversification, solid historical returns, and moderate risk profile make it a strong candidate for many retirement portfolios. As always, align your super investment choices with your personal risk tolerance, retirement timeline, and financial goals, and consider seeking professional advice if in doubt.