Your super is a really important part of your pay. If you invest it wisely, it could grow to be one of your biggest investments in life.

At Australian Retirement Trust (ART), we're committed to growing your nest egg, so you can live your best life after work. But how do you know if your super's working as hard as you are?

That's where tracking investment performance comes in.

Let's dive into the world of super returns and learn how to keep tabs on how your super’s performing.

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What’s investment performance?

Investment performance (also called investment returns) shows how much money your super makes over time. It’s the profit your super fund earns for you from the investments it makes on your behalf.

But keep in mind that because the market can go up and down, a drop will lead to a negative return.

You can use returns to compare investment performance between different super funds or investment options.

Strong investment performance is important because it helps your super grow more quickly. But don’t focus on returns alone.

When you’re comparing, make sure you're doing a like-for-like comparison. We'll explain how to do this a little later.

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Why long term investment matters

Super is probably the longest investment you’ll ever make.

Investment returns go up and down with the market. Try not to worry too much about short-term market changes. History tells us to stick to your investment strategy and not react to short-term losses if you have time for your investments to recover.

And when you track performance, look at long-term returns (for example, 7 and 10-year returns).

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How to compare investment performance

Comparing super funds

When comparing investment performance, it's important to compare the same type of investment options and same type of investment returns. This means it's a 'like-for-like' comparison.

For example, you could compare the 'high growth', or 'balanced', or 'conservative' options offered by different super funds. The name of the option often provides an indication of the type of option it is.

You can also look further and compare things like return objectives, asset mix, risk and fees.

Comparing performance over the same time period is also important.

For example, if you compare the returns you would have received if you invested 10 years ago, make sure it is the same period you are looking at for each of the options. And that the time period all ends at the same date, like 31 December 2024.

Comparing with a benchmark

Comparing your returns with the returns of a benchmark allows you to see how well your investment option is performing relative to that benchmark.

It can also help you identify the best-performing investment options.

Here are two benchmarks we use:

• Peer benchmarks

  These compare your investment option’s return with similar options from other super funds. For example, you might compare ART’s default option, Lifecycle Investment Strategy with other default products in the SuperRatings survey. We've put together this guide on super fund comparisons.

• Goal-based benchmarks

  Another way to compare investment performance is to use goal-based benchmarks. We use Consumer Price Index (CPI) or inflation goals at ART. We try to beat the CPI, which shows if your investment keeps up with rising prices (also called inflation).