UniSuper chief investment officer John Pearce says Australian investors are stuck with the unenviable position of putting money into overvalued banks like Commonwealth Bank or rotating into a resources sector overly dependent on a bounceback in the Chinese economy.

The comments came as he revealed the $137.5 billion superannuation giant had delivered an annual return of 10.3 per cent on its flagship balanced option, and 11 per cent with its growth pool for its 650,000 members in the year to June 30. The result means an extra $17,000 in retirement savings for the average member in the balanced portfolio, and compares to a return of 9.97 per cent on the broader S&P/ASX 200 index in the same time period.