Superannuation Funds Show Strong Returns Despite Market Volatility
Australian superannuation funds have recorded impressive results for the financial year ending in 2025, with many funds posting double-digit returns despite challenges during the latter half of the year. According to Chant West research, the median growth fund achieved a commendable return of 10.5%.
Top-Performing Funds
The standout performer, Legal Super, delivered a remarkable 12.9% return, claiming the top position among growth super funds, which are defined as holding 61 to 80% in growth assets. Vanguard followed closely with an 11.8% return, while Colonial First State and Australian Retirement Trust both achieved an 11.2% return, tying for third position.
The results highlight a significant recovery from the previous years, where the median returns were 9.1% in 2024 and 9.2% in 2023.
Mano Mohankumar, senior investment research manager at Chant West, attributed these robust results to resilient equity markets and positive returns across all major asset classes, even amid trade tensions and geopolitical conflicts in the Middle East. He noted that international and Australian shares both yielded an impressive 13.7%, with unhedged international returns rising to 18.6% due to the Australian dollar’s depreciation against foreign currencies.
Market Overview
Unlisted property assets are also projected to yield positive returns between 2% and 5%. In the bond market, Australian bonds achieved a return of 6.8%, with international bonds providing a solid 5.4% return, marking their best performance since 2019. Additionally, cash investments garnered a return of 4.4%.
While the first half of the year provided some much-needed stability, the second half was marked by significant volatility. Kirby Rappell, director at SuperRatings, mentioned the increased uncertainty surrounding fund returns, prompted by various global events impacting financial markets. Nonetheless, Rappell urged superannuation members to maintain a long-term perspective, as these funds are primarily designed for wealth accumulation from now until retirement.
Performance Metrics
Here’s a summary of the top 10 performing growth funds for 2025, as outlined by Chant West:
- Legal Super MySuper Balance – 12.9%
- Vanguard Super SaveSmart Growth – 11.8%
- CFS FirstChoice Growth – 11.2%
- Australian Retirement Trust Balanced – 11.2%
- NGS Super Diversified (MySuper) – 11.2%
- smartMonday Balanced Growth – 11.1%
- AMP Future Directions Balanced – 11%
- UniSuper Growth – 11%
- Award Super Balanced – 10.9%
- Brighter Super MySuper – 10.9%
For insight into longer-term performance, the following are the top 10 growth funds over the past ten years (to June 30, 2025):
- Hostplus Balanced – 8.3%
- Australian Retirement Trust Balanced – 8.2%
- AustralianSuper Balanced – 8%
- UniSuper Balanced – 7.9%
- Cbus Growth (MySuper) – 7.7%
- Vision Super Balanced Growth – 7.7%
- HESTA Balanced Growth – 7.6%
- Legal Super MySuper Balanced – 7.6%
- Aware Super Balanced – 7.6%
- CareSuper Balanced – 7.4%
Conclusion
The financial year for Australian superannuation funds has been marked by resilience in the face of global uncertainties, with stability in many funds’ returns. Long-term investors are encouraged to focus on growth potential, allowing their superannuation to work effectively towards their retirement goals.
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