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Superannuation Funds Achieve Impressive Returns in the 2025 Financial Year
Australian superannuation funds have reported remarkable performance for the financial year ending June 30, 2025, despite facing challenges in the latter half of the year. According to data from Chant West, the median growth fund achieved a commendable return of 10.5%, a significant improvement compared to 9.1% in 2024 and 9.2% in 2023.
Leading the pack was Legal Super, showcasing the highest return at 12.9%. Following closely was Vanguard with 11.8%, while Colonial First State, Australian Retirement Trust, and NGS all reported returns of 11.2%. These growth funds typically comprise 61% to 80% growth assets, with many default MySuper options falling into this category.
Chant West’s senior investment research manager, Mano Mohankumar, attributed these strong results to resilient share markets and positive performance across major asset classes, despite geopolitical uncertainties and trade tensions. Both international and Australian shares recorded returns of 13.7%, and a weakening Australian dollar significantly boosted the unhedged returns, translating the international shares’ performance to 18.6%.
Unlisted property is projected to conclude the year with returns between 2% to 5%, with Australian bonds achieving a remarkable 6.8% return and international bonds at 5.4%. Cash offerings returned 4.4%.
The year started with stability, but the latter half was marked by volatility as global events caused market fluctuations. SuperRatings director Kirby Rappell noted the increasing uncertainty surrounding fund returns throughout the year but urged members to focus on long-term growth, as superannuation is designed to build wealth for retirement.
Top Performing Growth Funds
Here are the top 10 growth funds based on the recent findings:
- 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%
Long-Term Performance
Examining the long-term returns over the past decade (to June 30, 2025), the following growth funds stood out:
- 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%
In conclusion, the Australian superannuation landscape has displayed resilience and potential growth despite global uncertainties. While short-term volatility is inevitable, focusing on long-term strategies remains essential for building a prosperous retirement.
