Diversification the name of the super return game | Australian Markets
Diversification has been the key aspect underpinning Australian superannuation fund returns in the face of persevering with geopolitical uncertainty and market volatility, in accordance with Morningstar’s inaugural Super Fund report.
The report overlaying superannuation funds efficiency over the second quarter famous relative performances however, in the finish, concluded the elementary significance of diversification.
However, its break-down of the prime superannuation fund performers by investment option, revealed the dominance of industry funds notably that of AustralianSuper which boasts a sturdy in-house investment group.
“Style performance diverged sharply in Q2 2025, highlighting shifting investor preferences. Growth stocks staged a strong comeback, with the MSCI World Growth index up 11.89% for the quarter, reversing Q1’s sharp losses,” the evaluation stated. “Quality stocks also recovered, gaining 3.83%, while Value lagged with a flat 0.20% return.”
“The rotation back into growth was pushed by renewed optimism in technology and innovation-led sectors, notably in the U.S., as inflation fears eased and earnings remained resilient.
“Style dispersion remains elevated, reinforcing the importance of diversification across factors,” it stated.
Morningstar stated multi-asset portfolios delivered sturdy beneficial properties throughout the second quarter with efficiency bettering throughout all risk profiles.
“After a soft Q1, diversified strategies rebounded sharply, led by Aggressive (+7.13%) and Growth (+6.03%) allocations, reflecting the broad equity market rally and improved sentiment. Balanced portfolios also performed well (+4.77%), while more conservative strategies posted steady gains.”
“The recovery was driven by strong domestic and global equity returns, stable domestic bond yields, though the macro backdrop remains uncertain. The quarter highlighted the benefits of diversification, particularly portfolios with higher equity exposure,” it stated.
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