Super strength weathers market storm over 2024-25 | Australian Markets

Superannuation has managed to show its investment energy over the long-term, in keeping with the latest Super Ratings outcomes for the 12 months to 30 June.

The knowledge analysed throughout a number of choices confirmed worldwide technology and Australian financial shares lead the pack for the final financial 12 months, softening the blow of persistent market turbulence and permitting Australians to “find comfort in their retirement balances”.

Balanced funds with a growth allocation of 60 to 70 per cent of their portfolio are anticipated to generate returns in constructive territory for members and more than half are anticipated to hit the double digits.

According to Super Ratings’ SR50 Balanced (60-76) Index for the 12 months ending June 2025, the highest 10 funds had been:

1. Raiz Super Moderately Aggressive – 13.8 per cent
2. legalsuper – MySuper Balanced – 12.6 per cent
3. Hostplus – Index Balanced – 12.0 per cent
4. Colonial First State First Choice Wholesale Personal – Enhanced Index Balanced – 12.0 per cent
5. Vanguard Super SaveSmart – Growth – 11.8 per cent
6. Living Super – Growth – 11.7 per cent
7. Superhero Super – Growth – 11.7 per cent
8. ESSSuper – Balanced Growth – 11.3 per cent
9. Australian Retirement Trust – Super Savings – Balanced – 11.2 per cent
10. NGS Super – Diversified (MySuper) – 11.2 per cent.

“It’s pleasing to see a range of funds in this year’s top performers with some smaller funds showing their ability to deliver strong returns to their members through uncertain times” Kirby Rappell, Director of SuperRatings, stated.

Similar outcomes pushed by the efficiency of the Magnificent Seven within the US and the Commonwealth Bank of Australia had been additionally recorded by passive investment choices within the Balanced section:

1. Raiz Super – Moderately Aggressive – 13.8 per cent
2. netwealth Super Accelerator – BlackRock GSS Index Plus Growth Fund – 13.7 per cent
3. Aware Super Future Saver – Balanced Indexed – 12.7 per cent
4. Colonial First State First Choice Employer – Enhanced Index Balanced – 12.3 per cent
5. Brighter Super – Indexed Balanced – 12.2 per cent
6. AMP SignatureSuper – Balanced Index – 12.0 per cent
7. Hostplus – Indexed Balanced – 12.0 per cent
8. HESTA – Indexed Balanced Growth – 12.0 per cent
9. AustralianSuper – Indexed Diversified – 12.0 per cent
10. Australian Retirement Trust – Super Savings – Balanced Index – 11.8 per cent

For youthful members aged 45, the default MySuper Lifecycle choices held a bigger allocation to growth and thus generated stronger returns.

“While higher exposure to growth assets has benefited members over the past few years, it also comes with increased ups and downs, and we encourage members to learn how their fund’s investment strategy works so they are comfortable with annual and long-term performance outcomes,” Rappell stated.

Vanguard, Colonial First State, Essential Super, Virgin Money and AMP all reached the highest 5.

Sustainable choices additionally managed to match their balanced counterparts within the final financial 12 months, with Vanguard Super’s Ethically Conscious Growth option delivering the strongest returns at 12.6 per cent, adopted by Aware Super Future Saver – Balanced Socially Conscious (12.3 per cent), UniSuper – Sustainable Balanced (11.1 per cent), Raiz Super – Emerald (SRI) (11.1 per cent), and HESTA – Sustainable Growth (11.1 per cent).

“With so many global events over the year there has been an increased level of uncertainty around fund returns this year,” Rappell stated.

“However, superannuation is designed to construct and keep wealth for retirement and since most of us can have a lot of time till we retire and start accessing our superannuation it’s important to dam out as a lot of the noise as attainable and give attention to how we’re doing over the long time period.

“This year has been a strong result, well above the long-term annual return of 7.2% since compulsory superannuation began in 1992. Converted into dollars, $1 invested in the median balanced super fund in 1992 would now be worth approximately $2.84.”

Rappell warned traders to examine their super investment choices and guarantee their most well-liked choice stays appropriate for his or her life stage; an option that may climate the ‘ups and downs’ is healthier suited to these additional away from retiring, in comparison with one that ought to minimise publicity to market fluctuations for these approaching or close to retirement.

“Protecting members’ balances from sharp falls is a key function of superannuation investment teams and grows in importance as members near retirement or uncertainty rises,” stated Mr Rappell. “While some funds that were more defensively positioned didn’t benefit as much from growth over the year, having strong diversification helps shelter members from market fluctuations and supports smoother returns over the long term”.