The latest data from Chant West reveals that Australian superannuation funds have delivered impressive returns for the 2025 financial year. Despite a turbulent second half of the year, where global uncertainties such as trade tensions and geopolitical conflicts impacted markets, growth funds managed to generate double-digit returns. The release of the top-performing funds provides a clear picture of how investors can expect their superannuation to perform in the long run.
With the median growth fund returning 10.5%, and some funds even surpassing that, it’s clear that superannuation has remained a resilient source of retirement savings for Australians. This article breaks down the standout performers and what contributed to their strong results.
Legal Super Takes the Lead
Among the standout funds, Legal Super delivered the highest returns, with a remarkable 12.9% growth. This fund outperformed others in the growth category, which typically includes funds with a portfolio of 61 to 80% growth assets, such as shares. Legal Super’s success can be attributed to its strong asset management strategy and the favorable market conditions that fueled its performance.
Following closely behind Legal Super were Vanguard, with a return of 11.8%, and Colonial First State, which achieved 11.2% growth. These funds are examples of how well-managed growth funds have navigated global volatility and capitalized on the positive returns of international and Australian shares.
Growth Funds Remain Robust Despite Volatility
Despite facing numerous challenges in the global market, including geopolitical tensions and trade disputes, growth super funds posted robust returns. The resilience of the funds can largely be attributed to the performance of share markets, which were notably strong over the year. International shares and Australian shares both returned 13.7%, reflecting the strength of the global market.
Chant West’s Mano Mohankumar, senior investment research manager, attributed the positive results to resilient share markets, as well as the favorable performance of foreign currency. He noted that the depreciation of the Australian dollar played a crucial role in boosting returns from international shares. In unhedged terms, international share returns were up to 18.6%.
Top 10 superannuation funds revealed as Aussies receive 'double-digit' returns https://t.co/EFBT1Gh93k
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Broader Asset Classes Contribute to Success
Chant West also highlighted that other asset classes contributed to the overall strong results. For example, Australian and international bonds had their best year since 2019, returning 6.8% and 5.4% respectively. Cash returns also saw a positive 4.4%. Unlisted property investments were expected to finish the year with a return in the 2-5% range, further bolstering the performance of growth funds.
These diverse sources of returns demonstrate the importance of maintaining a balanced portfolio within superannuation funds. While shares have historically driven growth, other asset classes such as bonds and property have shown their worth in the face of market volatility.
The Impact of Global Events on Superannuation Funds
Despite the positive overall performance, the second half of the year proved to be challenging for many superannuation funds. The volatility driven by global events, particularly the ongoing trade tensions and conflicts in the Middle East, introduced uncertainty in the markets. However, according to SuperRatings director Kirby Rappell, these challenges only highlight the importance of long-term investment strategies.
“Superannuation is designed to build and maintain wealth for retirement, and since most Australians will have plenty of time until they retire, it’s important to focus on long-term goals,” Rappell said. His comments underscore the idea that despite short-term fluctuations, the purpose of superannuation is to provide stability and growth for future retirement needs.
A Positive Outlook for Superannuation Funds
Looking ahead, superannuation funds continue to provide a solid foundation for retirement savings, especially with the strong results posted this year. With a median growth return of 10.5%, Australian funds are showing their resilience in the face of economic uncertainty. Funds like Legal Super, Vanguard, and Colonial First State stand as examples of successful investment strategies that have delivered significant returns despite global volatility.
As Australians continue to rely on superannuation to secure their retirement futures, it’s essential to stay informed about the performance of these funds. Understanding the factors that contribute to strong returns, such as global market conditions and asset diversification, can help individuals make informed decisions about their superannuation investments.
