For the third year running, super funds surpassed expectations in the 2025 calendar year. Against a backdrop of Trump’s on-again, off-again tariffs and rising geopolitical tensions, the median Growth fund (61-80% growth assets) returned 9.3%.
This followed the strong 11.4% return in 2024 and 9.9% in 2023, meaning super funds have returned more than 30% over the past three years.
Once again, international shares were the main driver of the stellar 2025 result.
Chant West head of superannuation investment research, Mano Mohankumar says the good 2025 result has been driven primarily by international share markets which delivered 18.6% on a currency-hedged basis, despite uncertainty around tariffs and geopolitical tensions.
International shares in unhedged terms were lower, at 12.5%, due to the strengthening Aussie dollar (up from US62c to US67c). Australian shares returned a respectable 10.7%. Mohankumar says Growth funds have 31% of their total investments in international shares on average, and a further 25% in Australian shares.
Remarkably, given the difficult investment environment, all major asset classes produced positive returns in 2025. Traditional defensive assets cash, Australian bonds and international bonds returned 4%, 3.2% and 4.4% respectively. Australian and international listed property were up 9.7% and 7.5% respectively while international listed infrastructure returned 11.6%.
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