Important: Superannuation is a long-term investment. Don’t be too concerned about a negative month here or there because on average super funds have been providing positive returns for 28 of the last 33 calendar years.
Super funds built on their strong start to the new financial year with the median Growth fund (61% to 80% growth assets) up 1.2% in October, taking the return for the first four months of the financial year to a remarkable 4.9%.
However, markets have pulled back a little in the first few weeks in November, on fears that US shares, and the tech sector in particular, are overvalued.
Even so, with only six weeks left of the 2025 calendar year, Chant West estimates the median Growth fund is sitting at a solid 7.8%, bang on the long-term, 15-year annual average of 7.9%.
Chant West head of superannuation investment research, Mano Mohankumar reminds super fund members that this year’s result follows two exceptional years, with returns of 9.9% in 2023 and 11.4% in 2024.
Once again, the positive October returns were driven by strong developed international share markets which rose 2.6% hedged and 3.3% unhedged, and even stronger emerging markets, up 5.5%. “Markets were buoyed by easing of trade tensions during the month, strong corporate earnings and optimism around AI (artificial intelligence)”, says Mohankumar.
Australian shares dragged the chain, up just 0.4% in October. Australian and international bonds were positive, gaining 0.4% and 0.7% respectively.
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