Super funds hit a patch of turbulence in November with the median Growth fund (61% to 80% growth assets) down 0.4% over the month.
Negative market sentiment has continued into December, but with only a week till Christmas Chant West estimates the median Growth fund is on track for a healthy return of 8.5% for the 2025 calendar year.
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.
Mohankumar says the good 2025 result has been driven primarily by international share markets which are up 17% so far this year. International shares account for just over 30% of Growth fund asset allocations on average, and even more for higher risk options.
What’s more, all asset classes have produced positive returns this year. In 2025 to the end of November, Australian shares were up 8.9% but Asian markets and emerging markets were the standout performers, up 34% and 28% respectively. Australian and global listed real estate were both up 7.2% while Australian and global bonds were also up 3.8% and 4.7% (hedged into Australian dollars) respectively.
The table below shows the median performance to the end of November 2025 for the five traditional diversified risk categories.Â
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Super fund performance (results to 30 November 2025)
| Fund category (% growth assets) | 1 mth (%) | 3 mths (%) | FYTD (%) | CYTD (%) | 1 yr (% per yr) | 3 yrs (% per yr) | 5 yrs (% per yr) | 7 yrs (% per yr) | 10 yrs (% per yr) | 15 yrs (% per yr) |
|---|---|---|---|---|---|---|---|---|---|---|
| All Growth (96–100%) | -0.8 | 2.0 | 6.2 | 11.2 | 10.5 | 11.9 | 10.0 | 9.9 | 8.9 | 9.3 |
| High Growth (81–95%) | -0.6 | 1.7 | 5.3 | 9.8 | 9.1 | 10.9 | 9.3 | 9.6 | 9.0 | 9.2 |
| Growth (61–80%) | -0.4 | 1.7 | 4.5 | 8.8 | 8.3 | 9.4 | 7.8 | 7.9 | 7.5 | 7.9 |
| Balanced (41–60%) | -0.3 | 1.5 | 3.6 | 7.4 | 7.4 | 7.6 | 6.2 | 6.4 | 6.1 | 6.7 |
| Conservative (21–40%) | -0.1 | 1.2 | 2.7 | 6.1 | 5.9 | 6.0 | 4.3 | 4.6 | 4.5 | 5.2 |
Source: Chant West. Performance is shown net of investment fees and tax, before administration fees and adviser commissions.
As you can see in the table above, returns for all periods from one to 15 years remain positive. And all risk categories have generally met their typical long-term return objectives, which range from CPI (a measure of inflation) + 1.5% for Conservative funds to CPI + 4.25% for All Growth.
The chart below shows performance of the median Growth fund since the introduction of compulsory super in July 1992. Over that period, the median Growth fund has returned 8% per year. The average annual CPI increase over the same period is 2.7%, giving a real return of 5.3% per year – well above the typical 3.5% long-term target. So, while the median Growth fund has delivered returns of 11% or more per year over the past three years, Mohankumar stresses that that level of return shouldn’t be thought of as normal and urges super fund members to think long term.
Even looking at the past 20 years, which includes three major market downturns – the GFC in 2007–09, COVID in 2020, and the 2022 calendar year marked by high inflation and rising interest rates to combat it – the median Growth fund has returned 7% per year, comfortably ahead of the typical objective.
Growth funds have produced positive returns in 28 of the past 33 financial years. The typical risk objective for Growth funds would be no more than six negative returns during that period (there have been just five), so the risk objective has been met as well as the performance objective.
Source: Chant West
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