The median Australian superannuation fund delivered double-digit returns in the 2025 financial year.
Newly released data from Chant West shows the median Australian growth superannuation fund returned 10.5% in FY25.
This total return includes capital growth and dividends.
Despite the US tariff-induced market upheaval and the Ukraine and Middle East conflicts, the median super fund outdid itself in FY25.
Last year's return was higher than in FY24 (9.1%) and FY23 (9.2%).
Chant West defines a median growth super fund as one with 61% to 80% allocation to growth assets like international and ASX shares.
The data also reveals how other types of superannuation funds, such as balanced and conservative, performed over the 12 months.
Let's dig into the details.
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Shares drive 'tremendous' superannuation returns in FY25
Chant West senior investment research manager Mano Mohankumar said FY25 superannuation fund returns were "tremendous".
Mohankumar said resilient share markets were the primary driving force behind the impressive returns.
The S&P/ASX 200 Index (ASX: XJO) rose by 9.97% in value and produced total returns of 13.81% in FY25.
The S&P 500 Index (SP: INX) rose by 13.63% and delivered total returns of 15.16%.
The Dow Jones Industrial Average (DJX: .DJI) lifted 12.72%, with total returns of 14.72%.
While shares outperformed, Mohankumar noted that all major asset classes generated positive returns in FY25.
He said:
International shares and Australian shares, which have average weightings of about 31% and 24% respectively within a typical growth portfolio, both returned 13.7%.
Foreign currency was also a meaningful contributor due to the depreciation of the Australian dollar, with the international shares return of 13.7% (reflected in hedged terms) translating to 18.6% in unhedged terms.
What about other assets?
Mohankumar said infrastructure, which now makes up almost 10% of a typical growth superannuation fund, also performed strongly and delivered low double-digit returns in FY25.
The data also shows good gains for the traditional defensive asset classes, too.
Australian bonds and international bonds had their best year since FY19, rising 6.8% and 5.4%, respectively.
Cash posted a return of 4.4%.
Chant West is still collecting final FY25 data for unlisted assets such as unlisted property, unlisted infrastructure, and private equity.
But Chant West expects solid gains.
Mohankumar said:
We estimate that private equity finished with gains in the 8% to 11% range and expect unlisted property, which was in the red in each of the two previous years, to finish with a positive return in the 2% to 5% range.
Listed real assets were also up over the year, with international listed infrastructure returning an impressive 16.3%, while Australian listed property and international listed property posted gains of 13.7% and 8.4%, respectively.
How did your superannuation fund do?
The Chant West data documents how each type of superannuation fund performed in FY25.
Think of these as industry benchmarks, and use them to compare how your superannuation fund performed in FY25.
Did your fund meet or exceed these benchmarks?
According to the data, 'all growth funds', which allocate 96% to 100% of superannuation monies to growth assets, returned 13.5% in FY25.
'High growth funds', with 81% to 95% invested in growth assets, returned 11.7% last financial year.
Balanced superannuation funds, which have 41% to 60% in growth assets and the rest in defensives, returned 8.8%.
Conservative funds, which have a 21% to 40% allocation to growth assets, delivered investors returns of 7.3%.
All types of Australian superannuation funds exceeded their long-term annual return objectives in FY25.
Target returns range from inflation (CPI) plus 1.5% for conservative funds through to CPI plus 4.25% for 'all growth' funds.
Lesson of FY25
Mohankumar said the FY25 experience "highlighted the resilience of share markets and importance of maintaining a long-term focus".
The market experienced a meltdown in early April after US reciprocal tariffs were announced, causing global stocks to plunge.
Mohankumar said:
Riding out the storm during periods of shorter-term volatility, far more often than not, is the best course of action.
The median growth superannuation fund has delivered almost 30% returns over the past three years.
How much super savings should you have for your age now?
Earlier this month, we revealed that 33% of Australians don't know their superannuation balance.
One in nine has never checked it.
Here's how much superannuation savings you should have for your age right now.
