Mano Mohankumar

Despite tensions in the Middle East, lingering inflation concerns and periods of market volatility, super funds posted a fourth consecutive year of strong returns, with the median growth fund (61 to 80% in growth assets) gaining 9.5% for FY26. This follows the returns of 9.2% in FY23, 9.1% in FY24 and 10.4% in FY25, taking the cumulative return to an impressive 44% over the past four years. Members invested in higher-risk options would generally have enjoyed even stronger outcomes, reflecting the strength of share markets over this period.

Chant West Head of Super Investment, Mano Mohankumar, says that the FY26 result was once again driven by international shares, but it also helped that nearly all asset classes generated positive returns over the period. “International shares surged 25.5% in hedged terms, supported by continued enthusiasm for AI and robust corporate earnings. Despite the Australian dollar’s appreciation against most major currencies, the return in unhedged terms delivered an impressive 17%. International shares have the highest allocation within a typical growth fund, accounting for about 31% on average. By comparison, Australian shares, which on average has a weighting of 24%, returned a modest 6.2% over the year.

“Generally speaking, the better performing funds were those that had higher allocations to international shares, particularly where a larger proportion of that exposure was currency hedged. Diversification also provided some benefit given the wide dispersion of returns across asset classes, though it would have helped if you had lower allocations to traditional defensive assets. Australian bonds, international bonds and cash returned 1.5%, 2.9% and 3.9%, respectively, making them among the weakest performing asset classes over the year. The only asset class to finish in negative territory was Australian listed property, which declined 1.8%. In contrast, international listed real assets performed exceptionally well, with international listed infrastructure and listed property returning 17.2% and 14.3%, respectively.”

“We’re still collecting final returns for unlisted asset classes such as unlisted property, unlisted infrastructure and private equity. However, we expect infrastructure returns to finish the year in the 7% to 9% range, and estimate that private equity delivered gains of 8% to 11%. Unlisted property continued its recovery and is likely to post returns in the 5% to 7% range.”

Chart 1 shows the top 10 performing growth options over the 2025/26 financial year, together with the survey median. However, long-term performance is far more important for super fund members. The top 10 performers over 10 years to 30 June 2026 are shown in Chart 2.

The table below compares the median performance to 30 June 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. Over the long term, all risk categories have met their typical return objectives, which range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Funds continue to beat risk and return targets

While much of the focus at this time of year is on financial year performance, Mohankumar believes fund members always need to think long term. To provide further context, Chart 3 plots the year-by-year performance of the median growth fund over the 34 financial years since the introduction of compulsory super in July 1992. It shows that super funds have delivered on their risk and return objectives over the long term.

Mohankumar says that while super funds have delivered four straight years of returns of 9% or more, that level of return shouldn’t be thought of as normal. “The typical long-term return objective for growth funds is to beat inflation by 3.5% p.a., which translates to roughly 6% p.a. Since the introduction of compulsory super, the annualised return is 8% and the annual CPI increase is 2.7%, giving a real return of 5.3% p.a. – well above that 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020 and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still comfortably ahead of the typical objective.

“Returns are important but so is risk, and most funds also set themselves a risk objective. Risk is typically expressed as the likelihood of a negative annual return, and typically a growth fund would aim to post no more than one negative return in five years on average. This objective would translate to no more than six negative years over the 34 financial years shown. As it turns out, there have only been five negative years, so the risk objective has been met as well as the performance objective.”

Long-term performance remains above target

Chart 4 below shows that for about 73% of the time since compulsory super, the median growth fund has exceeded its return objective over rolling 10-year periods. This is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

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Mano Mohankuma

Super funds had a tremendous May with the median growth fund (61-to-80% in growth assets) rising by 2.1% over the month. Taking into consideration market movements in June so far and with less than two weeks of the financial year remaining, Chant West estimates that the median growth fund return for FY26 to date is at 9%.

Head of Super Investment Research, Mano Mohankumar, says that the strong FY25 performance to date has largely been powered by international listed shares.

“It also helped that all asset classes have delivered positive returns over the period with the exception of Australian REITs, to which super funds have very little exposure.

“The FY26 experience is another timely reminder of the importance of maintaining a long-term perspective and not getting distracted by short-term market noise. In late March, a return in the vicinity of 9% for growth funds would have appeared unlikely following the significant share market pullback, sparked by the US-Iran conflict and concerns around interest rates amid rising inflation.

“However, since then we’ve seen international share markets rebound strongly, albeit with some volatility, supported by robust corporate earnings, optimism around easing tensions in the Middle East and continued enthusiasm for AI investment.

“A final return close to 9% would mark four consecutive years of strong performance, following returns of 9.2% in FY23, 9.1% in FY24 and 10.4% in FY25. It would also represent the 15th positive year out of the last 17. Most importantly, super funds continue to meet their long-term return and risk objectives,” he said.

For further context, Chart 1 plots the year-by-year performance of the median growth fund over the previous 33 full financial years since the introduction of compulsory super in July 1992, as well as the 2026 financial year-to-date return.

Since the introduction of compulsory super, the median growth fund has returned 8% p.a. The annual CPI increase over the same period was 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.8% p.a., which is still comfortably ahead of the typical objective.

“On the risk side, there have only been five negative years over the entire period, which translates to close to one year in every seven. Again, funds have done better than their typical long-term risk objective which is one negative return in every five years, on average,” said Mohankumar.

The table below compares the median performance to the end of May 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. It doesn’t include any estimated performance for June to date. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Chart 2 below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

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Aware Super scooped four wins in total, including the award for Best Fund: Member Services, and Best Fund: Insurance.

The Chant West Super Fund Awards celebrate excellence across 14 categories, showcasing industry best practice to help lift standards across the industry, celebrating the achievements of funds for their work in the important areas of investments, member services, advice and insurance. The awards also play an important role in encouraging ongoing improvement across the sector, with the ultimate goal of delivering better outcomes for members.

The other category winners were:

• Corporate Solutions Fund of the Year – Australian Retirement Trust
• Advised Product of the Year – AMP MyNorth
• Best Fund: Investments – Hostplus
• Best Fund: Advice Services – Brighter Super
• Best Fund: Lifetime Product – AMP MyNorth Lifetime, for the third year in a row
• Best Fund: Innovation – HUB24
• Best Fund: Responsible Investments – UniSuper
• Best Fund: MySuper Performance Outcomes – Hostplus
• Best Fund: Digital Advice – AMP Super
• Specialist Fund of the Year – Team Super

Chant West general manager Ian Fryer says after many years of having a bespoke theme for each year’s awards – which put the spotlight on a key priority or challenge within the industry – Chant West decided not to have a specific theme this year.

“We believe this decision allows each of the 14 categories to have their respective moment in the spotlight, and rightly focus on the individual criteria that underpins each award, without elevating one above another,” Fryer says.

“Highlighting excellence in all 14 categories is important if Australia’s super system is to continue to thrive.”

Fryer says Australia’s retirement saving system is regarded as one of the best in the world.

“The Chant West awards highlight the innovation and excellence at play in the sector, which will help ensure it continues to remain focused on delivering better retirement outcomes for all members.”

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Mano Mohankumar

Super funds delivered a strong April, with the median growth fund (61–80% growth assets) up 2.6%, buoyed by a sharp rebound in global share markets. The result recouped a significant portion of March’s 3.2% loss. With international markets also up in May so far, Chant West estimates that with just six weeks remaining in FY26, the median growth fund return is sitting at 6.4%. This follows three consecutive years of very strong performance – 9.2% in FY23, 9.1% in FY24 and 10.4% in FY25.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says that the April share market rally was driven by a ceasefire in the Middle East, albeit a tenuous one, and solid corporate earnings in the US. “Over the month, developed market international shares returned a lofty 9% in hedged terms, led by the technology and communications services sectors amid ongoing investor enthusiasm for AI. With the Australian dollar appreciating against most major currencies, the return in unhedged terms was more modest, but still healthy at 4.4%.

“Emerging markets shares performed even better, gaining 9.3% in unhedged terms. While not reaching the same heights, Australian shares still generated a solid gain of 2.3%. With the risk-on sentiment, returns from bonds were flat with Australian and international bonds up 0.1% and 0.3%, respectively.”

“The experience over the past two months is a timely reminder that super is a long-term game. Members who panicked in March and switched to cash or a lower risk diversified option, not only turned paper losses into real ones, but also missed out on the subsequent market rebound. Missing even short periods of strong returns can have a significant impact on retirement outcomes due to the power of compounding.”

The table below compares the median performance to the end of April 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Long-term performance remains above target

MySuper products have been operating for over 12 years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition.

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.6% p.a., which is still ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

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Mano Mohankumar

Sparked by the US-Iran conflict and renewed concerns around interest rates amid rising inflation, super funds experienced a significant pullback in March, with the median growth fund (61–80% growth assets) down 3.2% for the month. However, share markets have since rallied strongly and Chant West estimates that the median growth fund is up 3.1% so far in April. That almost entirely offsets the March decline and brings the estimated median return over FY26 up to 6%, with about 10 weeks of the financial year remaining.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says that the April rally has been on the back of optimism around a potential de-escalation in Middle East tensions, easing oil prices and solid corporate earnings.

“The experience since the start of March is another clear reminder of why it’s important for super fund members to stay patient and maintain a long‑term perspective. Members who panicked after seeing their balances fall in March and switched to lower‑risk options or cash not only crystallised paper losses, but also missed out on the subsequent V‑shaped rebound. Over time, missing out on returns like these can make a significant difference to a member’s balance at retirement due to the power of compounding.

“That’s why we remind members that super is a long-term investment and encourage them to see a financial adviser if they’re thinking of switching options. An adviser can help assess their broader financial position, including assets held outside of super, and ensure their investment strategy remains appropriate.”

The table below compares the median performance to the end of March 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. It doesn’t include any estimated performance for March to date. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Long-term performance remains above target

MySuper products have been operating for over 12 years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition.

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 7.9% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.2% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.5% p.a., which is still ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

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Mano Mohankumar and Ian Fryer

Super funds delivered a positive return in February, with the median growth fund (61–80% growth assets) gaining 1.1% for the month. However, markets have since come under pressure. Escalation of the conflict in the Middle East in early March pushed oil prices higher and renewed interest rate concerns amid rising inflation. Share markets have fallen in response, and Chant West estimates the median growth fund is down 3.8% so far in March. This brings the financial-year-to-date return back to about 2.5%.

Chant West head of superannuation investment research, Mano Mohankumar, says that during periods of volatility, it’s important that super fund members see short-term movements in context.

“It’s critical for members to keep in mind that super is a long-term investment and there will inevitably be periods of market weakness through their super journey. While we recognise that members have different levels of comfort when their balance goes backwards, the majority can afford to remain patient, including many older members. A lot of Australians don’t take out all of their super as a lump sum at retirement, meaning a substantial amount is likely to remain within the super system in the pension phase, often for many years. In reality, their investment horizon is longer than they might think. 

“Additionally, when markets fall sharply, some people consider moving to lower-risk options or cash, with a view to moving back later, generally out of fear or as an attempt to time the market. Far more often than not, that approach results in poorer long-term outcomes than if they stay the course. Not only do they crystalise their losses, but also risk missing part or all of the subsequent market rebound. We would encourage those members who are thinking of switching options to see a financial adviser.

“It’s also important to remember that super funds delivered strong results in each of the previous three financial years – 9.2% in FY23, 9.1% in FY24 and 10.4% in FY25%. Returns at those levels shouldn’t be expected every year, but importantly, super funds continue to deliver on their longer-term return and risk objectives.”

The table below compares the median performance to the end of February 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. It doesn’t include any estimated performance for March to date. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Long-term performance remains above target

MySuper products have been operating for just over 12 years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition. 

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.8% p.a., which is still well ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

By Mano Mohankumar, Head of Superannuation Investment Research and Ian Fryer, General Manager.

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Ian Fryer

Cyber security and the ability of a super fund to deliver reliable lifetime income for those in decumulation phase are emerging as the two key tests of whether funds are fit for purpose for Australians planning their retirement, says Ian Fryer, general manager with Chant West.

He says cyber risk is no longer just an IT or compliance issue but a core component of retirement service delivery.

“As the balances of Australian super accounts are growing, they are increasingly becoming attractive targets for cyber criminals. Fraud risks can arise during pension commencement, rollovers, withdrawals or account changes, meaning funds must demonstrate strong cyber protection for their members.”

It is for this reason that cyber security has been added to the Epic Retirement Tick criteria, Australia’s first consumer-facing benchmark assessing a super fund’s retirement-readiness for its retiree and pre-retiree members.

“To achieve the Tick, super funds need to demonstrate that they are cyber secure, and that they receive external certification of cyber security measures, at least every two years,” Fryer says.

“They need to demonstrate secure online ID for digital identity verification. They also need to meet multifactor identification requirements to login and also for a range of other high risk activities, such as ad hoc withdrawals, changing payment details, and also if there’s a change to the power of attorney.

“The focus on cyber is a growing risk, and once you’re drawing down your money, you are absolutely a target.”

Fryer says the other important issue for retirees that super funds are grappling with is the development of lifetime income products for those entering the draw-down/retirement phase.

“We need to see super funds not just offering products designed to deliver income for life (including annuities, pooled longevity solutions or hybrid retirement income structures), but also educating members about the solution and explaining when they are appropriate,” Fryer says.

“The industry is still in the early stages of developing scalable lifetime income solutions, and there is more work to be done. Many funds are grappling with product complexity, regulatory settings and low member awareness of longevity protection products.

“Currently, it’s very hard for a consumer to compare one product against another. Yes, you can look at performance, you can look at fees, but how do you compare the services they provide? When you get to retirement, those services are just as important, maybe even more important, than fund performance.

“It’s not good enough for a super fund to just to have a product. It is also important to have the education, guidance and advice about these products. If professional financial advice is needed, we don’t want it to cost members $5000. We want it to cost $1500.

“What we are looking for is education or advice that helps members specifically on whether to and then how to use a lifetime product.”

Fryer says those approaching retirement are still hesitant to adopt lifetime products because the decisions can be difficult to reverse and require a level of guidance or advice many members do not currently receive.

“With more Australians entering retirement with larger super balances than previous generations, the pressure on funds is to deliver both secure systems and sustainable income.”

Chant West and the Epic Retirement Institute launched the Epic Retirement Tick assessment for super funds in 2025. It is a retirement-readiness framework, developed in a partnership with Chant West and the Epic Retirement Institute, that offers a consumer-focussed assessment against 20 key criteria. They are measures of a fund’s retirement readiness including investment options tailored to the pension phase, retirement income products, drawdown guidance, advice pathways, calculators and modelling tools, education and engagement strategies, and service delivery measures such as pension payment timeliness and call centre performance.

It establishes a benchmark for best practice for super funds’ retirement offering.  Funds must satisfy at least 14 out of the 20 criteria, with successful funds earning the ‘Epic Retirement Tick – powered by Chant West’.

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Mano Mohankumar

Another strong calendar year result for super fund members

Super funds posted another strong result for the 2025 calendar year, with the median growth fund (61–80 per cent in growth assets) returning 9.3 per cent. This follows impressive gains of 9.9 per cent in 2023 and 11.4 per cent in 2024, translating to nearly 35 per cent growth over the past three years. Super fund members invested in higher-risk portfolios enjoyed even stronger outcomes.

Chant West senior investment research manager, Mano Mohankumar, says international share markets were the key driver of 2025’s strong performance, delivering 18.6 per cent on a currency-hedged basis, despite uncertainty around tariffs and geopolitical tensions.

“International shares in unhedged terms was lower, with a 12.5 per cent return due to the appreciation of the Australian dollar over the year (up from US$0.62 to US$0.67). On average, growth funds have 31 per cent in total invested in international shares and 25 per cent allocated to Australian shares, with Australian shares also contributing meaningfully, returning 10.7 per cent. It also helped that all major asset classes generated positive returns over the period.

“We’re still in the process of collecting final returns for unlisted asset classes such as unlisted property, unlisted infrastructure and private equity, all of which were in positive territory. We estimate that unlisted infrastructure finished with gains in the 7 per cent to 10 per cent range, with private equity likely to finish with a low double-digit return. Unlisted property, which was in the red in each of the two previous years, is expected to finish with a positive return in the 3 per cent to 6 per cent range. Listed real assets were also up, with Australian listed property returning 9.7 per cent, while international listed property and international listed infrastructure yielded gains of 7.5 per cent and 11.6 per cent, respectively. Within the traditional defensive asset classes, cash, Australian bonds and international bonds returned 4 per cent, 3.2 per cent and 4.4 per cent, respectively.

“With share markets performing so well in 2025, particularly international shares, naturally the better performing super funds generally had higher allocations to those asset classes. Funds that had lower allocations to unlisted property, cash and bonds would have also benefitted, as did those with lower exposure to the US dollar,” said Mohankumar.

Chart 1 shows the top 10 performing growth options over the 2025 calendar year, together with the survey median, noting that long-term performance is more important for super fund members.

Table 1 compares the median performance for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. Over the long term, all risk categories have met their typical return objectives, which range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Chart 2 shows the top 10 performing growth options over 10 years, together with the survey median.

Funds continue to beat risk and return targets

While much of the focus at this time of year is on calendar year performance, Mohankumar believes fund members always need to think long term. To provide further context, Chart 3 plots the year-by-year performance of the median growth fund over the full 33 calendar years since the introduction of compulsory super in July 1992. It shows that super funds have delivered on their risk and return objectives over the long term.

Mohankumar says that while super funds had a strong 2025 with a median return of 9.3 per cent, that level of return shouldn’t be thought of as normal.

“The typical long-term return objective for growth funds is to beat inflation by 3.5 per cent a year, which translates to just over 6 per cent a year. Since the introduction of compulsory super, the annualised return is 8 per cent and the annual CPI increase is 2.7 per cent, giving a real return of 5.3 per cent a year – well above that 3.5 per cent target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020 and the high inflation and rising interest rates in 2022 – super funds have returned 6.9 per cent a year, which is still comfortably ahead of the typical objective.

“Returns are important but so is risk, and most funds also set themselves a risk objective. Risk is normally expressed as the likelihood of a negative annual return, and typically a growth fund would aim to post no more than one negative return in five years on average. This objective would translate to no more than six negative years over the 33 calendar years shown. As it turns out, there have only been five, so the risk objective has been met as well as the performance objective.”

Chart 4 shows that for most of the time since compulsory super, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

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Mano Mohankumar

A healthy result on the horizon for CY25 despite the noise

Super funds advanced for the seventh consecutive month in October with the median growth fund (61 to 80% in growth assets) returning 1.2% over the month. While we’ve seen some share market jitters in November so far, Chant West estimates that with only 6 weeks of CY25 remaining, the median growth fund return is still sitting at a solid 7.8%.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says that a final result near 7.8% would be a good outcome, particularly given the uncertain economic and geopolitical backdrop throughout the year. “That return is well ahead of the typical long-term return objective which translates to about 6%. Super fund members should also remember that this year’s result follows two exceptional years, with returns of 9.9% in CY23 and 11.4% in CY24. Given the strength of share markets over the past three years, super fund members in higher risk portfolios have fared even better.

“The healthy October return was driven by strong developed international share markets which rose 2.6% and 3.3% in hedged and unhedged terms, respectively. Markets were buoyed by easing of trade tensions during the month, strong corporate earnings and optimism around AI. Emerging markets shares performed even better, returning an impressive 5.5%. Back at home, Australian shares yielded a small positive return of 0.4%. Over the same period, Australian and international bonds gained 0.4% and 0.7%, respectively.”

The table below compares the median performance to the end of October 2025 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

Long-term performance remains above target

MySuper products have been operating for nearly 12 years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition.

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 7.1% p.a., which is still comfortably ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

By Mano Mohankumar, Senior Investment Research Manager

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Mano Mohankumar

Super funds were up for the sixth straight month in September with the median growth fund (61% to 80% in growth assets) returning 0.8% over the month. With share markets up in October so far, and despite some volatility creeping back into markets earlier this month, Chant West estimates that with less than 2½ months of CY25 left, the median growth fund return is sitting at a healthy 9%. Naturally, higher growth risk categories have fared even better.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says that international shares were the main driver of the September result. “Developed international shares returned 3.3% and 2% in hedged and unhedged terms, respectively, with that strong performance led by the US and tech sector which benefitted from renewed enthusiasm around AI. The resumption of interest rates cuts by the Federal Reserve during the month and solid corporate earnings also buoyed share markets. Emerging markets shares outperformed developed markets, surging 5.8% on an unhedged basis over the month, representing their strongest return in more than two years.

“Australian shares underperformed with a small loss of 0.6%, as expectations for interest rate cuts were scaled back in response to firmer economic data and moderately stickier inflation. Over the same period, Australian and international bonds gained 0.1% and 0.7%, respectively.”

The table below compares the median performance to the end of September 2025 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

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