Kirby Rappell

Superannuation funds have continued to deliver strong returns to members over the 2026 financial year, navigating significant global volatility to finish the year on a high note.

SuperRatings expects that all Balanced options, defined as those with exposure to between 60% and 76% growth assets such as shares, will have delivered positive returns to their members over the year to 30 June 2026; however, the dramatic shifts in returns throughout the year in response to geopolitical events mean 2026 returns will be a bit lower than 2025. The median Balanced option will deliver 9.4% for the year to 30 June 2026 compared to 10.3% over 2025 with a handful of top funds likely to record double-digit returns.

International shares, particularly US markets, remained the primary driver of returns over the 12 months to 30 June 2026. Semiconductors, computer storage and other hardware manufacturers supplying the artificial intelligence boom helped drive performance, outpacing the ‘Magnificent Seven’ companies such as Apple and Amazon which have dominated returns in recent years. These gains, however, were tempered by ongoing uncertainty around US tariff settings and the outbreak of new hostilities in the Middle East. At home, Australia has seen elevated inflation, with consecutive RBA rate hikes causing headwinds to Australian markets. Shares in commodities and mining companies were the leading performers, while banks and financials had more mixed results.

For the second consecutive year, Raiz Super’s Moderately Aggressive option took out the top spot in the SR Balanced (60-76) Index for the year ending June 2026 with a return of 13.4%, while NGS Super’s Diversified (MySuper) option was ranked second with a return of 11.5%. Hostplus’ Indexed Balanced option was ranked third with a return of 11.1%, while the fund’s Balanced option was close behind ranking fourth with a return of 10.8%. Meanwhile, the top five funds were rounded out by UniSuper’s Balanced option and Colonial First State Wholesale Personal’s Enhanced Index Balanced, both delivering 10.4%.

“While we have seen a reduction in the number of funds in recent years, we are seeing fierce competition on the returns front. It is encouraging to see that smaller funds have proven they can still deliver members returns that are on par with, and in some cases exceeding, those of their larger competitors,” said Kirby Rappell, Director of SuperRatings.

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. Based on options included in the SR Balanced (60-76) Index.
Passive investment strategies benefited significantly from their allocations to international shares with the S&P 500 delivering a return of over 20% during the 2026 financial year, resulting in the median passive Balanced (60-76) investment option delivering a return of 9.8% for the year and 7.3% per annum (p.a.) over the past five years.

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. Based on options in the SR Passive survey with SAA of 60-76% growth assets.
Raiz Super’s Moderately Aggressive option was the top performing passive option, returning 13.4% followed by Hostplus’ Indexed Balanced option with a return of 11.1% over the 12 months to 30 June 2026. AMP Signature Super took out third place with its Balanced Index option delivering 10.8%.

Over 40% of MySuper default products now use lifecycle investment strategies, which allocate a greater proportion of members’ savings to growth assets when they are younger and progressively reduce risk as retirement approaches by increasing exposure to defensive assets such as cash and fixed interest. This approach fared well as equities rose, with a median return of 10.8% over the year for a member aged 45 invested in a lifecycle option.

Colonial First State First Choice and Essential Super delivered the top default lifecycle return for members aged 45 or under of 13.6% for the year, followed by Vanguard Super which delivered 12.3%.

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. Based on MySuper Lifecycle options for a member aged 45.
While increased exposure to growth assets has rewarded members in recent years with outsized returns, members should be aware that this increased exposure also brings with it the potential for increased volatility over the short and medium-term. These lifecycle investment strategies can also vary significantly between funds in terms of how much growth asset exposure they provide across a member’s lifetime, at what age they start derisking and how much they derisk by the time a member reaches retirement.

“We encourage members to do their own research on their fund’s investment options and ensure that their current option aligns with their financial objectives. Members should be comfortable with the expected annual and long-term investment performance outcomes including the risk of negative return years” commented Mr Rappell.

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. Based on SR Sustainable Balanced Survey for options with SAA of 60-76% growth assets tracked by SuperRatings.
For members invested in options with a focus on sustainability 2026 returns sat markedly below the broader Balanced universe, although remained positive, with the median sustainable balanced option returning 6.4%. Active Super Saver’s Balanced option was the top performer over the year with a return of 9.6%.

“While threats of tariffs and the outbreak of conflict between the US and Iran created turbulence around investment returns over the year, superannuation is intended to provide for members in their retirement,” said Mr Rappell. “Members may have decades until their retirement and a long-term view should be taken when assessing investment outcomes.”

Hostplus continues to be the top performer over the 10-year period, with the fund’s Balanced option delivering to members 8.9% p.a., closely followed by Brighter Super’s Balanced option return of 8.8% p.a. Hostplus also captured the third position with its Indexed Balanced option returning 8.7% p.a., while Australian Retirement Trust and AustralianSuper’s Balanced options rounded out the top five with returns of 8.7% p.a. and 8.5% p.a. respectively.

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. *Based on SR Balanced Index options with SAA of 60-76% growth assets tracked by SuperRatings.
“This year has been another strong result, well above the long-term annual return of 7.3% since compulsory superannuation began in 1992. Converted into dollars, $100 invested in the median balanced super fund in 1992 would now be worth over 10 times that amount at approximately $1,099” continued Mr Rappell.

Investment fluctuations likely to continue in FY27

The 2026 financial year saw considerable ups and downs resulting from global events and these conditions are likely to persist over the coming year. The US-Iran outlook remains uncertain, and questions remain over how the expected productivity gains of artificial intelligence will translate into corporate profits, as well as the broader outlook for economic growth and inflation here and abroad. While younger members will have many years to recover from any downturns, minimising account balance swings may be pivotal for the retirement planning of those approaching, or already in, retirement.

“Protecting member balances from larger moves in markets is a key function of superannuation investment teams, and the importance of this role only grows as members approach the end of their working life. While funds that were more defensively positioned have not benefited as much from the growth that markets have delivered in recent years, strong diversification helps shelter members from market fluctuations and supports smoother returns over the long term.”

The table below shows the top 10 funds ranked according to their level of volatility, which measures how much members are being rewarded for taking on the ups and downs in their balances.

First Super members had the highest return for the amount of risk taken over the past seven years, returning 7.1% p.a. While Hostplus and Australian Retirement Trust’s Super Savings product returned 8.1% and 7.9% p.a. respectively, they did so while taking more risk.

Returns are after investment fees and taxes and are rounded to one decimal place; however, rankings are determined using unrounded data held by SuperRatings. Based on SR Balanced (60-76) Index with SAA of 60-76% growth assets tracked by SuperRatings.

Over the coming months, super funds will begin sending out their annual statements and this is a great opportunity for members to review their fund’s performance and fees, check if their personal details are up to date and ensure any insurance arrangements remain suitable for their circumstances. Taking some time now to get these settings right can have an enormous positive impact on your super balance at retirement and SuperRatings encourages members who seek greater clarity or advice to reach out to their fund or a trusted professional financial adviser to understand what support is available and what costs, if any, there are for receiving advice.

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Kirby Rappell

For the fourth consecutive year, superannuation funds have delivered strong returns to their members, with leading superannuation research house SuperRatings estimating that the median balanced option returned 1.2% over the month of June, bringing the return for the year to 30 June 2026 to an estimated 9.1%. This result arrives largely off the back of the strong performance of international share markets, whilst Australian markets delivered a more modest gain.

Despite the strong headline result, investors have experienced considerable ups and downs over the course of the year. In the nine months to 31 March 2026, the median balanced option had returned just 2.8%, as the outbreak of conflict between the US and Iran weighed heavily on investment markets. However, as the situation in the Middle East saw signs of stabilising, and the growth of AI continued, international shares regained ground, driving funds toward a rapid recovery in the final quarter of the financial year. Standout performers within the international shares sector included chip, storage and other hardware manufacturers supplying companies involved in the artificial intelligence sector.

Director of SuperRatings, Kirby Rappell, said “This year was characterised by considerable market volatility, especially following the outbreak of the US-Iran conflict in March, which placed pressure on super fund performance. However, we once again saw the benefits of staying the course, as funds delivered strong performance to close out the financial year.”

The median growth option exhibited an estimated a 1.3% return over the month, while capital stable options, which hold more traditionally defensive assets such as cash and bonds, returned 0.9%.

Pension returns also ended the financial year strongly, with the median balanced pension option up an estimated 1.3% over June. The median growth option rose by 1.4%, whilst the median capital stable option is estimated to deliver a 1.0% return for the month.

With the key driver of performance continuing to be international, and particularly US, shares the policy decisions of US President Trump have significantly impacted fund returns since taking office. During the shocks of the Iran conflict and with ongoing threats of tariffs following ‘Liberation Day’, members may have seen their super balances decline over shorter periods of time. However, if they have remained invested in the median balanced option, they would have received an estimated 13.4% return over the initial 18 months of the second Trump presidency (Trump took office on 20 January 2025, returns are calculated from 1 January 2025 to 30 June 2025), further underscoring the importance of maintaining an investment strategy in the face of short-term market shocks.
Superannuation returns 1 January 2025 to 30 June 2026

Mr Rappell commented “Despite considerable market volatility, super funds have continued to perform strongly. Looking ahead there remains uncertainty around market performance over the next 12 months, including whether anticipated productivity gains from AI will translate into economic and corporate growth. In Australia, persistent inflation remains a concern, with recent RBA rate increases underscoring the ongoing challenge. If inflationary pressures persist, they could act as a headwind for Australian markets and investment returns.”

​​Super fund performance resilient amid market volatility

The chart below shows that the average annual return since the inception of the superannuation system is estimated to be 7.3%, with the typical balanced fund exceeding its long-term return objective of CPI+3.0%.

Global share markets were the key driver of super fund returns in FY2026, marking a fourth straight year in which listed equities underpinned performance. Investor enthusiasm for AI remained strong, with technology infrastructure and hardware manufacturers benefiting the most from the AI investment boom, replacing the traditional ‘Magnificent Seven’ technology stocks which drove returns over previous years as the standout performers for FY2026.

In contrast, Australian shares lagged their international counterparts with the ASX200 returning 2.8% compared to over 20% delivered by the S&P 500. While mining and commodities stocks generated strong returns, these gains were tempered by weakness in the banking sector, with CBA and NAB shares both finishing the financial year with share prices lower than where they started the year.

Even amid recent market volatility and geopolitical unrest, members can take comfort in knowing their retirement savings continue to grow, with super funds experiencing just four periods of negative returns over the past 34 years.

SuperRatings continues to highlight the importance of staying focused on long-term investment objectives when it comes to superannuation. Despite periods of heightened market volatility, the strong returns delivered over the past four years highlight the benefits of remaining invested. Members who moved into lower-risk options with larger allocations to cash and fixed interest investments during market downturns may have missed out on substantial gains during subsequent recoveries.

With super funds issuing their annual statements in the coming months, SuperRatings encourage members to take this as an opportunity to review their investment strategy, assess their fund’s investment performance, review the fees they are paying and ensure that any insurance arrangements remain suitable for their needs. Members seeking greater clarity or advice should reach out to their fund or a trusted professional financial adviser to understand the support available and any costs for getting advice.

“It’s been another incredible year for the retirement balances of Australians,” said Mr Rappell. “However, with uncertainty lingering and markets sitting at or near record highs, investors should continue to expect volatile returns and temper their enthusiasm for similarly strong performance over coming years.”

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Kirby Rappell

Superannuation balances fell sharply over March as events in Iran evolved and the disruption to global oil supplies exacerbated emerging economic pressures. Leading research house SuperRatings estimates the median option will report negative returns across the balanced, growth and capital stable indices.

The median Balanced option is estimated to have declined by -3.2% in March, wiping out the gains accumulated since September 2025. As a result, the financial year to date return for the SR Balanced index has eased to 2.8%. The median Growth option is estimated to have fallen by -4.1% and more defensive strategies were not immune, with the median Capital Stable option recording an estimated loss of -1.8% over the period.

“With just one quarter remaining in the financial year, the pathway for funds to once again outperform their long-term average is narrowing, with returns confronting elevated levels of uncertainty across both global and domestic markets”, commented Kirby Rappell, Director of SuperRatings. “Markets are responding quickly to a rapidly evolving situation. This means we are likely in a period of greater volatility. While this will flow through to balances, it should be remembered that member’s super is usually invested across a range of asset classes (not just shares) and that over the long term, super returns remain sound.”

Pension returns followed the same downward trend seen in accumulation indices, with SuperRatings estimating losses across Balanced, Growth and Capital stable pension options in March will exceed accumulation option losses.

“March’s results reflect the reality that superannuation returns are being pulled in multiple directions: geopolitical issues, global market volatility, and interest rate changes all influence performance,” continued Mr Rappell. “While negative months are difficult, it’s important to remember super is a long-term investment and markets can recover over time.”

Mr Rappell also noted that periods of market stress can increase switching risk, where members may respond to uncertainty by moving their investments to cash or more defensive assets. “When markets fall sharply, it’s natural for some members to feel uneasy and consider switching to cash,” he said. “But switching after markets have already fallen can lock in losses and may mean missing the rebound when conditions improve, potentially leading to a poorer retirement outcome over the long term.”

SuperRatings encourages members who are concerned about short-term market volatility to seek financial advice from their fund or a trusted financial adviser before changing their investment option. Members should also ensure they are aware of any costs involved in getting advice before proceeding.

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Kirby Rappell

Despite the Reserve Bank of Australia raising rates at the start of the month superannuation balances continued to grow in February. Superannuation research house, SuperRatings, estimates the median balanced option rose by 1.1% over the month.

To the end of February, funds have delivered small but consistent positive returns in most months to drive a respectable 6.3% return for the financial year to date. However, with events currently occurring in the Middle East and inflation expectations pointing towards the potential of further rate increases, funds are likely to have an uncertain path towards the end of FY26.

The median growth option rose by an estimated 1.2% over February, while the median capital stable option is estimated to deliver 0.8% to members.

Pension returns delivered similar results with the median balanced pension option growing by an estimated 1.3%. The median capital stable pension option is estimated to return 0.9% over the month, while the median growth pension option is estimated to be in line with Balanced options returning 1.3% for the same period.

We have already seen significant movement in share markets over the beginning of March with super balances estimated to now sit below where they were at the beginning of February. The median balanced option is estimated to have fallen by -1.6% over March, while the median growth option lost -2.0% over the same period. The more defensively positioned Capital Stable option is also estimated to have taken a loss from the war, with an estimated -0.9% fall since the beginning of the month.

“The events currently occurring in the Middle East have brought fresh uncertainty to markets already feeling the pressure of expectations surrounding artificial intelligence”, commented Director of SuperRatings, Kirby Rappell. “While we have yet to fully see how returns will respond, it is worth remembering that when markets are more turbulent, the focus should be on long-term strategy and outcomes to ensure you reach your retirement goals. For any members that are concerned about their fund’s performance it may be helpful to seek advice before making a decision. Advice services are often available through the fund, or members can seek professional financial advice, just remember to confirm what costs, if any, are involved before proceeding with the advice”.

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Kirby Rappell

2025 delivered another year of strong returns to superannuation members, with the median Balanced option finishing the year on a high note following a small stumble in November. The median Balanced option reported a 0.3% return in December, and 8.8% for the full 2025 calendar year, below last year’s 11.1%, but comfortably exceeding the long-term average of 6.5% p.a. since 2000.

The median Growth option also returned 0.3% in December and broke double digits with a 10.2% return over the year, while a smaller allocation to shares resulted in the median Capital Stable option returning 0.1% for the month and 6.2% across the year.

Pension members benefited from the tax concessions on their earnings, with the median pension Balanced option matching the 0.3% accumulation return in December but outperforming accumulation options over the year with a 9.8% return.

International shares continued to demonstrate their value over 2025 and were the only asset class to reach double digit returns for the year. Australian shares also contributed strongly to fund returns, although they fell just short of reaching double digits for the year, while property and infrastructure assets added a more modest mid-single digit return. Fixed interest and cash both delivered similar returns over the year, with the median options returning between 3.7%-4.0%.

Funds have done well in delivering strongly for members over the longer term. An investment of $100,000 in the median Balanced option 16 years ago would now be worth $304,911, while investing in the median Growth option would now be worth $337,878. Members who invested in Cash would have $146,378.

Raiz Super was the top performer in the SuperRatings Balanced (60-76) Index for the second consecutive year with its Moderately Aggressive option returning 12.4% over 2025. Small funds also proved they can deliver strong returns, with legalsuper taking out second and NGS Super taking out the third spot over the year with 11.3% and 11.2% returns respectively.

Younger members in MySuper options that use a lifecycle model continue to benefit from higher growth exposure, with all of the top 10 lifecycle options for members aged 45 and younger delivering double digit returns over the year, rewarding these members’ tolerance for the higher risk of volatile balances.

With lifecycle options delivering three consecutive years of above average performance members may be tempted to change their investment strategy in response. While there have been benefits to this design over the past few years it is worth considering the additional ups and downs higher growth exposure is likely to see over time and if this is suitable for your situation and risk appetite. We encourage any member considering a change to seek professional advice, either through their fund or a trusted adviser. However, remember to check if there will be a cost for doing so before going ahead.

Superannuation remains a long-term investment for most, with the majority of members looking at investing for decades before they access their superannuation in retirement. Strong, sustainable, long-term returns are key to setting up for a comfortable retirement with the top performing funds over 10 years listed below.

The Hostplus – Balanced option remains the top performer over the long-term, with an average return of 8.7% pa., closely followed by Australian Retirement Trust – Super Savings – Balanced with an average return of 8.5% pa. The Hostplus – Indexed Balanced option took out third with an 8.3% pa. return while AustralianSuper’s Balanced option closely followed with an average 10 year return of 8.2% pa.

With shares once again driving most of 2025’s returns, passive investment options, where a fund tracks a specified index, have outperformed their more traditional actively managed counterparts for the third consecutive year. Raiz Super – Moderately Aggressive was also the highest performing balanced passive option with its 12.4% return over the year, well above the next highest performer, HESTA’s Indexed Balanced Growth option which returned 10.5%.

The table below displays the top 5 passive fund returns over 2025 and the past 5 years, as most of these options having been available within superannuation for less than 10 years.

Returns from investments with a sustainable focus were more subdued than in previous years, delivering similar returns to the broader Balanced options. The top performer for 2025 was the Australian Retirement Trust – Super Savings – Socially Conscious Balanced option with a 10.6% return, followed by the Hostplus – Socially Responsible Investment – Balanced option with 10.1%. All other tracked sustainable Balanced options returned under 10% for the year. Over a 5-year period, the Aware Super Future Saver – Balanced Socially Conscious option was the top performer with an 8.8% per annum return.

Director of SuperRatings, Kirby Rappell said, “We have seen another strong year of superannuation returns. Funds continue to deliver above expected returns; however, there remain concerns over how long such growth can last. A negative return in November meant the median Balanced option missed reaching double digits for 2025 and the outlook for 2026 is increasingly unclear. We encourage all members to focus on their long-term outcomes and ensure they are comfortable with their superannuation settings so they can tune out any noise in the coming months.

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Kirby Rappell

Property and Australian shares weighed on fund returns in November, breaking the seven-month run of positive returns that have been boosting superannuation balances. Leading superannuation research house SuperRatings estimates that the median balanced option returned -0.5% to members over the month.

“We expect most asset classes to have delivered negative returns over the month with Listed Property and Australian shares seeing a pullback.” commented Kirby Rappell, Director of SuperRatings. “While this month breaks the strong run, 2025 is well on track to be an above average year for member balances, with the 11 months to 30 November 2025 estimated to have returned 8.7% against a median of 7.1% for the full year since 2000.”

The median growth option fell by an estimated -0.6% in November, while the median capital stable option is estimated to return -0.2% for the period.

Pension returns also fell over the month, with the median balanced pension option also falling by an estimated -0.5%. The median capital stable pension option is estimated to fall -0.2% over the month, while the median growth pension option is estimated to fall -0.7% for the same period.

“The estimated decline means a second consecutive double digit calendar return is unlikely”, continued Mr Rappell, “however members should be pleased that returns remain strong over the long term with the median balanced option providing an estimated 7.1% per annum over the last 25 years. For pension members, the results have been even better with the median balanced pension product is estimated to return 9.5% for the 11 months to 30 November 2025”.

While the returns so far are worth celebrating, the reserve bank of Australia held interest rates in the final meeting of 2025 and the trajectory of inflation into 2026 remains somewhat uncertain. It is important to remember the long-term nature of superannuation and the benefit of holding steady to your long-term strategy should we see increased ups and downs over the second half of the 2026 financial year.

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Kirby Rappell

The strong run of positive returns for superannuation funds continued in October with superannuation research house SuperRatings estimating that the median balanced option returned 1.3% to members over the month. October marks the seventh consecutive month of positive returns, while also making this year the sixth time over the past 25 years the first four months of the financial year have all delivered positive returns.

“Share markets continued to remain optimistic over October driving a good return for the month” commented Kirby Rappell, Director of SuperRatings. “While international shares remain the key driver, Australian shares had a better month, and outcomes were positive across key asset classes.”

The median growth option grew by an estimated 1.4% in October, while the median capital stable option grew by 0.8%.

Pension returns were also strong over the month, with the median balanced pension option increasing by an estimated 1.4%. The median capital stable pension option is estimated to grow 0.9% over the month while the median growth pension option is estimated to rise 1.5% for the same period.

“November brought the second consecutive month of interest rates being left on hold by the Reserve Bank of Australia with inflation sitting higher than anticipated. Geopolitical tensions continue to create the potential for market shocks meaning we may see some more bumps in the road over the coming months” continued Mr Rappell. “However, funds have had a strong start to the financial year and returns remain well above objectives over the long term. We encourage members to review any changes with their long-term strategy in mind and seek advice if they are unsure how to maximise their final retirement outcomes.”

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Kirby Rappell

With the AI thematic and a US federal rate cut bolstering international share market returns, superannuation research house SuperRatings estimates that the median balanced option returned 0.8% to members over September. International share markets delivered strong returns over the month, particularly markets in southeast Asia and the US. The returns cap off a strong first quarter for FY26 with the median balanced fund expected to return 3.6% over the last three months.

The median growth option is estimated to grow 0.9% in September, while the median capital stable option is estimated to return a more modest 0.5%.

Pension returns were also positive for the month, with the median balanced pension option increasing by an estimated 0.9%. The median capital stable pension option is estimated to rise 0.6% over the month while the median growth pension option is estimated to rise 1.0% for the same period.

“While international markets have performed well this month, Australian shares are expected to have a dampening effect on overall returns as fears that higher than expected levels of inflation will reduce the likelihood of further rate cuts” commented Kirby Rappell, Director of SuperRatings. “Over recent years we have seen a shift in super fund investments towards a more equal mix of Australian and international shares, compared to the historically higher Australian shares allocation.”

“We continue to see the benefits of having a range of asset types, regions and sectors with a long-term focus” continued Mr Rappell. “For most of us, super is a long-term investment, and we encourage members to formulate and stick to a long-term plan that is suitable for them. Funds provide a range of education, tools and advice that can help members work out a suitable strategy, or members can seek independent financial advice, just make sure to check on and be comfortable with any cost for advice before going ahead.”

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Kirby Rappell

Super returns continue to build over August

Following a smooth start to the financial year in July, super balances continued to rise in August with leading superannuation research house SuperRatings estimating that the median balanced option returned 1.3% to members over the month.

“In contrast to the volatility we saw at the beginning of August last year, returns have seen a smoother performance over the first two months of FY26.” commented Kirby Rappell, Director of SuperRatings.

The median growth option grew by an estimated 1.5% in August, while the median capital stable option, rose an estimated 0.8%.

Pension returns also continue to deliver for retirees, with the median balanced pension option increasing by an estimated 1.4%. The median capital stable pension option is estimated to have returned 0.9% over the month while the median growth pension option is estimated to have returned 1.7% for the same period.

We expect the major factor influencing super returns over the short term will shift from the impact of US tariffs back towards inflation levels and central bank decisions on when to act on interest rates, both in Australia and the US.

“We have now had five consecutive months of positive monthly returns for super, building Australian’s retirement savings.” continued Mr Rappell. “While the longer-term impacts of US tariffs, high valuations and the trajectory of inflation need careful monitoring, members should be comforted by the track record of Australian funds delivering strong returns for members over the long term.”
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The post Super returns continue to build over August appeared first on AdviserVoice.

Kirby Rappell

In a year of extraordinary global events, Australians can find comfort in their retirement balances continuing to grow. The first half of the year brought back some much-needed stability to fund returns; however, the second half saw extreme ups and downs as global events threw markets into turmoil. The final result, a double digit return for the median Balanced option, fails to capture the ups and downs experienced over the 12 months to 30 June 2025 but reinforces the benefit of taking a long-term approach to retirement savings.

In what feels like a replay of the past two years, international technology and Australian financial shares drove the majority of returns with options designed to track a benchmark outperforming more active investing strategies thanks to exceptional multiyear growth in a small number of companies.

All Balanced funds, those with a strategic allocation of between 60% to 76% of their portfolio invested in growth assets, are again expected to deliver positive returns to members, while over half are expected to reach double digits for the year. Raiz Super’s Moderately Aggressive option took out the top spot in the SR50 Balanced (60-76) Index for the year ending June 2025 with a return of 13.8%, while legalsuper’s MySuper Balanced option return of 12.6% came in second. Hostplus’ Indexed Balanced option ranked third with a 12.0% return, closely followed by Colonial First State’s Enhanced Index Balanced option which also returned 12.0%.

The table above displays the performance of the top performing Balanced funds for the year to 30 June 2025, as well as showing 10-year returns for those options with 10-year performance history, an important consideration given the long-term nature of superannuation investments.

“It’s pleasing to see a range of funds in this year’s top performers with some smaller funds showing their ability to deliver strong returns to their members through uncertain times” said Kirby Rappell, Director of SuperRatings.

Passively invested options, those tracking a benchmark at low cost, had another stellar year led by the strong returns of the magnificent seven in the US and CBA in Australia. The median passive investment option returned 11.8% for the year and 8.8% per annum over the past five years.

The top performing passive fund was Raiz Super’s Moderately Aggressive option with a return of 13.8% for the year to 30 June 2025, followed by netwealth Super Accelerator’s BlackRock GSS Index Plus Growth Fund and Aware Super’s Future Saver – Balanced Indexed option at 13.7% and 12.7% respectively.

Younger members with increased exposure to growth assets benefited from being invested in default lifecycle options over the year. For members aged 45 invested in lifecycle options the median return was 12.0% for the year. “While higher exposure to growth assets has benefited members over the past few years, it also comes with increased ups and downs, and we encourage members to learn how their fund’s investment strategy works so they are comfortable with annual and long-term performance outcomes.”

Members invested in sustainable focused options have seen returns similar to the broader balanced option outcomes with the median sustainable balanced option returning 10.2%. Vanguard Super’s Ethically Conscious Growth option delivered the strongest return for a sustainable option with a 12.6% return for the year.

“With so many global events over the year there has been an increased level of uncertainty around fund returns this year” commented Mr Rappell. “However, superannuation is designed to build and maintain wealth for retirement and since most of us will have plenty of time until we retire and begin accessing our superannuation it is important to block out as much of the noise as possible and focus on how we are doing over the long term”.

Hostplus’ Balanced option remained the highest performing balanced option over 10 years returning of 8.3% p.a. followed by Australian Retirement Trust’s Balanced option and AustralianSuper’s Balanced option with 8.2% and 7.9% respectively.

“This year has been a strong result, well above the long-term annual return of 7.2% since compulsory superannuation began in 1992. Converted into dollars, $1 invested in the median balanced super fund in 1992 would now be worth approximately $2.84” continued Mr Rappell.

More ups and downs expected ahead over FY26

The increased ups and downs in the second half of FY25 were another reminder that superannuation settings need to be monitored to ensure they are suitable to current circumstances. Depending on when members need to begin drawing on their funds, they may have the option to ride out these kinds of ups and downs, however for members nearing, or in, retirement minimising these fluctuations can be a key factor in their retirement planning.

“Protecting members’ balances from sharp falls is a key function of superannuation investment teams and grows in importance as members near retirement or uncertainty rises,” said Mr Rappell. “While some funds that were more defensively positioned didn’t benefit as much from growth over the year, having strong diversification helps shelter members from market fluctuations and supports smoother returns over the long term”.

The table below shows the top 10 funds ranked according to their level of volatility, which measures how much members are being rewarded for taking on the ups and downs in their balances.

Members in the Australian Retirement Trust’s Super Savings product had the least ups and downs over the past seven years and returned of 8.0% p.a. over the past 7 years. This was followed by Brighter Super and Aware Super with returns of 8.3% and 7.5% p.a. respectively.

End of financial year is a great time to check not just how your fund has been performing but also that your superannuation settings are still right for you. Making changes that reflect your current situation will truly pay off when you see the difference it makes to your retirement balance. It is usually worth checking if the investment option you are invested in remains suitable for your current lifestyle and risk tolerance, any insurance cover is at an appropriate level and cost and to make sure all your personal details are up to date. If you are unsure about what your settings should be, most funds have a range of tools and calculators on their websites to help you. You also don’t have to wait for your annual statement to find your current details, with most funds offering a range of communication channels including phone, online portal, chat and mobile apps.

When making a choice it may also be worth seeking some help. SuperRatings provides over 200 product ratings on its website and funds often offer advice services to their members either directly or through associated advice networks. Advice comes in a range of detail and cost so make sure you understand what services are available and how much they will cost before going ahead with the service. Alternatively, you can always contact your own trusted financial adviser to discuss your superannuation settings. If you don’t have one yet the MoneySmart website contains information on how to choose a suitable adviser.

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