Vanguard Super’s default Lifecycle investment option delivered a 13.5 per cent return for members aged 47 and under, matching the performance of its High Growth diversified option.
The fund’s sector-specific International Shares and Australian Shares options returned 16.7 per cent and 13.0 per cent, respectively.
Moreover, Vanguard Super’s diversified Growth and Ethically Conscious Growth options returned 11.8 per cent and 12.6 per cent, respectively, in FY24–25, while its Balanced and Conservative options delivered more modest gains of 9.9 per cent and 7.8 per cent.
The results mark the second consecutive year of double-digit performance for Vanguard’s flagship option, which launched in late 2022 and now manages more than $3 billion in assets.
Vanguard’s Asia-Pacific chief investment officer, Duncan Burns, said the year was marked by two distinct halves, with a relatively stable start followed by increased market volatility.
“The 2024–25 financial year was a tale of two halves. The year began on a relatively stable note, while the second half saw periods of market volatility, which is a normal part of long-term investing,” Burns said.
“Superannuation is a long-term investment, and it’s important for Australians to maintain a long-term perspective.”
Meanwhile, Colonial First State’s FirstChoice Employer Super Growth (MySuper Lifestage 1975–79) option returned 12.8 per cent over the year, while its Balanced (1965–69) option returned 11.4 per cent.
Over three and five years, the Growth option returned 13.1 per cent and 10.9 per cent, and the Balanced option returned 11.3 per cent and 9.1 per cent, respectively.
CFS chief investment officer Jonathan Armitage said equity markets were the primary driver of performance, particularly following a rebound after an April sell-off linked to geopolitical tensions and tariff announcements from the Trump campaign.
“We have also benefited from the recent additions of emerging market equities and increasing the hedging ratio of global equities,” Armitage said, noting that returns were starting to normalise but remained above long-term averages.
CFS’ funds under management stood at $168 billion as of 30 June.
The strong returns come as members increasingly scrutinise fees and long-term performance amid rising awareness of the impact of superannuation on retirement outcomes.
Vanguard and CFS, both retail funds, continue to compete for market share with industry funds, which have also reported solid FY24–25 returns in recent days.
