21 July 2025
All AustralianSuper PreMixed and DIY Mix investment options delivered positive outcomes for members for the 12 months to 30 June 2025 despite significant global market volatility.
It is pleasing to be able to deliver such a solid result for members notwithstanding the amount of risk investors had to factor into their decision making, particularly in recent months. Overall, the 2024-25 financial year was marked by an escalation in geopolitical conflicts, tariff policies and broad unpredictability for investors.
The Balanced option (Super), where most members are invested, returned 9.52% for the financial year ending 30 June 2025. The Balanced option for Choice Income (Pension) accounts returned 10.41% for the financial year ending 30 June 2025.
Meanwhile, the High Growth option returned 10.61% for Super and 11.56% for Choice Income during that time.
FY25 financial year investment performance update with Chief Investment Officer Mark Delaney
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Show transcript
Hi, and welcome to our 2025 financial year performance update. I'm Mark Delaney, Chief Investment Officer at AustralianSuper.
I'm pleased to report that all our investment options delivered solid returns for members during the year, despite significant volatility in global markets
This financial year, the Balanced option, where most members are invested, returned 9.52% for super accounts and over 10% for Choice Income accounts, our retirement product. A solid result considering the amount of risk we had to factor into our decision making.
The 2025 financial year was marked by escalating conflicts, changes to US trade policies and greater uncertainties for investors. We saw strong, consistent performance in the first half of the year, but this reversed in February as listed share markets fell sharply, driven by concerns about US tariffs and their impact on global growth.
Some stock market indices, like the Nasdaq Composite even entered bear market territory, meaning they fell by more than 20%. However, markets recovered quickly and as a result, the Balanced option gained over 4% for the three months to 30th June, making it the strongest quarter for the financial year.
So, what drove this performance? For the third year in a row, listed shares were the largest contributor of returns for our PreMixed options. International Shares led the way, followed by Australian Shares. Our index diversified option, which tracks the listed share market, was the best performing PreMixed option.
Unlisted assets, including infrastructure and private credit, also delivered strong results this year. These assets provided members with downside protection during the stock market selloff, which is why we invest in a well-diversified portfolio.
Fixed Interest in Cash also performed well during the year, with both asset classes benefiting from higher interest rates. In fact, when the share markets fell, Fixed Interest and Cash generated positive returns. This benefited our more defensive PreMixed options like Conservative Balanced and Stable.
Markets have been volatile recently and it may stay that way in the near term. There's still quite a bit of uncertainty around US policy and the ongoing geopolitical conflicts. That means we could see a range of outcomes for investment markets in the year ahead.
But it's important to stay the course. We saw some members switch into the Cash option when the balances fell in March and April, but from the April lows through the 30th of June, the Balanced option returned almost 9.5%, meaning that any member who switched may have missed out on the best returns of the year. That's why a longer-term view is so important, especially when it comes to your super.
Despite market ups and downs, our long-term performance shows that it's not about timing the markets. It's about time in the markets, which is why we have a global team of investment specialists who actively manage your super through those market ups and downs.
Finally, I'd like to thank you as an AustralianSuper member for the trust you continue to place in us. As Australia's largest super fund, we're committed to using our size, scale and expertise to help you achieve your best financial position in retirement.
For a more detailed review of this year's performance, join our webinar in August. You can register via our website.
End transcript
Asset class highlights
International and Australian listed shares were the largest contributors to the performance of AustralianSuper’s PreMixed options during the financial year.
Investments in unlisted assets also contributed meaningfully. Performance during the financial year was led by unlisted infrastructure and private credit, while private equity was more muted given less opportunity in the market to exit existing investments. Importantly, unlisted assets helped insulate member returns from the impacts of recent listed market stress, highlighting one of the benefits of a well-diversified portfolio.
Fixed interest and cash also performed well during the financial year, benefitting from higher interest rates. Both asset classes contributed positive returns during share market sell-offs, providing important downside protection for members.
Following another year of growth, AustralianSuper now manages over $385 billion on behalf of more than 3.5 million members. As the largest super fund, one in seven working Australians are a member of AustralianSuper1.
The returns for all PreMixed and DIY Mix investment options are shown below:
Super and TTR Income investment option performance as at 30 June 2025
| INVESTMENT OPTION | 3 Months | 1 Year | 3 Years p.a. | 5 Years p.a. | 10 Years p.a. | 15 Years p.a. | 20 Years p.a. |
|---|---|---|---|---|---|---|---|
| PreMixed Options | |||||||
| High Growth | 5.20% | 10.61% | 10.42% | 9.97% | 8.84% | 9.60% | 8.04% |
| Balanced | 4.38% | 9.52% | 8.72% | 8.53% | 7.94% | 8.69% | 7.62% |
| Socially Aware | 5.07% | 10.24% | 8.67% | 8.18% | 7.13% | 8.21% | 7.15% |
| Indexed Diversified | 5.69% | 11.98% | 11.67% | 9.14% | 7.61% | ||
| Conservative Balanced | 3.79% | 8.58% | 6.88% | 6.25% | 6.23% | 7.23% | |
| Stable | 2.92% | 7.30% | 5.09% | 4.18% | 4.75% | 5.70% | 5.55% |
| DIY Mix Options | |||||||
| Australian Shares | 7.44% | 13.24% | 13.27% | 12.93% | 9.93% | 9.99% | 8.76% |
| International Shares | 5.93% | 14.06% | 16.21% | 11.91% | 11.02% | 11.61% | 8.62% |
| Diversified Fixed Interest | 1.82% | 4.85% | 2.43% | 0.97% | 2.16% | 3.95% | 4.22% |
| Cash | 1.10% | 4.32% | 3.64% | 2.25% | 2.03% | 2.48% | 3.16% |
AustralianSuper investment returns are based on crediting rates, which are returns less investment fees and costs, transaction costs, the percentage-based administration fee deducted from returns from 1 April 2020 to 2 September 2022 and taxes. Returns don’t include all administration, insurance and other fees and costs that are deducted from account balances. Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns. Returns from equivalent options of the ARF and STA super funds are used in calculating return for periods that begin before 1 July 2006.
For TTR Income accounts, the investment return is based on the crediting rate for super (accumulation) options. From 1 April 2020 to 2 September 2022 the crediting rate includes an administration fee that was deducted from investment returns for super (accumulation) accounts. TTR Income accounts will be adjusted to refund the administration fee deducted from investment returns.
Choice Income investment option performance as at 30 June 2025
| 3 Months | 1 Year | 3 Years p.a. | 5 Years p.a. | 10 Years p.a. | 15 Years p.a. | ||
|---|---|---|---|---|---|---|---|
| PreMixed Options | |||||||
| High Growth | 5.68% | 11.56% | 11.47% | 10.96% | 9.68% | 10.56% |
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| Balanced | 4.87% | 10.41% | 9.55% | 9.29% | 8.62% | 9.57% |
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| Socially Aware | 5.58% | 11.21% | 9.55% | 8.97% | 7.89% | 9.09% |
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| Indexed Diversified | 6.46% | 13.48% | 13.12% | 10.19% | 8.53% | |
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| Conservative Balanced | 4.23% | 9.51% | 7.68% | 6.93% | 6.94% | 8.05% |
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| Stable | 3.22% | 8.05% | 5.71% | 4.63% | 5.29% | 6.38% | |
| DIY Mix Options | |||||||
| Australian Shares | 8.13% | 14.61% | 14.70% | 14.37% | 11.09% | 11.20% | |
| International Shares | 6.28% | 15.15% | 17.62% | 12.82% | 11.96% | 12.68% | |
| Diversified Fixed Interest | 2.13% | 5.73% | 2.83% | 1.09% | 2.51% | 4.56% | |
| Cash | 1.22% | 4.96% | 4.23% | 2.60% | 2.37% | 2.91% |
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Choice Income investment returns are based on crediting rates, which are returns less investment fees and costs, transaction costs and taxes. Doesn’t include all administration and other fees and costs that are deducted from account balances. Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns.
The financial year in review
Following strong performance through January 2025, listed share markets experienced a sharp sell-off between February and April 2025. This significant volatility was driven largely by geopolitical developments and US trade policies.
Specifically, a lack of clarity around US tariffs and their implementation raised concerns about the potential long-term impacts on the global economy. The relationship between the US and China was a particular point of focus, as the world’s two largest economies publicly engaged in trade negotiations.
Some stock market indices, like the Nasdaq Composite in the US, entered bear market territory during the height of the sell-off – meaning they fell more than 20% from highs in February to lows in April.
However, listed share markets recovered quickly during April and May. As a result, the Balanced option gained 4.38% during the three months to 30 June 2025, making it the strongest quarter of the financial year.
Several factors drove the recovery of listed share market performance during the June quarter. Overall uncertainty has declined in recent months, led by a de-escalation in trade policy by the US administration. This included a 90-day delay for most countries’ reciprocal tariffs, as well as the gradual easing of restrictions, or outright exemptions, for some sectors.
In addition, US corporate earnings delivered some better-than-expected results earlier in the year. Outside the US, some central banks, including the Reserve Bank of Australia (RBA), have continued to cut interest rates. These factors have been broadly supportive of listed shares.
Notably, the investment team has continued to deploy capital into new deals despite the uptick in volatility. Some significant investments from the past twelve months have included DataBank (US data centres), M7 Real Estate (European industrial and logistics) and an additional stake in Perth Airport.
Managing volatility
While members may have felt that recent market volatility was unprecedented, this is a normal part of the investment cycle. On average, our research suggests we could expect to see a bear market – or a downturn of more than 20% – occur every 2-3 years.
When markets recover, as they did in late April and into May 2025, we’re reminded why it’s important to stay the course and maintain a longer-term view, especially when it comes to your super. When markets fell, members who switched into defensive investment options, like Cash, risked missing out on the most substantial returns of the year that followed during the June 2025 quarter.
That’s why it’s often said, it’s not about timing the markets, but rather time in the markets. And it’s worth remembering, AustralianSuper has a team of investment specialists who actively manage each investment option through market ups and downs.
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Investment strategy and outlook
Markets may remain volatile in the short term as investment uncertainty remains elevated, driven both by the US administration and ongoing conflicts in the Middle East. There is the potential for a wide range of outcomes, specifically around trade and tariff policies, global geopolitics and conflict, and fiscal and monetary policy responses.
For example, it's still unclear what may happen after the US’ 90-day tariff pause expires on 9 July, and whether the administration will extend, amend or walk back those policies. Additionally, there may be lagged effects from tariffs on the economy, which could impact growth.
Although the direct trade impact on the Australian economy is likely to be small, much higher tariffs on China, our largest trading partner, and elevated domestic uncertainty could impact the growth and inflation outlook. However, the Reserve Bank is in a good position to respond and has already cut the cash rate twice during the first six months of this year.
As markets continue to respond to changes, our investment team will actively consider how to best position the portfolio for the long-term growth of member balances. This includes examining how the outlook for growth, employment and inflation are evolving, how technological developments like AI are impacting productivity and earnings, and how geopolitical issues will continue to impact global markets.
Investment markets prefer certainty, so any progress towards trade and geopolitical stability will likely facilitate a further recovery in global growth. However, the recent sell-off offered a reminder that volatile markets often lead to the mispricing of assets and market downturns can create buying opportunities for long-term investors like AustralianSuper.
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Enhancing member service
AustralianSuper is more than two years into a service transformation to improve member experience.
In April 2024, the Fund opened a Bereavement Centre to handle death claims in-house, improving processing times for members. We have also reduced complaints volumes by 32% and reduced complaints escalated to AFCA by 40%, since June 2024.
The Fund has reduced insurance premiums for the third year in a row, while also delivering help, guidance and advice to about 20% of members to help them plan for their future. Additionally, the Fund has rolled out extra multi-factor authentication security measures.
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Responsible Investment
At AustralianSuper, being a responsible investor means actively considering environmental, social and governance (ESG) issues with the aim of creating better long-term financial outcomes for members. We also offer members the Socially Aware investment option, which excludes certain assets based on ESG criteria.
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Investment option changes
The planned changes to the revised Socially Aware investment option were delayed due to external factors. We intend to launch the revised Socially Aware investment option in Q3 2025 and will communicate with members about the changes at that time.
Learn more about your advice options
Members have access to a range of advice, and you can learn more here.
References
1. Source: Australian Bureau of Statistics (Labour force) and AustralianSuper Member Data, December 2024.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
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