Growth options at the top end clocked returns of up to 12.3%, outpacing expectations shaped by geopolitical tension and higher interest rates. Members in leading funds effectively picked up an extra year of contributions from market performance.
Super funds in the growth category benefited most from strong listed technology shares across the United States and emerging markets, which drove portfolio gains. UniSuper came out on top, while Colonial First State’s FirstChoice growth option returned 11.5% for its members over the same period.
Many Australians in comparable growth options have now enjoyed four consecutive years of returns above 9%. That streak translates into a cumulative gain of about 44% on their super over those four years.
Investment teams say such outcomes defied early year expectations, which were clouded by worries about inflation, rising rates and conflict in the Middle East. Global sharemarkets still pushed higher, led by large US tech names and a recovery in selected emerging markets, which tend to be heavily represented in growth oriented portfolios.
Funds with higher allocations to these sectors saw a clear performance edge over more conservative strategies that leaned on cash or bonds.
Stronger results reinforce the case for long term exposure to growth assets inside super, especially for members still many years from retirement. Investment chiefs argue that, while year to year outcomes can swing sharply, staying invested through uncertainty has again been rewarded.
