2025 delivered a clear reminder that size and popularity do not guarantee strong performance.
One of the most widely held funds in the country, AustralianSuper’s Balanced (MySuper) option underperformed the median super fund for the third consecutive year. For many members this came as a surprise.
The underperformance reflected two key factors. First, active management struggled as the U.S. sharemarket became highly concentrated. A small group of technology companies drove most returns and missing them meant missing the market. This can persist for years before eventually unwinding.
Second, unlisted assets delivered relatively weak performance over the period. This further weighed on returns while listed markets continued to rise.
Against this backdrop, the best performing super funds in 2025 were those that stayed close to the market through broad diversification and indexed investing rather than tactical shifts.
Over the 12 months to 31 December 2025 Stockspot Super delivered some of the strongest results among diversified super options.
Stockspot Super High Growth returned 19.0%. Stockspot Super Growth returned 17.4%.
These outcomes were materially ahead of many popular super funds with similar risk levels.
| Fund | Advertised defensive allocation (%) | Defensive allocation using cash, fixed interest and gold (%) | Return over period (%) |
|---|---|---|---|
| Stockspot Super High Growth (Topaz) | 22 | 22 | 19.00 |
| Stockspot Super Growth (Emerald) | 30 | 30 | 17.40 |
| Hostplus High Growth | 15 | 0 | 12.68 |
| Colonial First State High Growth | 15 | 1.5 | 11.18 |
| Australian Retirement Trust High Growth | 15 | 3 | 10.23 |
| AustralianSuper High Growth | 12 | 5.2 | 10.03 |
| Hostplus Balanced | 35 | 9 | 10.51 |
| Vanguard High Growth | 10 | 10 | 11.58 |
| AustralianSuper Balanced | 25 | 17.25 | 8.69 |
| Australian Retirement Trust Balanced | 35 | 17.25 | 9.55 |
| Rest Growth | 35 | 20 | 9.22 |
| UniSuper Balanced | 40 | 23 | N/A |
| HESTA Balanced Growth | 34 | 25 | 9.42 |
| Vanguard Growth | 30 | 30 | 9.89 |
Returns for the 12 months to 31 December 2025. Advertised defensive allocations are based on fund disclosures. Narrow defensive allocation includes only cash, fixed interest and gold. Returns shown over the same period. UniSuper returns were not available at the time of publishing.
What drove performance last year
Global sharemarkets delivered solid returns. U.S. large cap shares again led the way. Performance was driven by a narrow group of large technology companies. Strong earnings and growing confidence in long term AI adoption pushed markets higher. Stockspot’s Global 100 exposure returned 17.9% for the year.
Emerging markets strengthened in the second half of the year and returned 23.6% over the 12 months. South Korea and China led the recovery. This marked the first sustained period of outperformance versus developed markets since 2017. Many super funds have a relatively low exposure to emerging markets so missed much of this recovery.
The Australian share market returned 10.7%. The domestic economy remained resilient. Employment stayed strong and company earnings held up better than expected even as rate cuts were pushed further out.
Bonds delivered a positive return of around 3%. Volatility was elevated but bonds continued to provide balance when equity markets softened.
Gold was the standout performer. Prices rose 54.3% and reached multiple all time highs. Performance was driven by geopolitical tensions trade risks central bank buying and a weaker U.S. dollar. Stockspot was one of the only super options in Australia with a meaningful allocation to gold across all of it’s diversified options.
Why indexed options generally did better
One of the defining features of 2025 was market concentration.
A small group of technology and semiconductor companies drove a very large share of global equity returns as confidence in AI commercialisation accelerated.
This environment proved difficult for active managers. Missing a handful of stocks meant missing much of the market’s return.
Similar periods have occurred before including the Nifty 50 era of the 1960s and early 1970s. History shows concentration can persist longer than expected.
Indexed investors captured the full benefit of these trends. Many active and tactical strategies did not.
The takeaway for super members
2025 reinforced a simple lesson. Markets are hard to beat. Popular funds can underperform for extended periods. Complexity does not guarantee better outcomes.
For super members the most important question is not who tells the best story. It is which portfolios actually captured market returns.
Last year the answer was clear.
