Chant West data reveals outstanding returns for Australian investors as inflation eased and markets surged.

A Stellar Year for Super Funds

2024 was a remarkable year for Australian superannuation funds, with growth funds delivering exceptional returns. Newly released data from Chant West highlights that the median growth super fund achieved an impressive 11.4% return, well above the long-term target of 6% and even surpassing 2023’s 9.9% return.

This marks the 12th year of positive results out of the last 13—a testament to the resilience of Australian super funds in the face of changing economic conditions.

What Drove This Performance?

According to Chant West senior investment research manager Mano Mohankumar, the outstanding returns were driven largely by international share markets, which yielded 21.2% on a currency-hedged basis and a staggering 31.2% unhedged. The Australian dollar’s depreciation—from 68 US cents to 62 US cents—played a key role in this disparity.

Meanwhile, ASX-listed stocks delivered a strong 11.4% return, contributing significantly to the overall growth. Super funds with higher allocations to shares and lower allocations to cash and bonds were among the top performers.

A Breakdown of Returns by Fund Type

• All Growth Funds (96%–100% in growth assets): 16.5% median return
• High Growth Funds (81%–95% in growth assets): 13.8% median return
• Growth Funds (61%–80% in growth assets): 11.4% median return
• Balanced Funds (41%–60% in growth assets): 8.7% median return
• Conservative Funds (21%–40% in growth assets): 6.3% median return

Mohankumar noted that unlisted property saw modest losses, while private equity and unlisted infrastructure posted gains of 7%–10%. Listed real assets also performed well, with Australian listed property returning 17.6%, while international listed property and infrastructure yielded 2.8% and 11.9%, respectively.

Top 10 Median Growth Superannuation Funds of 2024

Based on Chant West’s findings, here are the top 10 performing growth funds, defined as those with 61%–80% in growth investments:

Note: Performance figures are net of investment fees and taxes but exclude administration costs.

The Takeaway

The data underscores the importance of asset allocation in superannuation performance. Funds with higher exposure to international shares, growth assets, and foreign currencies thrived in 2024.

As 2025 unfolds, staying informed about your superannuation fund’s strategy and performance could be the key to maximizing your retirement savings.

For more insights into the Australian investment landscape, visit Pristine Gaze and explore our in-depth reports and analysis.