Hostplus’ MySuper Balanced option delivered significantly stronger returns in 2024–25, bouncing back from the previous year when its cautious stance on listed markets came at a cost to members.
Hostplus has reported double-digit returns for FY2024–25 across all Balanced and Growth investment options, with its flagship Balanced option returning 10.81 per cent for the year to 30 June, while the Indexed Balanced option returned 12.02 per cent.
Last year, the fund’s MySuper Balance Option returned only 7.60 per cent for the financial year ending June 2024, as a result of a more defensive position to listed markets – a move made to cushion against challenging economic conditions.
Hostplus CEO David Elia said the fund’s FY24–25 performance reinforced the “strength” of the fund’s investment strategy and its ability to deliver consistent, long-term outcomes for its members.
“Our Balanced (MySuper) option has a track record as the number one performing fund over 10, 15, and 20 years, and that speaks for itself. Ultimately, long-term performance is what matters most – because retirement is a long-term journey,” Elia said.
“We’re proud to tell our Balanced option members that with Hostplus, they’re benefiting from industry-leading returns of 8.32 per cent per annum over 10 years and 7.72 per cent per annum over 20 years, and that’s after fees and taxes.
“Returns like these can make a real difference to financial security in retirement,” he added.
The fund’s pension options also performed strongly for the year to 30 June 2025, with the Balanced and Indexed Balanced pension options returning 12.22 per cent and 13.43 per cent, respectively.
Continued growth in equities markets alongside the solid performance of unlisted assets were cited by chief investment officer Sam Sicilia as driving growth. He particularly pointed to emerging markets and the fund’s strategic positions in US and Chinese domestic equities as key drivers.
Sicilia said: “Hostplus’ investment performance, in the context of this year’s investment market uncertainty, has served as a powerful reminder of why a disciplined, long-term strategy remains essential.”
“We continued to see growth in equity markets, despite periods of significant volatility, which was matched by strong performance across unlisted asset classes – including infrastructure, private equity and credit,” Sicilia added.
Overall, superannuation funds have posted another year of strong returns in 2024–25, but this time, the gains weren’t powered solely by Silicon Valley.
Namely, in contrast to the tech-led surge of FY2023–24, the past year witnessed a broader uplift across asset classes, with domestic equities, infrastructure and global markets beyond the US all contributing meaningfully to performance.
But despite the back-to-back strong years, most funds are preparing for more muted returns ahead.
AMP’s chief economist, Shane Oliver, offered a note of caution earlier this month, highlighting several risks that could test market resilience. As a result, he expects returns to come in around 6–7 per cent over the next 12 months.
Topping Oliver’s list of concerns is the escalation of US tariffs – news that has gained momentum in recent days.
