Global, domestic equities ‘key driver’ for CFS’ FY25 returns

Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.

CFS’ FirstChoice Employer Super growth fund (MySuper Lifestage 1975–79) has delivered a return of 12.8 per cent over FY2024–25, while the fund’s FirstChoice Employer Super balanced (MySuper Lifestage 1965–69) fund option delivered a return of 11.4 per cent.

Over three and five years, CFS’ Super growth fund delivered a return of 13.1 per cent and 10.9 per cent, while its Super Balanced fund delivered a return of 11.3 per cent and 9.1 per cent.

In a year marred by market volatility, heightened tensions abroad, and policy uncertainty, CFS’ CIO Jonathan Armitage highlighted global and domestic equities as a key driver of returns over the past 12 months.

“The recovery in equity markets following the sharp selloff at the start of April, triggered by significant tariffs from the Trump administration, is a testament to how quickly markets can shift,” Armitage said. 

“We have also benefited from the recent additions of emerging market equities and increasing the hedging ratio of global equities.”

While markets have rebounded, Armitage noted that elevated uncertainty remains prevalent, emphasising the “volatile nature of the current market environment”.

“As we anticipated, investment returns are now starting to come back down to more normalised levels but remain higher than long running averages,” he said.

“Pleasingly, following three consecutive years of double-digit returns we have been able to significantly improve performance over both three and five-year periods. This achievement underscores our commitment to delivering consistent value to our members.”

CFS CEO Kelly Power commented that the fund is “particularly pleased” with the FirstChoice Employer Super exhibiting a strong performance over a three and five-year period.

“We know that strong performance, low fees and good customer service are important to our members, and we are pleased to be consistently delivering in each area,” she said.

Over the year to 30 June 2025, CFS’ total funds under management (FUM) stood at $168 billion.