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Majority of Vanguard Super’s options record double-digit growth
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund’s low-cost Lifecycle (default MySuper) investment option has delivered a return of 13.5 per cent during the financial year 2024-25 for members aged 47 and under, marking the second consecutive year of double-digit returns for Vanguard Super’s flagship investment option.
Over two years, the Lifestyle product has delivered an annualised return of 13.6 per cent.
Meanwhile, the fund’s diversified and single-sector options also delivered strong returns over the financial year, with its High Growth diversified option returning 13.5 per cent, while its Growth and Ethically Conscious Growth diversified options returned 11.8 per cent and 12.6 per cent, respectively.
For sector-specific investment options, Vanguard Super’s International Shares returned 16.7 per cent, and Australian Shares returned 13 per cent.
The fund’s Balanced diversified option and Conservation option were the only ones not to deliver double-digit returns at 9.9 per cent and 7.8 per cent, respectively.
Duncan Burns, Vanguard’s Asia-Pacific CIO, said the strong performance across the fund’s range “has been encouraging”.
“We’re pleased that our low-cost, index-based approach to superannuation is continuing to
deliver strong outcomes for members,” he said.
“The 2024-25 financial year was a tale of two halves. The year began on a relatively stable note,
while the second half saw periods of market volatility, which is a normal part of long-term
investing.
“Superannuation is a long-term investment, and it’s important for Australians to maintain a long-term perspective.”
Moreover, Vanguard Super reported an increase of 44 per cent in assets under management (AUM) since the beginning of the year, exceeding $3 billion.
According to Burns, this growth was a result of strong market performance and over 17,000 Australians switching their super to the fund.
“Performance is important, but so are fees and costs, as they reduce members’ returns,”
Burns said.“ Unfortunately for Australians, super fees aren’t always presented transparently. At Vanguard Super, our products have low yearly fees that are easy to understand."
AUTHOR
Adrian Suljanovic
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The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
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