POWERED BY MOMENTUM MEDIA
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
Recommended for you
The latest superannuation performance test results have shown improvements, but four in 10 trustee-directed products continue to exhibit “significant investment underperformance”, warns APRA.
The corporate regulator has launched civil proceedings against Equity Trustees over its inclusion of the Shield Master Fund on super platforms it hosted, but other trustees could also be in the firing line.
The shadow minister for financial services says reworking the superannuation performance test to allow investment in house and clean energy risks turning super into a ‘slush fund’ for government.
Australia’s superannuation sector has expanded strongly over the June quarter, with assets, contributions, and benefit payments all recording notable increases.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
