MLC Super eyes beaten-down assets after strong FY25 returns

MLC Super Fund has posted strong returns for the 2025 financial year, crediting steady asset allocation and broad diversification for navigating a noisy investment landscape.

Its flagship High Growth option returned 11.4 per cent for the year to 30 June 2025, matching its five-year annualised performance.

Meanwhile, the MLC MySuper Growth option returned 10.1 per cent over the year and 9.2 per cent per annum over five years.

Dan Farmer, chief investment officer at MLC Asset Management, said the team stayed disciplined through a volatile year marked by geopolitics, inflationary moderation, and shifts in US leadership.

“2025 has been another strong year for our members with good, absolute returns, off the back of a very strong FY24,” Farmer said.

“This year was one of the noisiest we’ve had in a while, but despite the noise, we have delivered strong returns and good outcomes for members, against a volatile market backdrop.”

Global and Australian equities were key contributors, with MLC maintaining a neutral equity position throughout the year.

“We’ve seen a change of government in the US, geopolitical issues and moderating inflation, yet equity markets have remained strong. We were well positioned for this and maintained neutral equity weights throughout the year,” Farmer said.

“Holding that neutral weight sounds easy, but there were times throughout the year where that was pretty challenging, and we had to actively rebalance our portfolios to stay close to benchmark. The worst thing you can do in these situations is panic and make knee jerk decisions.

“We remained calm and disciplined, held equity weights and that has put us in pretty good stead over the year.”

Private credit, infrastructure, and alternatives also performed well, with Farmer noting that “diversification and disciplined asset allocation” remained the fund’s strategic bedrock.

Looking ahead, MLC sees selective opportunities in segments that have underperformed in recent years, including unlisted property and retail.

“Looking forward we will remain selective, measured and diversified; but we see opportunities in infrastructure, credit and areas that have been ‘beaten up’ in recent years, including unlisted property and retail,” Farmer said.

“While we’ve typically been underweight in some of these areas, we’re now upping our weights and finding new opportunities for our members.”