Australia’s major retail superannuation funds have delivered another year of robust investment returns, although most fell short of the exceptional gains recorded in FY25 as geopolitical tensions and market volatility weighed on performance.
Nevertheless, diversified portfolios, exposure to artificial intelligence-related investments and strong international equity markets helped many growth options achieve double-digit returns.
Colonial First State (CFS) led the latest results with a 12.74 per cent return for its MySuper growth fund, followed by AMP’s 12.1 per cent Future Directions High Growth option and MLC’s High Growth option, which returned 10.2 per cent.
CFS led the latest round of returns
CFS delivered the strongest reported performance among the major retail funds this week, with its FirstChoice Employer Super growth fund (MySuper Lifestage 1975-79) returning 12.74 per cent for FY26, while its balanced equivalent (MySuper Lifestage 1965-69) returned 10.81 per cent.
Although both results were slightly below FY25’s 12.8 per cent and 11.4 per cent respectively, they marked the fourth consecutive year of double-digit returns for eligible MySuper members.
CEO Kelly Power said the results reflected the fund’s disciplined investment approach.
“We know our members are looking for confidence and consistency, particularly in an environment of heightened global volatility. Our results this year again reflect a strong focus on delivering outcomes for our members, supported by a disciplined approach to investing.”
CIO Jonathan Armitage said emerging markets, global equities and AI-related investments were key contributors.
“We’re seeing new opportunities emerge as the development and deployment of technologies such as AI gathers pace, particularly as adoption grows among developing economies,” Armitage said.
“This requires investment processes to be flexible and adaptive to take advantage of opportunities and manage risk effectively.”
AI remained a common theme
AI continued to underpin returns across the sector, with fund managers pointing to technology companies and related infrastructure as major drivers of portfolio performance.
AMP said structural momentum behind AI-themed exposures, combined with overweight positions in international and emerging market equities, helped the majority of its MySuper members receive returns above 11 per cent for a third consecutive year.
Its Future Directions High Growth option returned 12.1 per cent, while its default MySuper 1970s and 1990s Lifestage options each returned 11.3 per cent.
Anna Shelley, chief investment officer at AMP, said: ““Markets rewarded patience and discipline this year, with positioning for resilient global earnings and the structural momentum behind AI driving strong returns for our members.
“The March sell-off was a reminder that geopolitical shocks can move markets quickly, but as
super fund managers it’s important we stay focused on the long-term drivers of returns and
the strength of diversified portfolios.”
MLC also credited global equities for driving returns despite heightened volatility across financial markets. Its High Growth option returned 10.2 per cent, while its MySuper Growth portfolio delivered 9.9 per cent.
CIO Dan Farmer said it had been difficult to imagine double-digit returns when markets slumped during the Iran conflict earlier in the year.
“This financial year’s returns have been driven in large part by equities but also strong performance in alternatives and private credit,” Farmer said.
Diversification continued to cushion volatility
Despite another year marked by geopolitical uncertainty, higher interest rates and inflation concerns, fund executives consistently highlighted diversified portfolios as the key reason returns remained resilient.
Farmer said the year’s performance demonstrated the importance of remaining invested through periods of market stress.
“This last financial year, more than just about any other year I can think of, shows the importance of staying the course,” he said.
“We’re anticipating further volatility over the coming year but see our portfolio as well placed to deal with it moving forward.”
Returns eased from FY25 highs
While FY26 remained another strong year for super members, most funds reported lower returns than the previous financial year as market conditions became more challenging.
CFS’s growth option slipped marginally from 12.8 per cent to 12.74 per cent, while its balanced option eased from 11.4 per cent to 10.81 per cent. AMP’s strongest MySuper options remained above 11 per cent, while
MLC maintained double-digit returns in its High Growth option despite heightened market volatility.
Although geopolitical risks remain elevated, executives across the sector said structural investment themes including AI, resilient global earnings and disciplined diversification should continue to support long-term retirement outcomes.
