Australian Super Funds Hit 12.3% Returns in FY26 as AI Boom Drives Growth

Australian superannuation growth funds posted their fourth straight year of strong returns in the 2025-26 financial year, with the average growth fund returning 9.5 per cent. Industry fund UniSuper delivered the best result at 12.3 per cent, followed by NGS Super and Colonial First State at 11.5 per cent each. International shares surged 25.5 per cent in hedged terms, driven by artificial intelligence enthusiasm and robust corporate earnings, while Australian shares returned just 6.2 per cent.

UniSuper leads with 12.3% return

UniSuper topped the growth fund rankings for the 2025-26 financial year with a 12.3 per cent return, according to research house Chant West. NGS Super and Colonial First State tied for second place at 11.5 per cent, while Hostplus posted 10.8 per cent. The average growth fund, defined as having 61 to 80 per cent in growth assets, returned 9.5 per cent over the 12 months.

International shares and AI drove the gains

International shares surged 25.5 per cent in hedged terms, supported by what Chant West head of super investment Mano Mohankumar called “continued enthusiasm for AI and robust corporate earnings.” In unhedged terms, international shares returned 17 per cent. Better-performing funds were those with higher allocations to international shares, particularly where a larger proportion had currency hedging. Australian shares, by comparison, returned a modest 6.2 per cent.

Fourth straight year above 9 per cent despite market turbulence

Superannuation funds posted strong returns despite tensions in the Middle East, lingering inflation concerns, and periods of market volatility. The 2025-26 result marks the fourth consecutive year that super funds have returned above 9 per cent. Over four years, the cumulative return reached 44 per cent. This sustained performance reflects the structural tailwinds of compulsory superannuation and positive market conditions supporting growth assets.

Balanced funds also delivered double-digit returns

Research house SuperRatings revealed its top 10 balanced super options for the past financial year, which it defines as 60 to 76 per cent exposure to growth assets. Raiz Super’s Moderately Aggressive option ranked first with a return of 13.4 per cent. The average balanced fund returned 9.4 per cent. These results show that growth-oriented strategies across super options benefited from the same AI-driven international market rally.

Final Thoughts

Australian super members enjoyed strong returns in FY26, with growth funds averaging 9.5 per cent and the best performers topping 12 per cent. Currency-hedged international share exposure proved the key driver. Long-term performance matters more than any single year, but four consecutive years above 9 per cent signals sustained momentum.

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