HESTA, Cbus, Mercer report super returns

HESTA, Cbus and Mercer have delivered strong returns for members over the financial year 2025-26 despite global uncertainty, attributing it to their diversification strategy.

HESTA's MySuper Balanced Growth option delivered 9.46% returns whereas Cbus default Growth (MySuper) option delivered a 9.25% return for members this financial year.

Retail super fund Mercer's default option SmartPath provider slightly better returns between 10% to 10.6% for the same period across age-based cohorts for members aged between 18 and 52.

Mercer said despite market volatility, geopolitical headwinds and global economic uncertainty, the fund is delivering for members and showcasing the importance of well-diversified portfolios.

Mercer Super chief investment officer Graeme Miller said the performance is anchored in its long-term strategy of building portfolio resilience with investments across many countries, industries and asset classes.

Cbus Super chief investment officer Leigh Gavin also noted the fund's diversified investment model to continue to provide a buffer against global instability.

"What we've seen during this financial year really echoes the previous one, which was heavily impacted by geopolitical events," he said.

"Our ability to invest in real assets across infrastructure, property and private debt, and our long-term approach to investing, anchors the fund amidst increasingly unpredictable global markets."

Gavin added Cbus's partnerships with high-quality private equity investment managers gives members exposure to companies like SpaceX and Anthropic well before they hit public markets and valuations may climb.

"In many cases, our members are invested in these companies years before they are on stock exchanges," Gavin said.

HESTA chief investment officer Sonya Sawtell-Rickson said resilient global share markets were a key driver of strong performance this year, with the portfolio well-positioned to navigate a volatile year in markets.

"Our considered, diversified approach helped us deliver a strong financial year result for our more than one million members amid a challenging geopolitical environment," she said.

"We were able to manage risks in a volatile environment while also acting quickly on new opportunities that emerged as markets moved."

Miller said Mercer will continue to strengthen its portfolio resilience through increased liquidity management.

"Looking ahead, we are seeking to access the most reliable sources of return, economic growth and corporate profits along with further diversification opportunities, with a particular focus on global unlisted property and private equity," Miller said.

With persistent inflation and ongoing geopolitical uncertainty likely in the year ahead, Sawtell-Rickson said HESTA is staying focused on investments in areas where it sees compelling long-term value, including healthcare, housing, climate solutions and artificial intelligence.

Last week, Australian Retirement Trust (ART) and AustralianSuper also reported solid investment returns, with both funds crediting diversified portfolios and strong global equity markets for the performance despite heightened geopolitical uncertainty.