Super investment performance update: October 2025
Over the past three months, share markets have picked up again, helped by signs that inflation is easing and interest rates may soon start to fall.
Slower inflation means the prices of everyday goods and services aren’t rising as quickly, which eases pressure on households and gives central banks more confidence to start lowering interest rates. With inflation now sitting near levels the Reserve Bank in Australia and the Federal Reserve in the United States appear comfortable, investors have taken this as a positive sign for future growth, which has in turn supported investment returns.
This combination of easing inflation and the possibility of lower interest rates is encouraging for long-term investors and our funds and superannuation options. But it also reminds us of the importance of staying selective, maintaining perspective and focusing on quality – especially when share markets are already trading at near record highs and global risks remain ever present.
Australian Ethical Super option returns to 30 September, 2025
| 1 year (%) | 7 years (%) | 10 years (%) | |
|---|---|---|---|
|
Australian Ethical Balanced Accumulation option Target: Consumer Price Index +3.25% (over 10 years) |
9.3
|
7.0
|
7.3
|
|
Australian Ethical Growth option Target: Consumer Price Index + 3.75% (over 10 years) |
10.3
|
7.8
|
8.1
|
|
Australian Ethical High Growth option Target: Consumer Price Index + 4.25% (over 10 years) |
11.3
|
8.7
|
9.2
|
|
Australian Ethical Australian Shares option Target: ASX300 Total Return Index (over 7 years) |
5.0
|
9.1
|
9.9
|
|
Australian Ethical International Shares Accumulation option Target: MSCI World Index ex Australia (over 3 years) |
10.2
|
11.0
|
17.7
|
*Option returns are net of fees and tax. CPI benchmarks are gross. Returns are for the periods outlined to the end of 31 March 2024. Past performance is not a reliable indicator of future performance.
See performance for all super options
Focus on quality
While gains have been rewarding for investors, they also remind us to stay disciplined. When share prices rise as strongly as they have, it means markets can become expensive, and that increases the risk of sharp corrections if confidence fades.
Our approach focuses on investing in quality companies with reliable earnings, rather than those driven by short term hype or higher profit margins that may not last.
We spread our investment widely – across different regions and asset classes. This diversification helps to reduce risk and provides a broader set of opportunities, including in smaller Australian companies that may have stronger potential for future growth.
Beyond listed markets, we are also increasing our allocation to private markets that can deliver steady, long-term returns and don’t always move in line with share markets.
For close to 40 years, we’ve been investing through all kinds of market cycles. Guided by the same Ethical Charter and long-standing investment process. We continue to seek out opportunities that are not only financially sound but also contribute to a more sustainable and positive future.
Important information
Interests in the Australian Ethical Retail Superannuation Fund (ABN 49 633 667 743, USI AET0100AU) are offered by Australian Ethical Investment Ltd (ABN 47 003 188 930, AFSL 229949) and issued by the Trustee of the Fund, Australian Ethical Superannuation Pty Ltd (ABN 43 079 259 733, RSE L0001441, AFSL 526 055).
This information is of a general nature and is not intended to provide you with financial advice or take into account your personal objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances and read the Financial Services Guide, relevant product disclosure statement (PDS) and Target Market Determination (TMD) available on our website before making any decision about what is appropriate for you.
You may wish to seek financial advice from an authorised financial adviser before making an investment decision. Past performance is not a reliable indicator of future performance.
Ratings or investment returns are only one factor you should consider when deciding how to invest. Remember, superannuation is generally a long-term investment.
This document may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, the Australian Ethical accepts no responsibility for the accuracy or completeness of, nor does it endorse any such third party material. To the maximum extent permitted by law, we intend by this notice to exclude liability for this third party material.
Investing ethically and sustainably means that the investment universe will generally be more limited than non-ethical, non-sustainable portfolios in similar asset classes. This means that the portfolio(s) may not have exposure to specific assets which over or underperform over the investment cycle, and so the returns and volatility of the portfolio(s) may be higher or lower than non-ethical, non-sustainable portfolios over all investment time frames.
The information contained in this document is believed to be accurate at the time of compilation.
