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Morningstar Category Returns (Q3 2025)

Overall Category Returns

Morningstar Target Allocation Indexes

Here is where we want an accurate description about the data displayed and/or the table's intent
	3 Month	YTD	1 Year	3 Year	5 Year
Group/Investment	Return (Cumulative)	Return (Cumulative)	Return (Cumulative)	Return (Annualised)	Return (Annualised)
Morningstar Australia Conservative Target Allocation NR	1.02	4.56	4.73	5.28	1.72
Morningstar Australia Moderate Target Allocation NR	2.26	6.32	6.71	8.00	4.02
Morningstar Australia Balanced Target Allocation NR	3.34	7.92	9.04	10.82	6.61
Morningstar Australia Growth Target Allocation NR	4.43	9.62	11.30	13.60	9.39
Morningstar Australia Aggressive Target Allocation NR	5.51	11.10	13.77	16.60	12.23

Source: Morningstar Direct. Currency: AUD; Data as of 30 September 2025.

Morningstar Asset Class

Here is where we want an accurate description about the data displayed and/or the table's intent
	3 Month	YTD	1 Year	3 Year	5 Year
Group/Investment	Return (Cumulative)	Return (Cumulative)	Return (Cumulative)	Return (Annualised)	Return (Annualised)
Morningstar Australia GR	4.68	11.10	9.98	15.10	13.23
Morningstar Global (ex. AU) Hedged NR	8.01	15.27	16.48	20.62	12.76
Morningstar Global (ex. AU) NR	6.39	10.45	22.32	21.38	15.00
Morningstar Australia REIT GR	9.76	20.99	11.97	16.95	10.58
Morningstar Global (ex. AU) REIT Hedged NR	2.60	6.36	−3.51	5.39	3.82
Morningstar Australia Core Bond GR	0.35	4.51	4.00	4.25	−0.48
Morningstar Global (ex. AU) Core Bond Hedged GR	0.95	3.53	2.17	3.63	−1.11
Morningstar Cash AUD GR	0.90	2.92	4.03	3.92	2.41

Source: Morningstar Direct. Currency: AUD; Data as of 30 September 2025.

Morningstar Sector

Here is where we want an accurate description about the data displayed and/or the table's intent
	3 Month	YTD	1 Year	3 Year	5 Year
Group/Investment	Return (Cumulative)	Return (Cumulative)	Return (Cumulative)	Return (Annualised)	Return (Annualised)
Morningstar Australia Technology GR	0.04	2.41	−2.50	23.51	9.52
Morningstar Australia Real Estate GR	4.60	10.02	3.43	18.48	11.24
Morningstar Australia Industrials GR	3.32	13.44	13.08	16.07	10.38
Morningstar Australia Healthcare GR	−11.84	−19.93	−17.87	−3.31	−2.51
Morningstar Australia Financial Services GR	1.10	14.68	21.79	23.49	21.68
Morningstar Australia Utilities GR	11.12	15.45	9.63	9.10	5.65
Morningstar Australia Energy GR	−0.44	2.90	−0.47	3.27	13.87
Morningstar Australia Consumer Defensive GR	−1.30	−1.28	−7.19	−1.33	2.59
Morningstar Australia Consumer Cyclical GR	9.88	19.10	21.85	25.13	14.78
Morningstar Australia Commercial Services GR	2.83	15.61	17.38	16.74	13.26
Morningstar Australia Basic Materials GR	21.41	20.72	6.08	11.66	12.69

Source: Morningstar Direct. Currency: AUD; Data as of 30 September 2025.

Superannuation Category Returns

Top 5 Performing Categories

Here is where we want an accurate description about the data displayed and/or the table's intent
	3 Month	YTD	1 Year	3 Year (Annualised)	5 Year (Annualised)
Group/Investment	Return (Cumulative)	Return (Cumulative)	Return (Cumulative)	Return (Annualised)	Return (Annualised)
Australia Superannuation Equity Global Resources	16.34	23.32	22.27	10.59	13.10
Australia Superannuation Equity Australia Mid/Small Blend	11.63	16.18	15.44	14.02	9.54
Australia Superannuation Equity Asia Pacific w/o Japan	11.31	16.66	17.82	13.54	5.67
Australia Superannuation Equity Australia Mid/Small Growth	11.12	18.39	17.57	14.17	10.53
Australia Superannuation Equity Global Technology	10.90	16.74	36.24	30.97	NA

Source: Morningstar Direct. Currency: AUD; Data as of 30 September 2025.

Bottom 5 Performing Categories

Here is where we want an accurate description about the data displayed and/or the table's intent
	3 Month	YTD	1 Year	3 Year	5 Year
Group/Investment	Return (Cumulative)	Return (Cumulative)	Return (Cumulative)	Return (Annualised)	Return (Annualised)
Australia Superannuation Bonds - Global	0.90	3.89	2.48	3.31	−0.41
Australia Superannuation Bonds - Global / Australia	0.79	3.78	3.03	3.70	−0.12
Australia Superannuation Australian Cash	0.76	2.48	3.41	3.17	1.99
Australia Superannuation Unconstrained Fixed Income	0.71	3.21	4.03	3.87	2.42
Australia Superannuation Bonds - Australia	0.53	3.78	3.47	3.55	−0.55

Source: Morningstar Direct. Currency: AUD; Data as of 30 September 2025.

Announcements

Press Release: Morningstar announces clearer, simplified Medalist Rating to empower investor success

[Upcoming webinar] Medalist Rating Enhancements: What you need to know Thurs., 11 Dec. 11 a.m. AEDT | Register now

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Leader Speak

Charting Morgans’ Future: Q&A with James Macaulay

Stepping into the CEO and Managing Director role earlier this year, James Macaulay brings two decades of experience and a lifetime of connection to Morgans. In this Q&A, he talks about the culture that has kept advisers loyal, the opportunities shaping the next decade, and how Morgans is investing in technology, talent and community to build a modern, client-focused advice business.

Morningstar Quarterly Asset Flows (Q3 2025)

Top 5 Morningstar Fund Categories by Net Flows (AU$ million)

Bottom 5 Morningstar Fund Categories by Net Flows (AU$ million)

Top 5 Morningstar ETF Categories by Net Flows (AU$ million)

Bottom 5 Morningstar ETF Categories by Net Flows (AU$ million)

Net Flows Across Active v. Passive Funds (AU$ million)

Net Flows by Morningstar Sustainability Rating (AU$ million)

Assets Flows across Superannuation Categories

Top 5 Superannuation Categories by Net Flows (AU$ million)

Bottom 5 Superannuation Categories by Net Flows (AU$ million)

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EXECUTIVE BRIEF

Amelia Furr’s outlook for our transforming Indexes business

As Morningstar Indexes enters a major new chapter, incoming President Amelia Furr reflects on the momentum built over the past five years and the opportunities ahead, especially as the CRSP acquisition expands the business’s scale, credibility and global reach. In this conversation, Amelia shares her vision for the next phase of growth, her approach to leadership and what keeps her inspired outside of work.

Latest Articles and Research

Manager Research

Morningstar announces clearer, simplified Medalist Rating to empower investor success

As part of our ongoing commitment to transparency and investor outcomes, we want to outline upcoming changes to our Medalist Rating™ that will take effect globally in April 2026, with additional local changes for Australia and New Zealand later in the year. These updates are designed to provide greater transparency, stability and usability, empowering investors to more easily identify investments with the potential to outperform their Morningstar Category average. Visit our Medalist Ratings mcirosite to learn more.

Superannuation

Superannuation 360 Quarterly: Q3 2025

Our latest Superannuation 360 Quarterly is now live, offering a clear, independent snapshot of the superannuation landscape across markets, performance, flows and industry activity. This edition brings together the trends and signals that matter most right now, helping you understand how peers are responding to the current environment and anticipate where opportunities and challenges may emerge heading into 2026.

Manager Research

Webinar: Active/Passive Barometer 2025

The Active/Passive Barometer evaluates the efficacy of active funds against a composite of passive fund performance and gauges how the average dollar invested in active funds has fared versus the average dollar in passive funds within the specified categories across various time frames. Watch this 45-minute session, where the authors of this report share their key takeaways and insights from the report.

Sustainability

Navigating Controversy Ratings in the Era of Double Materiality

Not all ESG analyses clearly distinguish between financial risk and impact. However, examining how ESG factors affect a company is crucial for investment decisions. Double materiality analysis offers deeper insight into both the financial impact of ESG factors on a company and the company’s societal and environmental impact, which can become financially significant over time. This report highlights how distinct risk and impact signals can support investors’ evaluation of company incidents. Using a double materiality approach can help investors distinguish between controversies primarily affecting business risk and those with significant stakeholder or environmental impact.

Part 1 Part 2

BEHAVIOURAL FINANCE

Don’t gamble with your risk tool

Risk tolerance is a deeply personal trait. It shapes how we think, feel, and behave, and is a core part of our identity and psychology as investors. Yet, it’s notoriously difficult to measure this trait accurately. Despite this, risk-tolerance tools are commonplace in the industry. Many are built on shaky foundations, lacking scientific rigour or validation evidence. Advisers should choose a tool that leads to in-depth discussions to help clients understand themselves and the risks of investing.

Read more

Manager Research

KiwiSaver rises to almost NZD 135 billion

Morningstar's quarterly KiwiSaver Survey is designed to help New Zealand investors assess the past performance and other key characteristics of their KiwiSaver superannuation options. The accompanying tables show KiwiSaver fund returns for the three months and one, three, five, and 10 years to 30 September 2025.

Private Markets

Private market integration in Australia’s Supers

One of the defining shifts in the superannuation investment strategy over the past 15 years has been the growing allocation to unlisted assets. According to APRA’s 2025 statistics, supers now hold around 18% of total assets in private markets, comprising roughly 8% in infrastructure, 5% in unlisted equity/PE, and 4% in unlisted property. This steady increase reflects a structural pivot away from the concentrated domestic-listed market and toward longer-dated assets that better match the liability profile of retirement savings. Yet in global terms, Australian supers remain relatively underweight.

Superannuation

Beyond the Benchmark: Rethinking How We Measure Investment Success

In a year of regulatory reviews and shifting market dynamics, Morningstar gathered leaders representing $1.8 trillion FUMAS to examine whether legacy benchmarks still serve members well. The discussion unpacked the impact of the APRA performance test, benchmark constraints, industry consolidation and what truly defines long-term investment success.

Harness independent thought leadership with extensive equity and manager research, and keep tabs on the market with convenient components like watchlists and screeners.

Morningstar Direct

This publication is powered by Morningstar Direct and showcases a collection of articles, reports and thought leadership. Regular topics include: ESG/Sustainability, Estimated Funds Flows, Product Updates and Enhancements, Regulatory Changes, and updates from our Manager Research team.

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