2025 delivers bumper returns for these 10 alternative assets funds

Whilst Australian equities delivered respectable gains in 2025, some of the most striking results came from parts of the market that sit outside the traditional share portfolio. 

Investors who looked beyond listed equities and into infrastructure, private markets and other alternative strategies were, in several cases, rewarded far more handsomely than many might have expected.

Alternatives are often framed as portfolio diversifiers first and return drivers second. But 2025's set of returns certainly challenged that assumption. 

The top-performing alternatives fund delivered a remarkable 119.89% over the year, while the runner-up was not far behind with a 58.43% gain; numbers that would stand out in almost any asset class. 

Even beyond the top of the table, a range of funds delivered solid double-digit returns, supported by exposures ranging from natural resources to global infrastructure and private equity.

So which alternative asset funds led the pack in 2025, and what parts of this broad and often misunderstood universe were really responsible for the standout performance?

Read on to find out.

How we compiled these lists

Our performance data is sourced from Morningstar, and the funds listed are available on Livewire’s Find Funds menu (located in the top-right corner of the webpage). Note that this is not an exhaustive list of all Australian equity funds in the market.

Here’s how we filtered the results:

• Fund Type: Managed Fund
• Asset Class: Alternative Assets

We then manually refined the list based on 1-year returns.

NOTE: While it is an interesting exercise to examine fund performance over a one-year period, most funds recommend minimum investment periods of five years or more. As such, it would be worthwhile to consider longer-term performance across cycles when researching funds or making investment decisions. Past performance is not a reliable indicator of future return. 

The 10 top-performing Alternative Asset Funds in 2025

#1 - Tribeca Global Natural Resources Strategy

Managed Fund

Tribeca Global Natural Resources Strategy

Alternative Assets

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Fund profile: The Tribeca Global Natural Resources Strategy is an actively managed, long–short strategy providing global exposure to metals and mining, energy, soft commodities and carbon. The Fund takes a flexible approach, expressing views primarily through large-capitalisation, liquid equities, with the ability to invest in credit and commodities where appropriate.

The strategy is global in scope with a focus on developed markets and is built around high-conviction ideas informed by deep bottom-up industry research and technical expertise, allowing the team to actively navigate different phases of the resources cycle.

#2 - Datt Capital Absolute Return Fund

Managed Fund

Datt Capital Absolute Return Fund

Alternative Assets

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Fund profile: The Datt Capital Absolute Return Fund is an independent, research-led strategy focused on capital preservation and delivering consistent, risk-adjusted returns across different market environments. The Fund is not managed against a benchmark, instead targeting double-digit absolute returns over rolling two-year periods, with an emphasis on capital preservation across market cycles.

The portfolio is deliberately concentrated and invested in Australian-listed assets, with exposure across equities, special situations and fixed income, alongside the flexibility to hold cash. Investment decisions are driven by fundamental research and valuation discipline, with risk management central to portfolio construction.

Fund commentary

The excerpt below is taken from the Datt Capital December performance report.

December saw a continuation of sector rotation across Australian equities. Market leadership was concentrated in cyclicals, particularly Materials, while Technology and Healthcare underperformed. Financials delivered mixed results as investors weighed earnings momentum against persistent macro uncertainty.

Inflation remained elevated, with CPI surprising to the upside earlier in the quarter. The RBA maintained the cash rate at 3.60%, reinforcing a higher-for-longer interest rate environment. This contributed to late-month risk aversion, although overall market liquidity remained supportive and continued to create selective opportunities.

Portfolio Insights

Materials was the strongest contributor during the month, reflecting both sector tailwinds and stock-specific outcomes. Technology detracted as higher beta exposures were reduced across the market amid ongoing valuation pressure.

Key portfolio characteristics at month end:

• 23 positions held
• 91% of capital deployed
• Top five positions representing 46% of exposure
• Well diversified across sectors and holdings

We continue to observe a persistent valuation differential between large and small caps. M&A activity has also increased in the small cap segment, reinforcing the opportunity set for active, bottom-up stock selection.

#3 - GAM LSA Private Shares AU Fund

Managed Fund

GAM LSA Private Shares AU Fund

Alternative Assets

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Fund profile: The GAM LSA Private Shares AU Fund is a late-stage venture capital strategy offering exposure to high-growth private companies approaching potential liquidity events. Managed by GAM International Management in partnership with Liberty Street Advisors, the Fund focuses on established businesses with proven products, strong management teams and meaningful market share.

Structured as an Australian unit trust, the Fund invests into the GAM LSA Private Shares (Lux) master fund and targets medium- to long-term capital growth, with a stated return objective of 15–20% per annum (net of fees). The strategy is actively managed and suited to investors comfortable with private market liquidity and concentration risks.

#4 - 4D Global Infrastructure Fund (Unhedged)

Managed Fund

4D Global Infrastructure Fund (Unhedged)

Alternative Assets

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Fund profile: The 4D Global Infrastructure Fund (Unhedged) is an actively managed global listed infrastructure strategy run by boutique manager 4D Infrastructure. The Fund invests across developed and emerging markets and is index-agnostic and currency unhedged, allowing the portfolio to reflect the team’s highest-conviction ideas rather than benchmark weights.

The strategy targets quality infrastructure companies trading below assessed fair value, with a focus on sustainable earnings and growing dividends. Research is driven by a bottom-up team-based process supported by strategic macro insights. The Fund aims to outperform the OECD G7 Inflation Index + 5.5% per annum (before fees) over the medium to long term, with responsible investment embedded in the process.

Fund commentary

The excerpt below is taken from the 4D Infrastructure December performance report.

Markets remain volatile on the outlook for inflation, economic growth and the state of the labour market, as well as geopolitical concerns. Policy rates are generally stabilising, while long-term yields are steepening. 

There remains a fine balancing act between rates, resilient demand, inflation and geopolitical threats to trend. 

Listed infrastructure, as an asset class, fundamentally can do well in all scenarios - with explicit or implicit inflation hedges and long-term predictable earnings profiles underpinned by contract or regulation. 

Top 10 positions

Top 10 holdings as at 31 December 2025, from the 4D December performance report.

#5 - ClearBridge Global Infrastructure Income Fund (Hedged)

Managed Fund

ClearBridge Global Infrastructure Income Fund – Hedged

Alternative Assets

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Fund profile: The ClearBridge Global Infrastructure Income Fund (Hedged) is an actively managed global infrastructure strategy focused on delivering regular and stable income, supported by capital growth. The Fund invests in listed infrastructure securities globally, with returns drawn from dividends, distributions and interest, while currency exposure is hedged back to Australian dollars.

The Fund aims to outperform the OECD G7 Inflation Index + 5.5% per annum on an accumulation basis and also references the FTSE Global Core Infrastructure 50/50 Index. With daily valuation, over $2.09 billion in net assets (as at 31 December 2025) and a suggested three- to five-year time horizon, the strategy is positioned as an income-oriented infrastructure allocation.

Fund commentary

The excerpt below is taken from the ClearBridge December performance report.

Inflection in electricity demand and solid earnings growth helped listed infrastructure performance in 2025, and this looks set to continue in 2026, with the added benefit of lower nominal bond yields. 

Electric utilities, which make up the bulk of our portfolio, continue to benefit from several tailwinds: the energy transition, as poles and wires are built out to connect renewables to the grid and EV charging stations (all regulated expenditure for utilities and earning regulated returns); the mitigation of and adaptation to climate change impacts on electricity networks, which is driving resiliency spend; and growing electricity demand, particularly from AI data centres, but also from growing industrial demand. These tailwinds support a strong earnings backdrop and continued conviction in a balanced exposure to utilities.

Top 10 positions

Top 10 holdings as at 31 October 2025, from the ClearBridge top 10 holdings report. 

Other top funds

Managed Fund

4D Global Infrastructure Fund (AUD Hedged)

Alternative Assets

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Managed Fund

ClearBridge Global Infrastructure Income Fund – Unhedged

Alternative Assets

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Managed Fund

ClearBridge Global Infrastructure Value Fund - Hedged

Alternative Assets

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Managed Fund

Maple-Brown Abbott Global Listed Infrastructure Fund

Alternative Assets

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Managed Fund

ClearBridge Global Infrastructure Value Fund – Unhedged

Alternative Assets

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Important notes about the data

• We excluded listed products (namely ETFs) from this list as they will be covered in other wires, and to keep the focus of this piece on Alternative Assets.
• Fund performance is typically viewed over longer timeframes than one year (i.e. three-year and five-year rolling periods). Past performance is not a reliable indicator of future return. The tables above simply capture the best-performing funds, in their respective categories, for the past 12 months.
• All data is supplied by Morningstar. If you would like to conduct your own research into top-performing funds, you can do so by clicking here.