The return on a median growth superannuation fund return so far in the 2026 financial year (FY26) was 6.4% after a rebound in global share markets in April, Chant West said.
The research, data and analytics provider said the balance of a median growth fund (61–80% invested in growth assets) rose 2.6% in April, recouping a significant portion of the 3.2% loss in March.
Chant West said international markets were also up in May and, with just six weeks remaining in the year to 30 June, the median growth fund return was sitting at 6.4%, compared with 9.2% in all of FY23, 9.1% in FY24, and 10.4% in FY25.
Head of Superannuation Investment Research Mano Mohankumar said the April rebound was driven by the tenuous ceasefire in the Middle East and solid corporate earnings in the United States.
He said developed market international shares returned 9% in hedged terms, led by the technology and communications services sectors amid ongoing investor enthusiasm for AI (artificial intelligence), while the return in unhedged terms was lower at 4.4% due to the appreciation in the Australian dollar.
Emerging markets shares rose 9.3% in unhedged terms, while Australian shares generated a 2.3% gain and Australian and international bonds returned 0.1% and 0.3% respectively.
“The experience over the past two months is a timely reminder that super is a long-term game,” Mohankumar said in a media release.
“Members who panicked in March and switched to cash or a lower risk diversified option, not only turned paper losses into real ones, but also missed out on the subsequent market rebound.
“Missing even short periods of strong returns can have a significant impact on retirement outcomes due to the power of compounding.”
Since the introduction of compulsory super in July 1992, the median growth fund has generated an annual return of 8%, or 5.3% after inflation, which was above the typical 3.5% target.
Over the last 20 years, which includes three major share market downturns, high inflation and rising interest rates in 2022, returns were 6.6%.
