Australian superannuation funds have delivered strong returns for the fourth consecutive year despite month-to-month volatility and due mainly to the United States and other international sharemarkets, according to SuperRatings.
The superannuation research house estimated the balance of a median balanced option in the accumulation phase delivered a return of 9.1% in the year to 30 June 2026 after a 1.2% return in the final month.
“This result arrives largely off the back of the strong performance of international share markets, whilst Australian markets delivered a more modest gain,” SuperRatings said in a media release.
“Despite the strong headline result, investors have experienced considerable ups and downs over the course of the year.“
The median growth option produced an estimated return of 10.6% after 1.3% in June, while the median capital stable option returned 5.9% following 0.9%.
In the nine months to 31 March, the median balanced option had returned just 2.8% as the outbreak of conflict between the U.S. and Iran weighed heavily on investment markets.
However, as the situation in the Middle East appeared to stabilise and the growth of artificial intelligence (AI) continued, international shares regained ground, driving funds toward a rapid recovery in the final quarter of the financial year.
SuperRatings said standout international shares included chip, storage and other hardware manufacturers supplying companies involved in the AI sector.
“This year was characterised by considerable market volatility, especially following the outbreak of the U.S.-Iran conflict in March, which placed pressure on super fund performance,” SuperRatings Director Kirby Rappell said.
“However, we once again saw the benefits of staying the course, as funds delivered strong performance to close out the financial year.”
Funds in the tax-free pension phase returns also ended strongly, with the median balanced option returning 10.2% after a 1.3% gain in June, the median growth option delivering 11.1% following 1.4%, and the median capital stable option producing a 6.4% return after 1.0%.
The policy decisions of U.S. President Trump had significantly affected returns, as the key driver of performance continued to be international, and particularly U.S., shares.
Super balances fell for short periods during the shocks of the Iran conflict and ongoing threats of tariffs, but members in the median balanced option would have received an estimated 13.4% return over the first 18 months of his second presidency.
