Australian superannuation funds generated a 1.5% return for median balanced options in the accumulation phase in July, according to SuperRatings estimates.
The super research house said super funds had made a smooth start to the new financial year after increased volatility and a late rally in the last financial year.
The July result was below the 1.9% return in the first month of the 2025 financial year (FY25), which produced a return of 10.1% over the full 12 months, marking the third successive year of strong investment performances.
“Markets continue to tolerate increased volatility with both Australian and international share markets starting the new financial year with a positive return,” SuperRatings Director Kirby Rappell said in a media release.
“Following the turmoil of the initial tariff announcements, markets continue to be taking news in their stride at present.”
SuperRatings said the median growth option returned 1.8% and the median capital stable option 0.7% in the first month of FY26.
Pension returns in July were a little higher, with the median balanced pension option increasing by an estimated 1.6%, the media growth option 2.0% and the capital stable pension option 0.8% over the month.
Rappell said the timing of future changes in interest rates remained uncertain now that inflation was within the Reserve Bank of Australia’s target range.
“Strong July returns were a nice way to start the year; however, we remain cautious of the outlook for FY26 given the current strength of valuations and lingering global uncertainties which have the possibility to drive changes in Australia’s superannuation returns,” he said.
Returns remained at just over 7% per year since the start of compulsory superannuation in 1992.
“We encourage members to remain focused on the long term, with many of us having years or even decades before we start drawing on our super,” Rappell said.
