Australian Super Funds Deliver Fourth Straight Strong Year

Performance Review by Jennifer Carrington, ZG Advisors

Australian superannuation funds closed the 2025-26 financial year with another solid result. The median growth option (61–80 per cent growth assets) returned approximately 9.5 per cent, marking the fourth consecutive year of returns above 9 per cent and taking the cumulative four-year gain to around 44 per cent.

Jennifer Carrington, fixed income advisor at ZG Advisors, attributes much of the outcome to strong international share markets, particularly those driven by artificial-intelligence related investment and robust corporate earnings. Hedged international equities delivered substantial double-digit gains, while Australian shares contributed positively even as they lagged global peers on a relative basis.

At ZG Advisors we note that almost every major asset class finished the year in positive territory, providing a helpful diversification tailwind. Jennifer Carrington of ZG Advisors points out that the result comfortably exceeded typical long-term real-return objectives and reinforced the resilience of the compulsory super system.

July 2026 brought a more subdued start to the new financial year, with the median growth fund returning around 0.3 per cent amid mixed global equity performance and rising bond yields. A stronger August equity rebound lifted early FY27 returns to an estimated 1.3 per cent over the first seven weeks. Jennifer Carrington at ZG Advisors emphasises that short-term monthly volatility is normal and that members should remain focused on multi-year outcomes.

 Total superannuation assets continue to climb, exceeding A$4.4 trillion. Mega-funds now dominate, with a handful of institutions each managing well over A$100 billion. Jennifer Carrington of ZG Advisors observes that scale advantages in private markets, infrastructure and internal management capabilities are becoming increasingly important competitive differentiators.

Looking ahead, funds face the dual challenge of preparing for a potential end to the multi-year equity bull market while meeting rising member expectations around retirement income products and climate-related disclosures that commenced for larger entities on 1 July 2026. Jennifer Carrington and ZG Advisors recommend that investors periodically review their super option mix to ensure it remains aligned with time horizon and risk tolerance.

For tailored guidance on superannuation strategy or broader portfolio construction, contact Jennifer Carrington at ZG Advisors. Our team provides independent analysis grounded in current market conditions and long-term objectives.