Super funds post modest September gains

Super funds have recorded modest gains in September as global equity strength and an AI-driven rally lifted investment returns.

Superannuation research house SuperRatings has estimated that the median balanced option has returned 0.8 per cent to members over September, supported by strong international sharemarkets and an ongoing artificial intelligence theme.

The performance has capped off a solid first quarter for FY26, with the median balanced fund expected to return 3.6 per cent over the past three months.

According to SuperRatings, global market sentiment has improved following the first US federal rate cut in several years, which has helped drive renewed optimism across equity markets.

International sharemarkets have delivered the strongest results, led by gains in the US and South-East Asia.

Technology and AI-related companies have continued to power performance, offsetting more mixed outcomes in domestic equities and fixed income.

The median growth option rose by 0.9 per cent in September, while the more conservative capital stable option has posted a modest 0.5 per cent return.

SuperRatings said these results highlight the ongoing benefits of diversification, with funds maintaining balanced exposures across risk profiles continuing to generate steady positive outcomes for members.

For accumulation funds to 30 September 2025, the SuperRatings Balanced (60–76) Index has delivered a 10.3 per cent return over one year and 10.8 per cent per annum over three years.

The Growth (77–90) Index has recorded 11.6 per cent over one year and 12.7 per cent per annum over three years, while the Capital Stable (20–40) Index has produced 6.5 per cent and 6.9 per cent, respectively.

The five- and 10-year figures also remain strong, reflecting consistent long-term performance despite market volatility.

Over five years, the balanced option has returned 8.7 per cent per annum and over 10 years, 7.6 per cent.

Pension returns have also ended the month in positive territory, with the median balanced pension option increasing by an estimated 0.9 per cent, with the growth pension option up 1.0 per cent and the capital stable pension option rising 0.6 per cent.

For the year to 30 September, the SuperRatings Pension Balanced (60–76) Index has returned 11.3 per cent, while the Growth (77–90) Index has delivered 12.7 per cent and the Capital Stable (20–40) Index has added 7.2 per cent.

Commenting on the monthly performance, SuperRatings director Kirby Rappell said although international markets performed well over September, Australian shares are “expected to have a dampening effect on overall returns” due to inflationary pressures potentially putting a halt to further rate cuts.

“Over recent years we have seen a shift in super fund investments towards a more equal mix of Australian and international shares, compared to the historically higher Australian shares allocation,” Rappell said.

Rappell added that SuperRatings continues to view the benefits of having a range of asset types, regions, and sectors with a long-term focus.

“For most of us, super is a long-term investment, and we encourage members to formulate and stick to a long-term plan that is suitable for them,” he said.

“Funds provide a range of education, tools and advice that can help members work out a suitable strategy, or members can seek independent financial advice, just make sure to check on and be comfortable with any cost for advice before going ahead.”