An uneasy US-Iran ceasefire announced in early April helped drive a recovery across global markets, lifting superannuation fund returns after a sharp pullback in March.
SuperRatings estimated the median balanced option rose 2.6 per cent over April, recouping much of the 3.2 per cent decline recorded the previous month.
“Global markets ended April retracing much of the March losses,” said Kirby Rappell, director of SuperRatings.
“The volatility reflects the world in which we are living, with markets hopeful for a sustained solution. However, the situation remains fluid, and its true impact on global inflation and supply chains is still unfolding.
“The Reserve Bank’s decision this week to lift the cash rate by 25 basis points underscores that inflationary pressures persist. For superannuation fund members, it remains a case of staying focused on long-term objectives and trying your best to block out the shorter-term noise.”
Growth-oriented strategies led the rebound, with the median growth option gaining an estimated 3.1 per cent over the month, while the median capital stable option rose 1.3 per cent.
Across the accumulation sector, performance remained resilient over longer periods despite recent volatility.
The SuperRatings balanced (60–76) index returned 5.5 per cent financial year to date and 9.8 per cent over one year to 30 April 2026, alongside annualised returns of 8.6 per cent over three years, 6.7 per cent over five years, 6.9 per cent over seven years and 7.4 per cent over ten years.
More aggressive portfolios continued to outperform over extended horizons, with the growth (77–90) index delivering 6.2 per cent financial year to date and 11.5 per cent over one year.
Annualised returns reached 9.9 per cent over three years, 7.7 per cent over five years, 8.3 per cent over seven years and 8.7 per cent over ten years.
Defensive strategies recorded more modest gains, with the capital stable (20–40) index returning 3.3 per cent financial year to date and 5.6 per cent over one year, with longer-term returns of 5.6 per cent over three years, 4.0 per cent over five years, 4.1 per cent over seven years and 4.4 per cent over ten years.
Pension members experienced a similar recovery profile, with the median balanced pension option rising an estimated 2.7 per cent in April after falling 3.6 per cent in March, while capital stable pension options increased by 1.4 per cent, while growth pension options rose 3.4 per cent over the month.
Over the year to 30 April 2026, the balanced pension index returned 10.7 per cent, with financial year to date returns of 5.9 per cent and annualised outcomes of 9.6 per cent over three years and 8.3 per cent over ten years.
Growth pension options delivered 12.5 per cent over one year and 6.8 per cent financial year to date, with annualised returns of 11.0 per cent over three years and 9.5 per cent over ten years.
Capital stable pension strategies posted 6.3 per cent over one year and 3.8 per cent financial year to date, alongside annualised returns of 6.1 per cent over three years and 5.0 per cent over ten years.
The rapid recovery in April has reinforced the importance of maintaining a long-term investment perspective, particularly as geopolitical risks and inflationary pressures continue to shape market conditions.
“To date, markets seem to be responding strongly to positive news, underscoring the risks that can be associated with switching to cash or other defensive assets in response to periods of negative returns,” Rappel said.
“Members who switch their investment to more defensive options struggle to time their re-entry which can often lead to missing out on the rebound.
“Despite market volatility being likely to persist, and inflation remaining an ongoing concern, super is designed to be a long-term investment. Members should consider reaching out to their fund or a trusted financial advisor to get professional financial advice before proceeding with any change in their investment strategy.”
The near-complete reversal of March losses over April has highlighted the speed at which markets can recover, with members encouraged to carefully consider any changes to their investment strategy, particularly when retirement may still be decades away.
