Australia’s major industry superannuation funds have delivered another year of solid investment returns, although most fell short of FY25’s exceptional performance as geopolitical tensions, persistent inflation and market volatility weighed on markets.
UniSuper emerged as one of the strongest performers, with its default Balanced option returning 10.4 per cent for the year to 30 June 2026, outperforming the flagship balanced options of its industry peers.
The fund’s Growth and High Growth options returned 12.3 per cent and 13.1 per cent respectively, while International Shares delivered 17.9 per cent.
Among the remaining major industry funds, Rest’s Growth option returned 9.8 per cent, matching its FY25 result, while HESTA’s MySuper Balanced Growth option returned 9.4 per cent, down from 10.1 per cent a year earlier.
Cbus’ Growth option returned 9.2 per cent, compared with 10.2 per cent in FY25, and Aware Super’s flagship High Growth option delivered 8.54 per cent after returning 11.9 per cent the previous financial year.
International equities again proved the biggest driver of returns across the sector, while private equity, infrastructure and other unlisted assets helped diversified portfolios withstand another year of geopolitical and economic uncertainty.
UniSuper benefits from private market investments
UniSuper said every investment option generated a positive return during FY26, marking another strong year despite market turbulence.
Chief investment officer John Pearce said the fund’s investment in private markets and direct property strengthened portfolio diversification.
“We’re very pleased to deliver these returns despite the market turmoil of the past year. This is the fourth consecutive year that pension members in our Balanced option have enjoyed double digit returns.
“During the year UniSuper made significant investments in high quality assets in private markets and direct property, adding further diversification for our members.”
HESTA adds $10bn to members’ balances
International sharemarkets remained a key driver of HESTA’s performance, helping the fund add around $10 billion collectively to members’ accounts through savings and investment returns during FY26.
The fund said a member invested in its MySuper Balanced Growth option with an average opening balance of $80,000 would likely have received around $7,568 in investment returns over the year, while the option recorded its fourth consecutive year of returns above 9 per cent and has averaged 8.29 per cent annually over the past decade.
Chief investment officer Sonya Sawtell-Rickson said resilient global sharemarkets and the fund’s diversified investment strategy helped deliver strong outcomes despite volatile conditions.
“Our considered, diversified approach helped us deliver a strong financial year result for our more than one million members amid a challenging geopolitical environment,” Sawtell-Rickson said.
“We were able to manage risks in a volatile environment while also acting quickly on new opportunities that emerged as markets moved.
“With persistent inflation and ongoing geopolitical uncertainty likely in the year ahead, we’re staying focused on investments in areas where we see compelling long-term value, including healthcare, housing, climate solutions and artificial intelligence.”
Rest backed by global equities and private markets
Rest said every asset class made a positive contribution during FY26, with international equities, private equity and infrastructure delivering the strongest gains and extending its Growth option’s run to a fourth consecutive year of positive returns.
Chief investment officer Michael Clancy said overseas sharemarkets, particularly in the United States, continued to demonstrate resilience despite persistent inflation and geopolitical uncertainty, while the fund also benefited from strong private market investments.
“I’m pleased we’ve continued to deliver such strong investment returns over the past 12 months for Rest’s more than two million members. The Growth option’s return of 9.81 per cent means a Rest member with $50,000 in their super account would have added around $4,900 in investment earnings to their balance over the year,” Clancy said.
“Markets are being buffeted by short-term cyclical changes, such as oil price movements and interest rate cycles, and long-term structural changes, such as geopolitical forces and step-change AI productivity opportunities and disruptions.”
“The evolving geopolitical landscape and the rise of AI are also increasing the urgency around the energy transition. The supply shocks we’ve experienced in recent years are pushing countries to secure their own energy supply, while AI and data centres are placing increasing demands on existing power systems.”
Aware Super highlights decade-long performance
Aware Super said all of its investment options generated positive returns during FY26, with its flagship High Growth option delivering 8.54 per cent for the year and averaging 9.63 per cent per annum over the past decade.
Head of investment strategy Michael Winchester said the result demonstrated the benefits of remaining invested over the long term, with the fund’s active management and diversified portfolio helping cushion members against market volatility.
“Super is a long-term investment and long-term thinking matters. Our High Growth option has compounded at more than 9 per cent per annum over a decade, or a total investment return of 150 per cent. That is the power of staying the course with a disciplined, diversified strategy,” Winchester said.
“That long-term consistency reflects Aware Super’s investment philosophy: active management, genuine diversification, and a focus on structural themes rather than chasing short-term market momentum.”
Around a quarter of Aware Super’s portfolio was invested in private markets at 30 June 2026, with infrastructure, private equity and unlisted property helping buffer returns during geopolitical volatility, while digital infrastructure, the energy transition and residential property continued to support long-term performance.
Looking ahead, Winchester said artificial intelligence investment and geopolitical risks would remain defining themes for markets.
“AI investment is driving significant capital expenditure across the global economy and we expect it to support productivity growth over the longer term,” Winchester said. “We have been building our exposure to this theme carefully and deliberately through high-quality assets tied to genuine long-term demand.”
Cbus highlights benefits of diversification
Cbus said its diversified investment model continued to provide resilience through another year of global instability, with infrastructure, property, private debt, private equity and emerging markets contributing to member returns.
Chief investment officer Leigh Gavin said remaining invested through market volatility had continued to reward members.
“What we’ve seen during this financial year really echoes the previous one, which was heavily impacted by geopolitical events,” Gavin said. “It has emphasised the importance of staying invested, and really shown the success of our diversified investment model.
“Our ability to invest in real assets across infrastructure, property and private debt, and our long-term approach to investing, anchors the fund amidst increasingly unpredictable global markets.”
