Pension fund performance to June 2026

Despite tensions in the Middle East and lingering inflation concerns, superannuation pension funds continued their strong run in the year to June 2026, with the median pension Growth fund (61-80% growth assets) up 10.8%.

Once again, shares were the main driver of the result, with international shares delivering strong gains despite a stronger Australian dollar.

International shares returned 25.5% on a currency-hedged basis, and a still-solid 17% unhedged. Australian shares returned a more modest 6.2%.

Chant West’s Head of Superannuation Investment Research, Mano Mohankumar says Growth funds, on average, have 31% of their total investments in international shares and a further 24% in Australian shares.

Despite ongoing geopolitical tension and a difficult investment environment, almost every major asset class produced a positive return over the year. Traditional defensive assets also held up, with cash returning 3.9%, Australian bonds 1.5% and international bonds 2.9%.

Australian listed property was the only asset class to finish in negative territory, down 1.8%, while international listed property and listed infrastructure returned 14.3% and 17.2% respectively.

Final returns for unlisted assets are still being calculated. Chant West expects unlisted infrastructure to return 7% to 9% and private equity 8% to 11%, while unlisted property is expected to post a return of 5% to 7% as its recovery continues.

As a result, even the most conservative investment option (21-40% growth assets) returned 6.5% in the year to June, although higher-risk options were the main beneficiaries of buoyant share markets.

At this rate, most retirees will have seen their pension account balance grow over the year even after withdrawing their minimum pension amount.