After delivering an impressive 9.5% for the 2025/26 financial year, super funds were initially off to a modest start in FY27 with the median growth fund (61–80% growth assets) up 0.3% in July. However, with share markets posting solid returns in August so far, Chant West estimates the median growth fund is up 1.3% over the first seven weeks of the new financial year.

Chant West Head of Superannuation Investment Research, Mano Mohankumar, says that share markets were mixed during July with significant variation in returns across regions. “Over the month, developed market international shares returned 0.2% in hedged terms, largely due to a flat month from US shares, as the technology sector came under pressure amid concerns about the scale of AI investment and uncertainty surrounding future revenue growth. Due to the appreciation of the Australian dollar over the month, the return in unhedged terms was in the red at -0.9%. On average, super funds have about 70% of international shares unhedged. Emerging markets declined 4.4% where the previously strong performance from the tech sector in South Korea and Taiwan reversed sharply.

“Australian shares, on the other hand, were up a healthy 2.1% over the month supported by the financials and resources sectors, as well as the markets’ relatively low tech and AI-related exposure. Bonds weakened with Australian and international bonds falling 0.4% and 0.9%, respectively, as bond yields rose on renewed inflation concerns.”

The table below compares the median performance to the end of July 2026 for each of the traditional diversified risk categories in Chant West’s Super Fund Performance Survey, ranging from All Growth to Conservative. All risk categories have generally met their typical long-term return objectives, which generally range from CPI + 1.5% for Conservative funds to CPI + 4.25% for All Growth.

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Long-term performance remains above target

MySuper products have been operating for over 12 years, so when considering performance, Mohankumar says it’s important to remember that super is a much longer-term proposition.

“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still ahead of the typical objective.”

The chart below shows that for most of the time, the median growth fund has exceeded its return objective over rolling 10-year periods, which is a commonly used timeframe consistent with the long-term focus of super. The exceptions are two periods between mid-2008 and late-2017, when it fell behind. This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.