Delivering strong returns in a year of significant change
Performance
In a year of significant change for investors, the resilience of global share markets and our diversified investment approach meant that the Balanced option outperformed its investment objective and delivered a return broadly in line with the long-term average return. The Balanced option gained 7.73% to the period ending 30 June 2026.
For pension members in the Retirement Income Balanced option, the return was even stronger, at 8.25% for the year. When it comes to your super, it’s long-term performance that matters and all pre-mixed options outperformed their CPI+ % objectives over 10 years to 30 June 2026.
These figures are net investment after fees, costs and taxes. You can view the performance across all our investment options here.
What moved markets in the financial year
Strong gains from several asset classes, including global shares helped to support returns despite the backdrop of higher inflation and rising interest rates linked to geopolitical uncertainty and global events.
The US market continued its strong run, dominated by US technology and AI-linked companies that remain a key contributor to performance, with these sectors also contributing to significant gains in Asia. Taiwan’s share market roughly doubled over the period, while Korea’s KOSPI delivered a 230% (in local currency terms) gain, led by a very narrow group of semiconductor and tech companies. The energy sector also contributed to returns, supported by higher oil prices linked to conflict in the Middle East.
The same tensions contributed to some market volatility in March, however markets quickly recovered losses, returning to near record highs the following month. With peace talks in the Middle East, volatility in oil markets had settled but more recently this picture has changed. By the end of June, oil prices were back to levels seen before the conflict, suggesting markets are less worried about extreme risks with some ongoing disruption expected.
We saw more mixed results in Australia as tax changes, higher inflation and three consecutive interest rate hikes weighed on local market conditions, with the ASX300 returning 6.16% over the financial year. The mining and minerals sector was the standout performer, mainly due to gains in mining shares, while healthcare underperformed, dragged down by earnings downgrades for several companies across the sector.
How our approach navigated markets
Our investment approach is designed to deliver over the long term and provide a ‘smooth ride’ to our members with diversification at its core.
This approach saw our shares, credit, infrastructure and alternatives asset classes all contribute strongly to performance. In particular, the absolute return asset class showcased its defensive qualities during periods when traditional fixed interest lagged.
Fixed interest markets were challenged over the period, with yields for short and long-term duration bonds impacted by inflation concerns. Despite this, our portfolio’s disciplined approach was evident with its outperformance relative to the benchmark over the period.
Looking towards the year ahead
Looking further ahead, the outlook for the year is likely to become more challenging. Consecutive years of exceptionally strong returns from shares are relatively uncommon, which may make it harder for markets to deliver the same level of gains in the near term.
As markets look beyond the initial wave of AI investment, performance is likely to vary more between countries, industries and companies. This may create a more selective environment for investors, where careful stock and sector selection plays a bigger role in identifying long-term opportunities.
The global investment environment is also changing. We expect the year ahead to bring more ups and downs, as supply chains shift, countries focus more on their own economic security, and inflation remains less predictable.
It’s important to remember that inflation can have impacts in two key areas. It increases the cost of living today, but it can also lead to more variability in investment returns, as higher interest rates and uncertainty influence how markets perform.
These changes may result in periods of volatility and increase the importance of diversification, including amongst the more defensive type of investments. Ongoing monitoring and careful portfolio positioning remain important in this landscape.
How we’ve positioned the portfolio
The good news is we’re prepared for changing market conditions and shifts in the forward-looking investment environment. The investment team at CareSuper employs active management, and we’ve steadily built a resilient portfolio with a broader mix of investments designed to perform in different environments. We also use a mix of strategies that helps us remain agile and adapt quickly as markets change.
This includes a stronger focus on areas that cope with somewhat higher inflation like infrastructure as well as investment strategies that aim to deliver returns regardless of market direction. Our goal remains the same. To grow your super over the long-term while managing risk through changing market conditions.
This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you. You may also wish to consult a licensed financial adviser.
Before making a decision about CareSuper, you should consider if this information is right for you and read our Product disclosure statement, Target market determination and Financial services guide. These are available at caresuper.com.au/pds or by calling 1800 005 166. A copy of the Financial services guide for CareSuper is available at caresuper.com.au/fsg.
Past performance isn’t a reliable indicator of future performance. The value of investments can rise or fall, and investment returns can be positive or negative. The figures shown are net investment returns after fees, costs and taxes.
CareSuper Pty Ltd (Trustee) ABN 14 008 650 628, AFSL 238718. CareSuper (Fund) ABN 74 559 365 913. Advice is provided by CareSuper Advice ABN 78 102 167 877, AFSL 284443.
On 1 November 2024, the former CARE Super fund (ABN 98 172 275 725) merged into Spirit Super. Performance prior to 1 November 2024 reflects the corresponding former CARE Super investment options (except the Long-term option (Managed Income only)), not Spirit Super. Spirit Super’s performance history is available here.