Investment update - period 1 January to 31 March 2026
While March proved a challenging month for markets, April is telling a very different story. A strong rebound during the month has brought investment returns back to near financial year to date (FYTD) highs. This performance suggests that investors remain positive even as uncertainty across the global landscape continues. Overall, the quarter showed encouraging resilience, even as challenges remain.
Performance
After a strong start to the March quarter, escalating tensions in the Middle East and ongoing news coverage continued to influence markets, with the Balanced (MySuper) option declining 2.80% over the month of March.
Looking over the financial year from the period beginning 1 July 2025, CareSuper’s Pre-mixed investment options generated positive and consistent performance, with the Balanced option delivering 2.29% to the period ending 31 March 2026.1
For other time frames and investment options, see investment performance to learn more.
All pre-mixed options continue to deliver positive FYTD returns, supported by solid performance from defensive asset classes like alternatives. These asset classes are designed to perform differently to traditional asset classes, with absolute return an alternative to fixed interest when bond yields are rising, helping to deliver a smoother ride to members during uncertain times. Consistent with this approach, our performance compared favourably with peers, with the industry median falling 3.22% over the same period.2
We expect periods of volatility from time to time, but design our options to operate in different environments. We encourage members to remember that super is a long-term investment and be patient through the ups and downs, knowing our strategy is active and focuses on resilience and diversification. Please visit our website to learn more about navigating market volatility.
Market drivers over the quarter
Global share markets started 2026 on solid ground with several markets delivering near-record highs. This positive trend, however, started to reverse by the start of March following the escalated conflict between the US and Iran.
Global share and bond markets both fell as concerns grew that higher energy prices could push up inflation and slow economic growth. Oil prices spiked from $60 to peak at $110 in mid-March on worries that the Strait of Hormuz, through which 20% of global oil supply flows, would be shut for an extended period.
Global shares declined reflecting weaker investor sentiment across most regions, while bonds fell alongside shares as investors reassessed how higher oil prices will impact interest rates – fearing that they may stay higher, for longer.
In Australia, already experiencing elevated inflation, 10-year bond yields spiked as investors moved to price in additional interest rate hikes following the RBA lifting the cash rate at its February and March meetings.
Europe and some emerging markets were particularly affected by energy supply disruptions, while share markets in Australia and the US gave back earlier gains from the quarter.
While markets continue to navigate uncertainty, it’s important to note that the quarter’s overall decline was relatively contained given the scale of global disruption caused by the conflict.
You can find out more about what these global events mean for your super in our March Fund update.
Looking ahead
The 2025-2026 financial year has so far delivered a wide range of conditions for us to navigate. As we enter the final quarter, April’s strong rebound is promising however with broader geopolitical uncertainty ongoing, we expect some volatility to continue.
At CareSuper our role is supporting you, our members, in achieving your retirement goals. So, if market volatility is keeping you awake at night, please get in contact with us.
Disclaimers
1CareSuper’s performance figures shown are net of fees, cost and investment related taxes and have been rounded to two decimal places. 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.
2 SuperRatings Fund Crediting Rate Survey SR50 Balanced (60-76) Index, March 2026.