Investment update - 30 September 2026
Snapshot
The September quarter was another reminder that headline market returns can be heavily influenced by a small number of sectors and companies. While artificial intelligence (AI) themed and large technology stocks continued to drive much of the positive momentum in global share markets, higher interest rates, inflation concerns and geopolitical tensions created a more mixed outlook across broader markets.
Investors became increasingly selective, favouring companies with strong balance sheets while businesses with more exposure to higher borrowing costs and inflation pressures faced greater challenges. CareSuper takes a long-term, actively managed approach, responding to changing market conditions such as these, while diversification across asset classes helps reduce the impact of market volatility.
Performance
CareSuper's pre-mixed options remain focused on achieving consistent long-term outcomes through active management and diversification across a broad range of assets, aligned with our goal of providing a smoother ride to members.
All CareSuper Pre-mixed options delivered positive returns over the quarter, with the Balanced (MySuper) option outperforming the median fund, by returning 0.81% from the period 1 July 2026 ending 30 September 2026.1 It was also positive for returns over 10 years, with the option delivering 7.45% over the period.2
For members in the Balanced (Retirement Income) option, it also delivered a positive return of 0.88% over the three months to 30 September 2026.
| Financial year to date | 10 years | ||
| Balanced (MySuper) | 0.81% | 7.45% | |
| SR FCRS Balance (60-76) Index median September 2026 | 0.69% | 7.43% | |
For other time frames and investment options, visit investment performance to learn more.
Market drivers over the quarter
The key themes shaping investment markets were largely unchanged during the September quarter, although the way markets responded to them continued to evolve.
AI remained a major driver of performance during the September quarter, with continued investment in AI technologies supporting company earnings and investor confidence. However, returns were concentrated to a narrow group of US technology companies, highlighting the continued influence of AI on investment sentiment and company earnings.
Economic growth also proved more resilient than many expected across major economies, although conditions in Australia were comparatively softer as households continued to face cost-of-living pressures and higher interest rates.
Optimism was tempered by concerns that inflation may prove more persistent than expected. Rising oil prices linked to tensions in the Middle East, together with resilient economic data, led central banks to act by raising interest rates. During the quarter, both the US Federal Reserve and the Reserve Bank of Australia increased interest rates as they continued efforts to bring inflation lower. These developments contributed to periods of market volatility as investors reassessed the outlook for interest rates and economic growth.
Looking ahead
Economic growth and company earnings continue to support markets. However, higher interest rates, persistent inflation and the strong influence of a small number of large companies may result in markets being more sensitive to setbacks. For many of our members, these economic pressures will feel familiar, with higher interest rates and the rising cost of living continuing to put additional pressure on household budgets.
While these factors can create short-term uncertainty for households and investment markets alike, history has shown that maintaining a long-term perspective is one of the most effective ways to navigate periods of change. CareSuper remains focused on building resilient and diversified portfolios designed to navigate different market environments, with the aim to deliver strong retirement outcomes to members over time.
Market ups and downs are also a normal part of investing. While short-term uncertainty can be unsettling, it’s important to remember that super is designed for the long term. Learn more about navigating market volatility and why staying focused on your long-term goals matters.
At CareSuper our role is supporting you, our members, to achieve confidence in retirement. If market uncertainty is keeping you awake at night, remember we’re here to help. Learn more about our advice options or get in touch with us.
Disclaimers
1 CareSuper’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, June 2026.