Super funds delivered positive returns in May, with leading superannuation research house SuperRatings estimating the median balanced option returned 2.1% to members over the month. This result, which was largely driven by a tech-led rally in international shares, builds on the 2.6% gain observed in April and means that funds have now fully recovered from the -3.2% loss recorded in March after the outbreak of the US-Iran conflict rattled global markets.
“As we approach the end of the financial year, we seem to be getting used to the ups and downs of markets. AI related news and IPO listings are an increasing focus, while the situation around Iran remains somewhat fluid” commented Kirby Rappell, Director of SuperRatings. “This is educating members on how to deal with uncertainty, which has been more subdued in recent years. It is somewhat surreal to see that the median Balanced super fund has delivered a return of 7.9% over the financial year so far and 7.4% per annum over the past decade.”
The median growth option grew by an estimated 2.4% for the month, while the median capital stable option rose by a more modest 1.3%.
Accumulation returns to 31 May 2026
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR Balanced (60-76) Index | 2.1% | 7.9% | 9.5% | 9.4% | 6.9% | 7.3% | 7.4% |
| SR Capital Stable (20-40) Index | 1.3% | 4.9% | 6.0% | 6.2% | 4.1% | 4.3% | 4.4% |
| SR Growth (77-90) Index | 2.4% | 9.0% | 10.6% | 11.0% | 7.9% | 8.8% | 8.7% |
Pension returns also continued their recovery, with the median balanced pension option increasing by an estimated 2.3% in May. The median capital stable pension option is estimated to rise 1.5% over the month, while the median growth pension option is estimated to rise 2.6% for the same period.
Pension returns to 31 May 2026
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SRP Balanced (60-76) Index | 2.3% | 8.9% | 10.6% | 10.6% | 7.5% | 8.2% | 8.3% |
| SRP Capital Stable (20-40) Index | 1.5% | 5.6% | 6.5% | 6.8% | 4.6% | 4.8% | 5.0% |
| SRP Growth (77-90) Index | 2.6% | 9.6% | 11.5% | 12.2% | 8.6% | 9.4% | 9.4% |
With funds now ahead of where they stood before the start of the US-Iran conflict, the pace of the market turnaround is a powerful reminder for members of the benefit of a long-term focus when it comes to their superannuation. Members who switched to Cash or other defensive assets in March would have missed out on the rebound, crystallising losses that have since been fully recovered. Looking ahead, we face continued uncertainty in the Middle East and a number of AI IPO’s coming to market, meaning the path to the end of the financial year is far from certain
“At the end of May, funds are now on track to deliver high single digit returns for the financial year, with more growth-orientated options potentially reaching double-digits if the current momentum holds through June” continued Mr Rappell. “However, as March reminded us, investor sentiment and markets can shift quickly. We encourage members to remember that superannuation is a long-term investment and to speak with their fund or a trusted professional financial advisor before making any changes to their investment strategy.”
Release ends
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For more information contact:
Kirby Rappell
Director of SuperRatings
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
Require further information? Simply visit www.superratings.com.au.
