Pension fund performance: Monthly returns to August 2026

Pension funds posted a solid return in August, with the median Growth fund (61% to 80% growth assets) up 0.9% for the month, taking the return for the first two months of the 2026–27 financial year to 1.2%.

Every risk category was in positive territory over the month, from All Growth funds (96% to 100% growth assets), up 1.1%, to Conservative funds (21% to 40% growth assets), up 0.4%.

Chant West head of superannuation investment research, Mano Mohankumar, says the healthy return for August was driven by domestic and global share markets, which together account for around 55% of a typical Growth portfolio.

“Despite some volatility towards the latter part of August, over the full month developed market international shares advanced 2.5% in hedged terms, led by the US,” Mohankumar says. “Markets were supported by strong corporate earnings, and the tech sector regained momentum after some AI-related companies had been sold down in July.”

A stronger Australian dollar cut that 2.5% hedged gain to 0.5% in unhedged terms, with pension funds holding around 70% of their international shares unhedged on average. Emerging markets also finished higher, returning 1.3%.

“Australian shares gained 1.6% over the month, which fell short of developed international markets but was still a solid result, with the resources sector leading the way and offsetting weaker performance from financials,” Mohankumar says. “In a volatile month for bond markets, performance was mixed, with Australian bonds down 0.2% and international bonds up slightly at 0.2%.”