Mike Taylor
Managing Editor and Publisher
18 September 2026
New analysis from Chant West has reinforced the value of superannuation as an investment vehicle, noting that since the introduction of the superannuation guarantee in 1992, the median growth fund has returned 8% well above the consumer price index of 2.7%.
Chant West Head of Superannuation Investment Research, Mano Mohankumar pointed to the long-run performance of superannuation in Australia at the same time as reporting another positive investment performance in August with the median growth fund (61%-80% growth assets) gaining 0.9%.
He said the August result had lifted the return over the first two full months of the current financial year to 1.1%.
Mohankumar pointed to the need for superannuation fund members to view super as a long-term proposition.
“Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target,” he said.
“Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still ahead of the typical objective.”
Dealing with the August investment returns, Mohankumar said it was driven by domestic and global share markets, which in aggregate account for about 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. Markets were supported by strong corporate earnings and the tech sector regained momentum after some AI-related companies had been sold down in July,” he said.
“The Australian dollar appreciated over the month, which pulled the 2.5% hedged return back to 0.5% in unhedged terms. On average, super funds have about 70% of international shares unhedged. Emerging markets also finished higher, returning 1.3%.
“Australian shares gained 1.6% over the month, which fell short of developed international markets, but it was still a solid result, with the resources sector leading the way and offsetting weaker performance from financials. In a volatile month for bond markets, performance was mixed with Australian bonds down 0.2% and international bonds up slightly at 0.2%.”