Investment Update to 31 August 2026
6 October 2026
A long-term approach through changing markets
Global and Australian share markets delivered positive returns in August, supported by strong company earnings in the US. Government bond yields moved higher, while inflation, the outlook for interest rates and geopolitical developments continued to influence market conditions.
Against this backdrop, Brighter Super’s investment approach remains focused on delivering solid long-term returns for members.
Our four most popular investment options, based on the amounts members have invested – MySuper, Growth, Balanced and Conservative Balanced – each delivered an average annual return above the median of its respective SuperRatings index over the ten years to 31 August 2026¹.
These returns span a decade of changing market conditions, including the COVID-19 pandemic, high inflation, rising interest rates, global trade tensions and conflicts in Ukraine and the Middle East. The results reflect Brighter Super’s diversified, long-term investment approach.
The charts below compare each option’s average annual return for the ten years ended 31 August 2026 with the median of its respective SuperRatings index¹.
How our diversified options performed
The table below shows returns for all of Brighter Super’s diversified investment options for periods ended 31 August 20261.
| Brighter Super investment option |
Returns for periods ended 31 August 2026 (%)1 |
| 1 year |
3 years |
5 years |
7 years |
10 years |
| Accumulation accounts |
| MySuper |
7.69% |
9.74% |
6.85% |
7.27% |
7.69% |
| Growth |
8.30% |
11.00% |
7.58% |
9.65% |
9.79% |
| Balanced |
6.96% |
9.64% |
6.35% |
8.21% |
8.57% |
| Conservative Balanced |
5.95% |
8.12% |
4.95% |
6.35% |
6.65% |
| Indexed Balanced |
5.65% |
10.37% |
6.87% |
7.96% |
- |
| Stable |
4.67% |
6.48% |
3.62% |
4.49% |
4.93% |
| Secure |
2.53% |
3.91% |
2.40% |
2.37% |
2.84% |
| Pension accounts |
| Growth |
9.21% |
12.18% |
8.45% |
10.78% |
10.95% |
| Balanced |
7.61% |
10.60% |
7.04% |
9.09% |
9.50% |
| Conservative Balanced |
6.61% |
9.04% |
5.49% |
7.06% |
7.39% |
| Indexed Balanced |
6.12% |
11.29% |
7.50% |
8.90% |
- |
| Stable |
5.25% |
7.29% |
4.14% |
5.06% |
5.58% |
| Secure |
3.15% |
4.52% |
2.70% |
2.52% |
3.11% |
Our monthly Investment Update focuses on the performance of our diversified options, where most of our members are invested.
Brighter Super offers a range of investment options to suit different goals, timeframes and risk levels. These include ready-made diversified options and single asset class options.
See the latest performance of our full set of investment options.
Looking back: global market trends in August 2026
Share markets rose in August, with the MSCI World Index (hedged to the Australian dollar) returning 2.5% for the month. The gains were supported by strong company earnings, particularly from those linked to artificial intelligence, and the Energy and Materials sectors. Government bond yields also rose as investors considered the possibility of higher interest rates, along with concerns about debt issuance and government deficits. High oil prices and unresolved tensions between the US and Iran remained key risks for markets.
US shares rose in August, with the S&P 500 Index returning 2.7% in local-currency terms. The index reached record highs during the month before easing back towards the end of August. Software companies performed better than semiconductor companies, while gains broadened beyond Technology to include Materials, Energy and Health Care.
Comments from the US Federal Reserve during the month reinforced its commitment to returning inflation back to target. Investors interpreted this as a sign that interest rates could rise. This has since occurred, with the US Federal Reserve raising its target interest rate range to 3.75%–4.00% in September, its first rate rise in three years.
European shares recorded a modest gain in August, with the MSCI Europe Index returning 0.5% in local-currency terms. Inflation across the euro area rose to a preliminary estimate of 3.3% in August, fuelling investor expectations of a rate rise in September.
Emerging market shares rose modestly in August, with the MSCI Emerging Markets Index returning 1.3% (unhedged in Australian dollars). The best-performing markets were those exposed to commodities and metals, including South Africa and parts of Latin America. Asian technology markets also rose, but by less than in previous months.
Australian shares gained 1.6% in August, with performance varying considerably across sectors. The strongest performers were Health Care (+18.1%), Materials (+12.3%) and Utilities (+7.4%) led the market, while the weakest performers were Consumer Discretionary (−7.3%), Property Trusts (−6.6%) and Financials (−5.3%).
The Reserve Bank of Australia held the cash rate at 4.35% in August. Inflation figures for July were higher than expected. Headline inflation, as measured by the Consumer Price Index, eased to 3.5% over the year, while core inflation held steady at 3.6%.
Long-term government bond yields across major markets rose to their highest levels in several years. The yield on US 10-year government bonds increased by 0.04 percentage points to 4.75%, while the Australian 10-year yield rose by 0.14 percentage points to 5.07%. Over the month, Global Fixed Interest returned 0.2% (hedged to the Australian dollar) and Australian Fixed Interest returned −0.2%.
The Australian dollar rose 2.0% against the US dollar in August. The US dollar weakened broadly, with the DXY index, which measures the US dollars against six major currencies, falling 0.5% over the month.
