Investment update to 31 May 2026
7 July 2026
Global markets deliver another solid month despite slower domestic growth
Investment markets delivered solid returns in May 2026, continuing the recovery seen in April. For members, this meant another positive month across Brighter Super’s diversified investment options.
International shares led the gains, supported by growing investment in artificial intelligence and easing concerns about the Middle East conflict. Returns across other investment markets were more subdued, including Australian shares.
Brighter Super’s diversified investment approach helps provide resilience through changing market conditions and periods of market volatility. While investment markets will continue to move from month to month, we remain focused on managing your super for your long-term retirement outcomes.
The table below shows returns for our diversified investment options for periods ended 31 May 20261.
| Brighter Super investment option |
Returns for periods ended 31 May 2026 (%)1 |
| 1 year |
3 years |
5 years |
7 years |
| Accumulation accounts |
| MySuper |
9.90% |
9.95% |
7.33% |
7.44% |
| Growth |
10.80% |
11.65% |
8.69% |
9.98% |
| Balanced |
8.98% |
10.13% |
7.29% |
8.53% |
| Conservative Balanced |
7.62% |
8.42% |
5.70% |
6.61% |
| Indexed Balanced |
7.93% |
10.70% |
7.68% |
8.26% |
| Stable |
6.13% |
6.71% |
4.17% |
4.80% |
| Secure |
3.40% |
3.98% |
2.60% |
2.58% |
| Pension accounts |
| Growth |
11.68% |
12.86% |
9.65% |
11.13% |
| Balanced |
9.71% |
11.15% |
8.07% |
9.43% |
| Conservative Balanced |
8.32% |
9.39% |
6.30% |
7.35% |
| Indexed Balanced |
8.62% |
11.69% |
8.46% |
8.87% |
| Stable |
6.77% |
7.58% |
4.72% |
5.40% |
| Secure |
3.85% |
4.51% |
2.81% |
2.72% |
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 May 2026
Global developed shares continued to rise in May, as investors looked past ongoing Middle East tensions and focused on the accelerating growth of artificial intelligence (AI). The MSCI World Index (hedged into the Australian dollar) gained 4.9% over the month.
US shares continued to recover from market volatility linked to the Middle East conflict, with the S&P 500 rising 5.3% over the month. Economic data continued to show a resilient labour market, with April payrolls well ahead of expectations. Inflation pressures were also notable, with April headline Consumer Price Index (CPI) accelerating to 3.8% year-on-year, its highest reading since May 2023. With inflation persisting above target, markets now expect the Federal Reserve to keep rates unchanged for the remainder of 2026.
European shares lagged broader developed markets in May. The MSCI Europe Index (in Euros) rose 3.3% over the month. Economic conditions remained subdued, with the European Commission also lowering its 2026 Gross Domestic Product (GDP) growth forecast, due to weaker demand and higher energy costs.
Emerging market shares advanced strongly, supported by continued strength in technology-focused Asian markets. The MSCI Emerging Markets Index (unhedged in AUD) rose 9.6% over the month. South Korean shares rose 37.5%, extending their gains for the year, driven by the country’s large number of AI-related semiconductor and memory-chip manufacturers.
Australian shares rose 1.2% over the month, and underperformed global peers over the previous 12 months. Sector performance was mixed, led by Materials (+10.3%) which was supported by higher iron ore and copper prices. Conversely, Health Care (-8.9%), Utilities (-7.6%), and Energy (-6.0%) were the largest negative sectors. In May, the Reserve Bank of Australia (RBA) delivered its third consecutive 0.25 percentage point rate increase, lifting the cash rate to 4.35%, highlighting inflation as a more significant medium-term risk than the impact of higher interest rates on household spending.
Government bond yields were mixed in May. US 10‑year Treasury yields rose 0.05 percentage points to 4.44%, and there were positive returns for overseas bonds of 0.7%. Australian 10‑year government bond yields fell 0.23 percentage points to 4.84%, and Australian bonds returned 1.6% over the month.
The Australian dollar (AUD) was little changed against the US dollar over May, edging up 0.1% for the month. The AUD continues to be impacted by investor caution caused by global conflicts and a stronger US dollar. However, this was partly offset by the RBA raising interest rates and Australia's strong commodity exports.
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Investment returns are net of investment fees, transaction costs and taxes (where applicable) and gross of administration fees. Past performance is not an indication of future performance.
The information contained is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Brighter Super by calling 1800 444 396, or by emailing info@brightersuper.com.au.
Brighter Super Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for Brighter Super (ABN 23 053 121 564) (RSE R1000160) (the Fund). Brighter Super may refer to the Trustee or the Fund as the context may be. Brighter Super products are issued by the Trustee on behalf of the Fund.
You should obtain and consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decision to acquire any products. A TMD is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at brightersuper.com.au/pds-and-guides
This article provides general advice only and does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial adviser if you require advice which takes into account your personal financial circumstances.
