Superannuation savings are looking at another strong annual return, despite the damage inflicted on Australian shares by the Middle East war.
With one ASX trading day of the 2026 financial year remaining, the country’s leading share barometer, the S&P-ASX200, is up just 3.6 per cent for the past 12 months, including a gain of only 1.1 per cent gain in the second half.
That’s well down on the previous year’s 10 per cent growth and the 7 per cent gain in 2024.
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However, the median superannuation growth fund is still expected to return as much as 10 per cent for the past 12 months thanks to the rising value of international shares held in their portfolios.
Offshore shares, particularly those of the big US tech firms, have traded at record highs off the back of bumper earnings and the investor frenzy around Artificial Intelligence and data centres.
The S&P500 index, which comprises the 500 biggest companies in the US, has leapt 20 per cent over the past year, while the tech-heavy NASDAQ Composite index is up 24 per cent. London’s FTSE index has gained 19 per cent.
Global share markets were hammered lower by the first US and Israeli attacks on Iran at the end of February but have been quicker to recover than the S&P-ASX200.
The barometer is still down 4 per cent from its pre-war peak, despite a stronger financial year by mining shares off the back of better prices for the likes of lithium, copper and gold.
The Australian dollar has had a rollercoaster six months, hitting a four-year high above US72.6¢ last month before retreating back under US70¢ to trade at just US69¢ late on Monday.
