7 April 2026
Around one year after the market shock caused by US tariff announcements, HESTA is urging its more than one million members to stay focused on their long-term retirement goals as global markets experience heightened volatility in response to escalating Middle East tensions.
Following the start of the Iran conflict, the super fund has seen a rise in average daily investment switching activity in March from the previous month,[i] while the number of visits to HESTA’s investment pages has risen sharply.
Switching activity peaked on March 9 when oil prices jumped through US$110 per barrel and the ASX200 fell 2.8% in its worst day since US trade tariffs were announced in April 2025. Daily switching numbers have since eased but remain above typical levels.[ii] Members who have switched investments options have predominantly moved their retirement savings into very defensive options, such as Cash and Term Deposits.
Amid the more challenging market conditions, the number of visits to HESTA’s investment landing page via online accounts climbed nearly 37% in March 2026.[iii] HESTA is providing regular updates to members on its website based on the current situation.
HESTA CEO Debby Blakey said it was natural to feel concerned during periods of market uncertainty, however making snap decisions based on short-term market fluctuations could harm retirement outcomes in the long run.
“We understand news of the conflict in Iran and the impact on global markets can feel unsettling, but history shows staying invested through market ups and downs typically delivers stronger long-term returns for our members,” Ms Blakey said.
“Super is a long-term investment. While it’s important to stay informed, knee-jerk reactions to short-term market movements can crystallise losses and risk missing out on a market bounce back. This could potentially cost tens of thousands of dollars at retirement.
“The best thing to do if you’re feeling anxious about your super is to seek advice tailored to your individual circumstances, which also takes account of how close you are – or if you are in – retirement. Engaging with your super regularly, not just during periods of market volatility, can also help build confidence in your investment strategy and ability to stay the course.”
A HESTA member survey conducted in September 2025 found 43% would be more likely to monitor their super balance during volatile market periods.[iv]
Separately, the Fund’s analysis of historical data revealed the potential risks of switching to more conservative options during a correction.
If a member with a $100,000 balance switched from the most popular option, the default MySuper Balanced Growth, to the most defensive Cash & Term Deposits option during COVID in 2020, just five years later they could be more than $20,000 worse off in terms of potential retirement savings. This figure assumes they took one year to switch back.[v] [vi]
Ms Blakey said the team began the year with a cautious outlook, noting the Fund’s well-diversified portfolio was built for resilience during periods of market volatility.
“We actively manage members’ savings and our well-diversified core portfolio is built to weather periods of significant volatility,” Ms Blakey said.
“Our highly experienced and skilled investment team is closely monitoring developments and updating scenario planning to help ensure our ongoing activities manage emerging risks and take advantage of new opportunities.”
HESTA’s Balanced Growth investment option, the Fund’s MySuper default super option and where most HESTA members are invested, has delivered strong returns over the short and long term. It has returned 7.77% over the past year and an average of 7.89% per annum over the past 10 years, both to 31 March 2026.
HESTA provides regular updates to members during periods of market volatility. The Fund also offers members easy access to advice about their super at no additional cost.
Ends.
This information is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this.
All returns are net of investment fees and costs, transaction costs and taxes. Past performance is not a reliable indicator of future performance. For the latest information on the performance of HESTA’s investment options, visit hesta.com.au/members/investments.
[i] Average number of daily investment switching requests for March 2026 compared to February 2026.
[ii] As at 31 March 2026.
[iii] Number of visits to HESTA investment landing page via online accounts for March 2026 compared to February 2026.
[iv] Based on responses of 599 HESTA members – survey conducted in September 2025.
[v] Calculations are performed on a fixed value over the stated date range and do not take into consideration any member transactions (contributions/draw down benefits) or deductions (administration/insurance) or other entitlements (LISTO, Co-Contributions). Returns are based on historical crediting rates and unit prices. Previously named Core Pool. Rounding has been applied to the graph to the nearest dollar. Annualised returns are net of investment fees and costs, transaction costs and taxes. Past performance is not a reliable indicator of future performance.
[vi] Figure determined based on switching from Balanced Growth to Cash & Term Deposits on 30 June 2020, then switching back on 30 June 2021 and holding until 30 June 2025. Compared to staying invested in Balanced growth the entire five years. Figure would be even higher if switched at peak of COVID market falls in March 2020.