investment update - May 2026

As we reflect on the quarter ending 31 March 2026, we share market insights, why keeping calm amid market volatility is important, and HESTA’s investment agility.
 

performance

All Super and Income Stream Ready-Made options have delivered strong returns over the 12 months to 31 March 2026. And importantly, these options have all achieved returns above their long-term 10-year objectives to 31 March 2026¹.
 

Super and Transition to Retirement (TTR)

For Super and Transition to Retirement (TTR) members, our Balanced Growth option returned 7.77% over the 12 months to 31 March 2026².

Balanced Growth option for accumulation and TTR returns to 31 March 2026
 

You can view our Accumulation and TTR our returns on our Super and TTR performance page.

Retirement Income Stream

For Retirement Income Stream (RIS) members, our Balanced Growth option returned 9.39% over the 12 months to 31 March 2026, and our Conservative option returned 6.00% over the same period².
 

Retirement Income Stream Balanced Growth option returns to 31 March 2026
 

Retirement Income Stream Conservative option returns to 31 March 2026
 

Balanced Growth is the default option for HESTA Super, while a blend of Balanced Growth and Conservative is the default strategy for the HESTA Income Stream.

You can view our Income Stream returns on our Income Stream performance page.

market news

Markets at a glance: 1 January–31 March 2026

It was a tale of two halves this last quarter. Markets started the year strongly, concerns about the potential impact of AI on the economy, as well as the conflict in the Middle East led to volatile conditions that offset much of those early gains.

• Shares: Australian shares hit record highs early in the quarter on the back of strong commodity prices and company earnings. That momentum reversed in March when conflict in the Middle East unsettled global markets. Energy stocks were the standout exception, rising as oil prices climbed.
  
  
• Interest Rates & Bonds: The Reserve Bank raised interest rates twice — from 3.6% to 4.1% — in response to renewed inflation concerns. This affected the value of Australian bonds held within your super. Global bond yields also rose on higher inflation expectations.
  
  
• Unlisted Assets: Infrastructure and property returns were modestly positive for the quarter, reflecting steady capital growth, and property income has been stable.
  
  
• Australian Dollar: The Aussie dollar surged to a three-year high in February before falling in March as global uncertainty took hold.

When the world’s markets move like they have this quarter, it’s natural to feel concerned about your investments. However, we’re continuously preparing for change: it’s an expected part of investing.

why keeping calm amid market volatility is important

If the ongoing conflict in the Middle East has you casting a nervous eye over your super balance, you're not alone.  

We unpack what's happening with the markets, what it means for your retirement savings, and why patience tends to pay off in the long run.

Read our market reflections and find out how you can get advice.

managing risk and returns with dynamic asset allocation

You've probably heard that long-term investing and diversification are key to growing your super — and that's true. 

But HESTA's investment team also uses other strategies to help protect and grow your retirement savings across different market conditions. One of these strategies is dynamic asset allocation, or DAA.

What is DAA?

Our DAA process assesses the attractiveness of asset classes on a three-to-five year time horizon, and enables our investment team to actively manage the mix of assets in the portfolio in response to changing market conditions.

How does the team decide what to do?

The investment team analyses key economic signals, like inflation, interest rates, and overall economic growth and asset class valuations. The approach requires ongoing research, monitoring, and rigorous discipline to execute effectively.

What does this mean for you?

HESTA’s experienced investment team is actively managing your super with a long-term view. However, through our DAA program, we aim to make considered adjustments to manage through periods of volatility and changing market environments to help grow and protect your retirement savings over time.

¹ Except Indexed Balanced Growth, which only commenced on 1 October 2020 and has returned 8.90% average annualised return from inception to 31 March 2026.

² Investments may go up or down. Past performance is not a reliable indicator of future performance. Returns are net of investment fees and costs, transaction costs and taxes.