Quarterly performance update: January-March 2026

Markets had a challenging start to 2026, with global events creating uncertainty and short-term declines across many investments. While this can feel unsettling, it’s important to remember that super is designed for the long term – and your investment strategy is built to navigate periods like this. 

Here’s how our investment options performed from 1 January to 31 March 2026. Current returns for our pension investment option can be viewed here.

Returns are not guaranteed and past performance is not a reliable indicator of future performance.

You can log in to your account at any time to check your investment option and see how your balance is tracking.  

Financial markets entered the year on relatively stable footing, supported by steady growth and easing inflation. However, this changed in March as conflict in the Middle East intensified. 

• Read: Market movements and your super 

Disruptions to global oil supply – particularly through the Strait of Hormuz, a critical shipping route – pushed energy prices sharply higher. This led to increased volatility across global markets, with both share and bond markets declining and many super balances giving back some gains from earlier in the year. 

Higher fuel costs are now flowing through to broader prices and household budgets, contributing to ongoing cost-of-living pressures in Australia and globally. 

As the situation continues to evolve, the global economy is facing a challenging mix of higher prices and slower growth. 

Global uncertainty remains. Key issues – including energy supply routes, broader geopolitical tensions and disruptions to shipping and infrastructure – may take time to normalise. 

This means energy prices, and their flow-on effects to inflation, may remain elevated in the near term. 

Global share markets declined over the quarter, reflecting heightened geopolitical tensions and rising energy costs. 

Different sectors responded in different ways. Energy-related investments benefited from higher oil prices, while many other industries faced increased costs and uncertainty. 

Australian shares also fell during the quarter, with the S&P/ASX 200 declining as global uncertainty weighed on investor confidence. 

At the same time, higher energy prices and inflation pressures are contributing to a more cautious economic outlook. Households are feeling the impact of higher borrowing costs and slower income growth, which is influencing spending behaviour. 

Interest rates continued to rise in Australia, with the Reserve Bank increasing the cash rate to 4.10% during the quarter to 31 March. By early May, it had risen to 4.35%, continuing this upward trend. 

This reflects the ongoing challenge of managing inflation while supporting economic growth. Higher oil prices have added to inflationary pressures, making the path forward more complex. 

Looking ahead, further rate increases remain possible, although the outlook is finely balanced as economic risks continue to evolve. 

Returns varied across asset classes: 

• Shares (equities) declined amid market volatility  

• Bonds also saw small declines as yields rose  

• Infrastructure performed strongly, benefiting from inflation-linked revenues  

• Cash delivered positive returns as interest rates increased  

This is where diversification plays an important role – spreading investments across different asset classes helps manage risk and smooth returns over time. The smartMonday team continue to monitor markets closely and refine our investment approach where needed – always with the aim of supporting your super over the long term. 

Recent market movements have been driven by a sharp rise in oil prices and ongoing geopolitical uncertainty. 

While events like this can impact markets in the short term, they are a regular part of investing in a complex global environment. Encouragingly, the broader economic backdrop remains relatively resilient, with continued growth expected over time. 

Historically, markets have tended to recover as uncertainty begins to ease – particularly when underlying economic conditions remain supportive. 

For members, maintaining a long-term perspective remains key. Reacting to short-term movements can risk locking in losses, while staying invested allows you to benefit from potential recoveries. 

Your super is designed with this in mind – using diversification and a disciplined investment approach to support your retirement outcomes over time. 

It can be tempting to react when markets dip or headlines intensify. But making investment decisions during periods of heightened emotion can sometimes do more harm than good.  

Before making changes to your super, it’s worth taking a step back and considering:  

• Your long-term retirement goals  

• Your time horizon  

• Your comfort with market ups and downs  

If you’re unsure, this is exactly what our smartCoaches are here for. A conversation can help you understand your options and feel confident about your next step.  

If you have questions about your super or your investment options, we’re here to help. 

We’d love to hear from you! 
Call or email 1300 262 241, or smartcoach@smartmonday.com.au. You can also book a time to chat. 

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