All Rest investment options delivered positive returns, despite periods of market volatility during the September quarter. Gains across global and Australian share markets helped support overall portfolio performance and continued growth in members' retirement savings. All Rest diversified options continue to achieve their investment objectives, helping our members stay ahead of inflation over the longer term.
For the quarter ending 30 September 2026, the Growth option returned 0.83% for Rest Super and the Balanced option returned 0.69% for Rest Pension.
See investment performance for all Rest options
Source: Rest, 30 September 2026. Returns are net of investment fees and tax, except Pension, which is untaxed. The earnings applied to members’ accounts may differ. Investment returns are at the investment option level and are reflected in the unit prices for those options. Returns for periods greater than one year are annualised. Past performance is not an indicator of future performance. Inception dates are 1 July 1988 for Growth (Super) option and 13 September 2002 for the Balanced (Pension) option.
What happened over the quarter?
Global markets were influenced by a combination of higher interest rates, renewed geopolitical tensions and ongoing investment in artificial intelligence (AI). While these factors contributed to periods of market volatility over the quarter, they also highlighted the value of being invested across a broad range of assets, sectors and regions.
In Australia, the economy continued to grow, although at a modest pace. Many households continued to face pressure from higher housing costs and everyday expenses, leading consumers to be more selective about where they spent their money. These conditions shaped both spending patterns and investment markets throughout the quarter and highlight the different economic conditions Australians are experiencing, with growth continuing but household budgets remaining under pressure.
Interest rates remained an important influence on markets over the quarter. Persistent inflation led the Reserve Bank of Australia to raise rates during the quarter. This reinforced expectations that rates may remain higher for some time and pushed government bond yields higher.
Higher interest rates and borrowing costs placed pressure on sectors such as property and infrastructure, which can be more sensitive to the cost of financing. However, higher yields increased the income available from investments such as bonds, cash and credit. Many listed companies continued to deliver resilient earnings over the quarter, helping support broader market performance.
Geopolitical developments also remained in focus. Tensions in the Middle East contributed to higher oil prices, increasing concerns about the potential impact of energy costs on inflation. At the same time, demand for energy remained strong and supported parts of the resources and energy sectors. This helped offset weakness in some interest rate-sensitive sectors and reinforced the benefits of maintaining exposure across a range of industries and investment opportunities.
AI continued to be an important driver of investment interest. As the technology evolves, investors have become more selective, focusing on businesses that are well positioned to benefit from increased AI adoption and those able to translate technological advances into sustainable growth. Continued spending on data centres, computing infrastructure and related technologies remained an important source of demand across global markets.
Overall, markets balanced higher interest rates and ongoing cost of living pressures against continued strength in selected company earnings, AI-related investment and infrastructure spending. This reinforced the importance of diversification and maintaining a long-term investment approach.
Outlook and our approach
Our outlook is for the Australian economy to continue growing, although at a modest pace. Cost of living pressures may keep spending relatively subdued over the coming months for many households. However, continued income and population growth should provide some support.
Interest rates could remain higher for longer than many households and businesses have experienced in recent years. While this can create challenges for some areas of the economy, it can also create opportunities across a broader range of investments, particularly those that benefit from higher income yields. Rather than focusing on the timing of the next interest rate decision, we consider how different economic conditions could affect investments over the long term.
The global outlook remains varied. Investment in AI and infrastructure continues to support growth in several major economies, while energy prices, inflation and geopolitical developments may contribute to periods of short-term market volatility. These periods can be unsettling, but they can also create opportunities for long-term investors.
We continue to focus on businesses and assets that are well placed to adapt, improve productivity and grow over time.
As always, we remain focused on maintaining a diversified portfolio and identifying opportunities that can help deliver strong long-term outcomes for our members.
