23 April 2026
This month, we caught up with the Investment Team at AustralianSuper to discuss what’s driving investment markets.
There are a number of coinciding factors, but the largest has been the ongoing conflict in the Middle East. Market volatility has been driven by concerns about geopolitical instability, oil prices and supply chain disruptions. Additionally, there’s been increased uncertainty around inflation and interest rates, with the cash rate again rising in Australia. Each of these factors could weigh on global growth, so markets have become more volatile as investors price in these new risks. While this has resulted in more unpredictability for investors in recent weeks, it’s important to keep perspective. The CBOE Volatility Index (or VIX), which tracks market volatility, has not yet approached the kinds of levels we saw last April in response to US tariffs.
From an investment perspective, it can be difficult to focus on the long term when there is market volatility. Events like these can have a negative impact on investment returns, which may affect your portfolio or super balance. However, market volatility is a normal part of investing and happens more frequently than you may think. At AustralianSuper, we prepare for situations like these and remain focused on the longer-term return potential of the assets in the portfolio, which are based on underlying cash flows and earnings. Our investment team is continuing to monitor this conflict, along with broader economic and market conditions, to invest for members over the long term.
We’re an active investor and we continue to adapt to changing conditions, managing risk and investing in attractive opportunities to grow members’ super. The duration of this conflict in the Middle East is affecting global supply chains. This is expected to have flow-on effects on interest rates and economic growth. However, pockets of market volatility can also lead to the mispricing of assets and buying opportunities for long-term investors like AustralianSuper. So, we’ll continue to actively manage the portfolio as the situation progresses and capitalise on new opportunities as they arise.
Sponsored by AustralianSuper Pty Ltd, ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
