UniSuper posts 10.4% return, backs tech

UniSuper reported a 10.4% return for its Balanced option in the year to June 30, 2026, reinforcing the fund’s confidence in the global technology sector despite concerns over certain private‑market valuations.

Performance across asset classes

The $60 billion superannuation fund said its Balanced option delivered 10.4% for accumulation members and 11.2% for pension members, marking the fourth straight year of double‑digit gains. The International Shares option outperformed with a 17.9% return, while Australian Shares contributed 4.7% and Australian Bonds added 1.2%.

Chief investment officer John Peace highlighted that the “global technology boom continued to underpin investment performance,” citing exposure to U.S. equities and semiconductor firms benefiting from artificial‑intelligence infrastructure spending. He noted that Australia’s domestic tech presence is limited, making overseas exposure a key driver.

Selective approach to tech investments

While maintaining an overweight position to technology, the investment team said it has become more selective, steering clear of areas where valuations appear detached from fundamentals. “I am particularly concerned about the valuations I see in some of these private markets, the unlisted assets,” the chief investment officer said.

He pointed to OpenAI and Anthropic as examples of companies that are “losing lots of money without the prospect of making profits for years to come.” As a result, the fund is avoiding direct stakes in data‑centre projects, preferring to capture profits from existing technology exposure while staying constructive on the sector over the medium term.

Australia’s share market, despite lagging behind international equities, remains a valuable diversifier for the fund. The domestic market offers higher dividend yields and greater resilience during technology‑led corrections, according to the investment chief.

Geopolitical developments such as Middle‑East tensions are described as “fluid,” but the fund does not expect them to distract long‑term investors. “What’s important is to block out the noise and focus on the positives in the medium term,” he added.

Compared with earlier cycles, UniSuper’s cautious stance mirrors the broader shift seen in many pension funds that have begun to trim exposure to over‑hyped private‑tech ventures after a period of rapid capital inflows. The pattern suggests a move toward tighter risk controls while still capitalizing on the sector’s growth potential.

The strategy also incorporates environmental, social and governance considerations, aiming to align investments with sustainable outcomes. This focus helps meet member expectations for responsible stewardship.

Risk management protocols have been tightened, with scenario testing applied to both market and credit exposures. Such measures aim to protect member balances against unexpected shocks.

The outlook remains cautiously optimistic.