Welcome to the September 2026 edition of the bfg report

Why you need to think about your beneficiary

It’s important you nominate a beneficiary, as this tells your insurer or super fund who you want to receive your benefits in the event of your death.

Making sure your benefits go to the right person

A beneficiary is anyone who receives a payout from your Life Cover policy or superannuation when you die. When you nominate a beneficiary, this advises your insurer or super fund who you’d like to receive your benefits in the event of your death. So, it’s pretty important.

Nominating a beneficiary also makes it easier for your loved ones to access any payout they may be eligible for, which will help them remain financially protected during a difficult time.

Who can I choose to be a beneficiary

Outside super

You can choose anyone – family, friends, your estate, or even a trust.

Inside super

You’re limited to your spouse, children (of any age), financial dependants, someone you have an interdependency relationship with, or legal personal representative. You can learn more in this article about choosing your beneficiaries and how to nominate them.

The importance of having a valid Will

A Will is a legal document that outlines how you want your assets distributed after your death. If you die without a Will, it’s called dying intestate. In that case, your assets will be distributed according to the intestacy laws of your state or territory, which might not reflect your wishes.

This poses some risks, including:

your assets not being distributed according to your wishes
your loved ones having to go through a lengthy and expensive legal process, and
the potential for arguments among your beneficiaries over their claim on your estate.

If you want to avoid these risks, you should consider making a Will with the help of an estate-planning solicitor. It’s a good idea to regularly review your Will to make sure it remains up to date and reflects your wishes.

It’s also important to note that insurers and super fund trustees aren’t obliged to consider your Will when determining death benefit payments. They will consider a non-binding nomination but will follow the instructions of a valid binding nomination.

That’s why nominating a beneficiary is crucial to ensuring your loved ones are protected.

Ensure the right people get your insurance benefit

Life changes; marriage, divorce, children. Review your beneficiary regularly to make sure it is still valid and reflects your wishes.

Market commentary and outlook – August 2026

Summary

Australian small caps had their best August in well over a decade outperforming large caps as market breadth improved.
Global and emerging market equities posted solid US-dollar gains, but a stronger Australian dollar pared back unhedged local-currency returns.
Global bond yields pushed higher across Europe, the UK and Japan on fiscal sustainability and inflation concerns, even as US Treasuries were little changed.
The RBA held rates at 4.35% but remained hawkish.
Australian listed real estate was the weakest major asset class, falling sharply as rising long-term bond yields weighed on valuations. Global infrastructure also lagged.
Oil prices firmed on an uneasy US–Iran standoff, keeping energy markets and inflation expectations on edge.
Gold was the standout asset class, surging as the “dollar debasement” trade returned to the fore following a surprise US Treasury buyback announcement.

Australian Equities

Australian equities delivered modest, but positive returns.

S&P/ASX 200, up 1.5%. Miners and healthcare led the gains, offsetting choppiness in the banks during a busy earnings season. Softer July labour market data raised questions about the pace of economic growth, while a hotter-than-expected inflation print late in the month reinforced the case for a longer pause or even further tightening from the RBA.
Australian small caps, up 5.2% A standout month. The S&P/ASX Small Ordinaries had its best August performance in well over a decade, comfortably outpacing the large-cap benchmark. Improved earnings outcomes, dividend surprises and a rotation away from crowded large-cap positions all supported the move.

Global Equities

Overall, global equities had a positive month, but the appreciation of the AUD kept unhedged returns muted.

US equities recovered during August as investors looked through the July technology correction and refocused on resilient economic growth and solid corporate earnings. The Nasdaq led gains as technology stocks rebounded, while broader participation across sectors supported positive returns from both the S&P 500 and Russell 2000. The month’s performance reinforced the view that the recent weakness in AI-related companies reflected a valuation adjustment rather than a material deterioration in earnings prospects.
European equity markets in local currencies were generally positive during August, supported by attractive valuations, resilient corporate earnings and improving investor sentiment towards non-US markets. Financials, industrials and energy companies performed particularly well, benefiting from stable economic conditions and ongoing demand for cyclical sectors. European markets also attracted flows from investors seeking greater diversification away from US technology stocks.
Japanese equities were among the stronger developed markets, led by a rebound in industrials, healthcare and select technology names.
Emerging markets delivered their strongest August since 2004, up 3.4% in US dollar terms led by a sharp rebound in South Korea and Taiwan as AI-linked chipmakers stabilised, alongside strength in South Africa and Turkey. In AUD terms, after adjusting for the stronger Aussie dollar, the unhedged return was 1.3%.

Fixed Income & Commodities

August was a flat to negative month for most fixed income indices:

Australia: Australian bonds were modestly negative, as the RBA’s hawkish hold and a hotter-than-expected inflation print pushed local yields marginally higher into month-end.
Global: Government bonds were mixed globally. The Bloomberg Global Aggregate Index was roughly flat in hedged terms, as modest gains in US Treasuries were offset by rising long-term yields in Germany, the UK and Japan (all touching multi-year highs on fiscal and inflation concerns). Corporate and high-yield credit outperformed government bonds as spreads tightened.
Oil prices firmed modestly amid an ongoing US–Iran standoff, with Brent crude rising roughly 5% in USD terms, or low-single-digits in AUD terms after the currency adjustment.
Gold surged almost 10% in US dollar terms (silver rose more than 15%) on the back of the resurgent “dollar debasement” narrative following the US Treasury’s buyback announcement focused on long-dated US government bonds and a hawkish-but-uncertain Fed outlook post Jackson Hole; in AUD terms, gold’s gain was still an exceptional +7.5% even after the stronger local dollar.

Property and Infrastructure

Global listed infrastructure. A relatively subdued month for the sector, which lagged the broader equity rally as rate-sensitive, defensive assets found less favour amid rising global bond yields. Performance was uneven across sub-sectors with data centres/towers and utilities more exposed to the higher-yield backdrop than transport-linked infrastructure.
Global listed real estate. A weak month for global REITs as rising long-term bond yields weighed on valuations. Both US and European markets fell during the month.
Australian listed property trusts continued to be impacted by the headwinds of persistently higher official rates and the threat of further increases by the RBA. Australian listed property trusts underperformed their global counterparts.

Outlook and Positioning

Looking ahead, markets face a considerably busier central bank calendar in September, with meetings scheduled for the Bank of Canada, European Central Bank, Federal Reserve, Bank of England, Bank of Japan and the RBA.

The key swing factor for global markets remains the tension between resilient corporate earnings and an AI investment cycle that continues to broaden in its beneficiaries, against a backdrop of persistently elevated government bond yields, expanding fiscal deficits and sticky inflation.

For Australian investors, the RBA’s hawkish hold leaves the door open to further tightening if the recent hot inflation print proves more than a blip, which would be a headwind for local duration-sensitive assets such as A-REITs and small caps even as it could continue to support the Australian dollar.

The unresolved US–Iran standoff also remains a key source of tail risk for energy prices and, by extension, the global inflation outlook. A resolution or further escalation could each meaningfully reshape the macro narrative into year-end.

From a portfolio construction perspective, we continue to favour a balanced approach, maintaining exposure to the broadening equity rally while holding meaningful ballast through high-quality fixed income.

Benchmark returns

Period ended: 31 August 2026

Asset Class	1 Month (%)	3 Months (%)	6 Months (%)	1 Year (%)	3 Years (% pa)	5 Years (% pa)	10 Years (% pa)
Australian Shares
S&P/ASX 100	1.22	4.96	1.00	4.92	11.31	8.29	9.66
S&P/ASX 200	1.54	4.54	0.32	4.40	11.24	7.81	9.36
S&P/ASX Small Ordinaries	5.18	–0.19	-6.31	-1.22	9.77	2.22	6.52
International Shares
MSCI ACWI ex‑Australia (AUD)	0.62	2.20	9.12	11.85	16.57	11.37	13.18
MSCI ACWI ex‑Australia (AUD Hedged)	2.41	2.09	10.00	22.84	19.80	10.64	—
MSCI Emerging Markets AUD	1.30	-0.83	7.45	27.17	19.15	8.61	9.81
Australian Cash & Bonds
Bloomberg AusBond Bank Bill Index	0.38	1.15	2.16	3.99	4.21	3.26	2.24
Bloomberg AusBond Composite Index	-0.22	0.30	0.53	0.57	3.32	-0.13	1.58
International Bonds
Bloomberg Global Aggregate (AUD Hedged)	0.16	-0.35	-1.19	1.79	3.52	-0.39	1.26
Global Listed Infrastructure
FTSE Developed Core Listed Infrastructure 50/50 (AUD Hedged)	-1.95	0.43	-2.23	11.93	12.56	6.63	7.16
Property
S&P/ASX 200 A‑REIT	-6.67	-5.12	-5.81	-15.50	6.85	2.89	4.74
FTSE EPRA Nareit Developed (AUD Hedged)	-3.13	1.00	-1.12	9.63	8.59	0.53	2.86

Source: Morningstar Direct

High interest savings accounts

Financial institution	Interest rate p.a.**	Financial institution	Interest rate p.a.**
Bankwest Easy Saver	5.50%	Move Bank Bonus Saver	5.65%
Rabobank High Interest Savings	5.90%	Judo Bank Personal Savings	5.35%
Ubank Save	5.85%	ING Savings Booster	6.00%

** Maximum advertised variable interest rates. Eligibility criteria, bonus interest requirements and promotional conditions may apply. Rates are subject to change and are believed to be correct as at 24 September 2026.

Disclaimer

This document is prepared by BFG Financial Services (BFG). General Advice Disclaimer: The information in this document is general advice only and does not consider the financial objectives, financial situation or needs of any particular investor. Before acting on this document, you should assess your own circumstances or seek personal advice from us. This report is current as at the date of issue but may be subject to change or be superseded by future publications. The content is current as at the date of issue and may be subject to change. If an investor requires access to other research reports, they should ask their adviser. In some cases, the information has been provided to us by third parties. While it is believed that the information is accurate and reliable, the accuracy of that information is not guaranteed in any way. Past performance is not a reliable indicator of future performance, and it should not be relied on for any investment decision. Whilst care has been taken in preparing the content, no liability is accepted BFG, nor their agents or employees for any errors or omissions in this report, and/or losses or liabilities arising from any reliance on this report. This report is not available for distribution outside Australia and may not be passed on to any third person without the prior written consent of BFG.

The BFG Report – September 2026