According to SuperRatings data, the median balanced option posted a return of 1.5 per cent.
The return for the first quarter of 2017 was 2.5 per cent. It could have been higher but it was weighed down by a small negative return in January.
Global markets also generated strong returns on the back of improving economic fundamentals and consistent signs of inflation.
These returns have generally fed back into Australian shares.
But SuperRatings chairman Jeff Bresnahan said it was not all blue skies ahead.
“Overall, the balance of risk appears to be improving, but while investors have every reason to be upbeat, they should not expect clear skies for the rest of the year,” Mr Bresnahan said.
“The main threats to fundamentals come from the interrelated issues of low wage growth and rising house prices, especially in the Melbourne and Sydney markets.
“The RBA has noted that households do not appear to be under stress because of repayments, but we may be due for a correction in these markets.”