Super returns positive despite Trump tariffs | Australian Markets

Australian superannuation fund returns have managed to climate US President, Donald Trump’s tariff foray while conserving investment returns marginally within the black, in response to the latest evaluation from SuperRankings.

The SuperRankings evaluation of April superannuation investment returns confirmed that the median balanced option returned a positive 0.6% for April which lined the majority of the fall-out from Trump’s ‘Liberation Day’ tariff method.

Commenting on the positive end result, SuperRankings govt director, Kirby Rappell acknowledged that there had been a robust response from markets to the US tariff bulletins which had resulted in returns bouncing round a lot more than ordinary.

“Importantly, the large declines seen at the beginning of the month were quickly regained as tariffs were paused, reinforcing the difficulty of timing the market,” he stated. “Members that panicked and switched options or withdrew funds may have missed out on this rebound and we continue to encourage a long-term mindset around superannuation. We believe members are going to need to learn to live with volatility for the next period.”

According to SuperRankings, the median growth option gained an estimated 0.4% for the month, whereas the median capital secure option is estimated to have gained 0.6%.

Pension returns had been equally subdued over April, with the median balanced pension option gaining an estimated 0.7%. The median capital secure pension option is estimated to have risen by 0.8% over the month whereas the median growth pension option is estimated to rise 0.7% for a similar period.

SuperRankings stated the April returns highlighted the worth of diversification throughout investments with the average balanced option together with roughly 45% of non-share property permitting funds to cut back losses and even grow retirement balances when share markets are down.

“Returns are now back to where they were at the start of January, so after four months of ups and downs most members are still looking at a 6% return for the financial year to date,” Rappell stated.

“Despite the pause on tariffs, we continue to believe there will be ups and downs over the coming months, however funds have consistently demonstrated their ability to navigate changing markets and provide strong long-term outcomes for members.”