The continuing volatility of global share markets is going to be an ongoing concern for super fund members, particularly for those edging retirement, according to Dixon Advisory.
Head of advice, Nerida Cole, said while it’s important to not make “knee jerk reactions” to volatility, members should still look at how their investments are holding up against the environment, and decide which investments they want going forward.
Cole said despite initial positive signals that a ceasefire had been agreed upon between China and the US, global markets have continued to be wary.
“Although the 90-day tariff ceasefire sounds good, the reality of China and the US working through these very complex negotiations within that time frame has hit home and the share markets have had a very tough week,” she said.
Cole said the US’ concerns were broader than trade tariffs, and Australians and their super funds would continue to be affected by volatility next year as the remaining “big picture issues” are yet to be resolved.
“There is still some way to go before a more meaningful and lasting agreement on trade issues can be achieved,” she said. “Recent concerns over the rate of the US interest rate rises have also hit the Australian share market and investors are watching the Federal Reserve very closely.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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