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Super funds stay the course amid April market swings
Volatile markets driven by shifting US tariff policy failed to rattle Australia's superannuation system in April, with balanced options inching upward.
The superannuation system proved resilient in April, weathering sharp market swings triggered by escalating trade tensions.
According to research house SuperRatings, the median balanced super option returned 0.6 per cent for the month, delivering modest gains despite a rollercoaster month for global equities.
“We saw a strong response from markets to the announcement of tariffs by the US early in the month, which resulted in superannuation returns bouncing around much more than usual,” said Kirby Rappell, executive director of SuperRatings.
“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. 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.”
The median growth option gained an estimated 0.4 per cent for the month, while the median capital stable option is estimated to have gained 0.6 per cent.
Pension returns followed a similar trend in April, with modest gains across the board. The median balanced pension option rose by an estimated 0.7 per cent, while the capital stable option edged slightly higher at 0.8 per cent. The growth pension option also delivered a 0.7 per cent return for the month.
According to SuperRatings, despite recent volatility, super fund returns have recovered to early January levels, with members on track for a solid 6 per cent gain so far this financial year.
"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.
"Setting and sticking to a long-term strategy remains the best approach to achieving long term success and we encourage any member thinking of changing their strategy to seek advice from their fund or a trusted financial adviser,” concluded Rappell.
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