Super funds experienced a “significant pullback” in March as a result of US-Iran conflicts causing market volatility.
According to Chant West, the median growth fund (61-80 per cent growth assets) was down 3.2 per cent for the month after the US-Iran conflict and renewed concerns about rising interest rates.
This compared to positive gains of 1.1 per cent in February and 0.4 per cent in January.
The downturn had been flagged by the research house last month but was better than expected as Chat West had initially expected the losses could have been higher at 3.8 per cent.
Chant West head of superannuation investment research, Mano Mohankumar, said: “The experience since the start of March is another clear reminder of why it’s important for super fund members to stay patient and maintain a long‑term perspective.
“Members who panicked after seeing their balances fall in March and switched to lower‑risk options or cash not only crystallised paper losses, but also missed out on the subsequent V‑shaped rebound. Over time, missing out on returns like these can make a significant difference to a member’s balance at retirement due to the power of compounding.”
However, April returns are looking more optimistic with the market already rebounding and the median growth fund up 3.1 per cent so far. That almost entirely offsets the March decline and brings the estimated median return over FY26 up to 6 per cent, with about 10 weeks of the financial year remaining.
