Super returns positive despite Trump tariffs

Australian superannuation fund returns have managed to weather US President, Donald Trump’s tariff foray whilst keeping investment returns marginally in the black, according to the latest analysis from SuperRatings.

The SuperRatings analysis of April superannuation investment returns showed that the median balanced option returned a positive 0.6% for April which covered the bulk of the fall-out from Trump’s ‘Liberation Day’ tariff approach.

Commenting on the positive result, SuperRatings executive director, Kirby Rappell acknowledged that there had been a strong response from markets to the US tariff announcements which had resulted in returns bouncing around much more than usual.

“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 said. “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 SuperRatings, the median growth option gained an estimated 0.4% for the month, while the median capital stable option is estimated to have gained 0.6%.

Pension returns were similarly subdued over April, with the median balanced pension option gaining an estimated 0.7%. The median capital stable pension option is estimated to have risen by 0.8% over the month while the median growth pension option is estimated to rise 0.7% for the same period.

SuperRatings said the April returns highlighted the value of diversification across investments with the average balanced option including approximately 45% of non-share assets allowing funds to reduce losses or 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 said.

“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.”