Trump effect sees super returns turn negative

After experiencing a negative February, how superannuation funds navigate the investment environment over the next few months will determine whether they finish the financial year in positive territory, according to SuperRatings.

The SuperRatings data revealed that amid the uncertainties and volatility generated out of the US, monthly superannuation fund returns negative for only the second time this financial year in February.

SuperRatings is estimated returns from the median balanced investment option fell by minus 0.8% for the month.

In doing so, the specialist superannuation research house said it was clear that signs of discomfort were emerging as markets digested the looming risks of tariffs and the effects that may result in the global economy.

“Despite the Reserve Bank of Australia lowering interest rates in February, both Australian and international share markets, the key drivers of super fund returns, declined over the month as the incoming President’s agenda came into focus,” it said.

“The impact of tariffs on China and potential flow on effects to the Australian economy in particular influenced Australian share expectations, offsetting any potential benefit from the reduction in interest rates.”

“The median growth option fell by an estimated -1.2% over February, while the median capital stable option is estimated to deliver a small but positive 0.1% return to members.”

Commenting on the data, SuperRatings executive director, Kirby Rappell noted that despite the February result, funds had delivered around 7% so far this financial year.

“Provided funds can navigate the next few months well, members are currently on track for a positive return for FY2025,” he said.