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West Australian
03-07-2025
- Business
- West Australian
Super funds return more than 10 per cent again despite rollercoaster financial year
Retirement nest eggs grew more than 10 per cent in the just-completed 2025 financial year, despite a rollercoaster ride that threatened to leave superannuants underwater just three months ago. Numbers released by superannuation research firm SuperRatings on Thursday show the median balanced fund - one with between 60 per cent and 70 per cent of balances exposed to shares and other growth assets - is estimated to have returned 10.1 per cent in the year to June 30. The growth has been attributed to the big US tech stocks and Australia's banks, notably Commonwealth Bank and represents the third double-digit return for Australian superannuation funds in the past 10 years. It's consistent with the 10 per cent rise in the S&P-ASX200 for the 12 month period. However, returns could have been even better if not for US President Donald Trump's tariffs, which hammered investor confidence and sparked savage sell-offs on global equity markets in the second half. The first seven months of the financial year to 31 January saw super funds delivering an 8 per cent return. However, that had fallen to just 0.8 per cent by early April after the announcement of the 'Liberation Day' levies on US trading partners. 'We saw exceptional volatility in returns over the year, particularly following the announcement of US tariffs in early 2025,' SuperRatings executive director Kirby Rappell said. 'However, the benefit of staying the course was once again proven as a quick rebound has resulted in the third double digit return year over the past decade.' More to come.
The Age
16-05-2025
- Business
- The Age
The top 10 super funds that beat Trump's tariff terror
And funds weighted for greater safety, capital stable funds, equalled balanced funds' monthly 0.6 per cent gain, while their year-long performance was a more muted 6.5 per cent. But the data also reveals the funds that 'Trump-ed' the rest as fear of the potential tariffs took hold – shares fell a confronting 8 per cent-plus from March's top to its close and bottom. Leading the 10 Aussie balanced super funds to shake off the rout most effectively were HostPlus (Balanced), NGS Super (Diversified MySuper) and Australian Food Super (Balanced) – all three managed to contain losses for members to just 1.4 per cent. First Super (Balanced), AMP SuperDirections (Diversified Balanced), Bendigo SmartStart (Balanced Wholesale Fund) and CareSuper (Balanced) kept the month's falls to only 1.5 per cent. And Mercer Super Trust (Mercer Select Growth), MLC MasterKey Business Super (MLC Balanced) and Colonial First State (First Choice – CFS Moderate) preserved all but 1.6 per cent of balances. Those are impressive defensive results; we will learn how these funds fared amid the April low and recovery when the individual fund figures are finalised, shortly. Loading But the thing to realise is that returns could forge higher again this month. Since that April 7 low, the ASX 200 is up more than an astonishing 14 per cent. This is precisely why you don't panic and sell when markets have had a big, extreme reaction to a geopolitical, global medical (yep, the pandemic) or economic event: that initial moment is likely to be the worst time to do so. We are also well above – more than 5 per cent – trading levels just before Liberation Day (still below the high set on February 14 though). Only a portion of that rebound is captured in the latest super data. As of Friday, shares are also on an eight-day winning streak. But it's not over yet… the tariffs are only on pause. And in a further blow to Australia, in the president's sights most recently is film and entertainment, with imports in that industry now in line for 100 per cent tariffs. Investors – and super members – should prepare themselves for ongoing volatility. SuperRating's Kirby Rappell says: '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.' Hear hear.
Sydney Morning Herald
16-05-2025
- Business
- Sydney Morning Herald
The top 10 super funds that beat Trump's tariff terror
And funds weighted for greater safety, capital stable funds, equalled balanced funds' monthly 0.6 per cent gain, while their year-long performance was a more muted 6.5 per cent. But the data also reveals the funds that 'Trump-ed' the rest as fear of the potential tariffs took hold – shares fell a confronting 8 per cent-plus from March's top to its close and bottom. Leading the 10 Aussie balanced super funds to shake off the rout most effectively were HostPlus (Balanced), NGS Super (Diversified MySuper) and Australian Food Super (Balanced) – all three managed to contain losses for members to just 1.4 per cent. First Super (Balanced), AMP SuperDirections (Diversified Balanced), Bendigo SmartStart (Balanced Wholesale Fund) and CareSuper (Balanced) kept the month's falls to only 1.5 per cent. And Mercer Super Trust (Mercer Select Growth), MLC MasterKey Business Super (MLC Balanced) and Colonial First State (First Choice – CFS Moderate) preserved all but 1.6 per cent of balances. Those are impressive defensive results; we will learn how these funds fared amid the April low and recovery when the individual fund figures are finalised, shortly. Loading But the thing to realise is that returns could forge higher again this month. Since that April 7 low, the ASX 200 is up more than an astonishing 14 per cent. This is precisely why you don't panic and sell when markets have had a big, extreme reaction to a geopolitical, global medical (yep, the pandemic) or economic event: that initial moment is likely to be the worst time to do so. We are also well above – more than 5 per cent – trading levels just before Liberation Day (still below the high set on February 14 though). Only a portion of that rebound is captured in the latest super data. As of Friday, shares are also on an eight-day winning streak. But it's not over yet… the tariffs are only on pause. And in a further blow to Australia, in the president's sights most recently is film and entertainment, with imports in that industry now in line for 100 per cent tariffs. Investors – and super members – should prepare themselves for ongoing volatility. SuperRating's Kirby Rappell says: '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.' Hear hear.
News.com.au
12-05-2025
- Business
- News.com.au
One thing Aussies will learn to live with during Trump tariff turmoil
Australian superannuation has surprisingly held up in April, but members are being warned they'll need to put up with wild swings in asset values in the months to come. Figures released by Super Ratings shows the median superannuation funds eked out a small positive return of 0.4 per cent for the month of April. The small gain came despite a wild month, with shares cratering following the US President's sweeping tariff policy, reaching a low on April 7, before rebounding sharply after April 9 when Mr Trump announced a 90 day pause on tariffs. Super Ratings executive director Kirby Rappell warned Australians will need to learn to live with volatility over the next period. '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,' Mr Rappell said. According to Super Ratings 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. In April the Australian sharemarket outperformed its global peers, up 3.6 per cent for the month. But global shares slumped, with the US S & P 500 fell 0.7 per cent and the MSCI World ex-Australian index slumped 1.84 per cent for the month of April in Australian dollar terms. This follows a rough March for members when the median superannuation balance are estimated to have fallen by 1.9 per cent. Despite the volatility, those invested in the median balanced option returns are back to where they were at the start of January and are still up 6 per cent for the financial year to date. Mr Rappell said despite the volatile sharemarket, Australians benefited from diversification across asset classes, with around 45 per cent of money invested in non-share assets. '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' Mr Rappell said. '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.' Mr Rappell warned the markets could remain volatile for a while to come. '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,' Mr Rappell said. '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.' Superannuation members in the pension returns also saw similarly subdued over April, with the median balanced pension option gaining an estimated 0.7 per cent. The median capital stable pension option is estimated to have risen by 0.8 per cent over the month while the median growth pension option is estimated to rise 0.7 per cent for the same period.
Yahoo
12-05-2025
- Business
- Yahoo
Surprising impact of Trump's turmoil
Australian superannuation has surprisingly held up in April, but members are being warned they'll need to put up with wild swings in asset values in the months to come. Figures released by Super Ratings shows the median superannuation funds eked out a small positive return of 0.4 per cent for the month of April. The small gain came despite a wild month, with shares cratering following the US President's sweeping tariff policy, reaching a low on April 7, before rebounding sharply after April 9 when Mr Trump announced a 90 day pause on tariffs. Super Ratings executive director Kirby Rappell warned Australians will need to learn to live with volatility over the next period. '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,' Mr Rappell said. According to Super Ratings 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. In April the Australian sharemarket outperformed its global peers, up 3.6 per cent for the month. But global shares slumped, with the US S & P 500 fell 0.7 per cent and the MSCI World ex-Australian index slumped 1.84 per cent for the month of April in Australian dollar terms. This follows a rough March for members when the median superannuation balance are estimated to have fallen by 1.9 per cent. Despite the volatility, those invested in the median balanced option returns are back to where they were at the start of January and are still up 6 per cent for the financial year to date. Mr Rappell said despite the volatile sharemarket, Australians benefited from diversification across asset classes, with around 45 per cent of money invested in non-share assets. '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' Mr Rappell said. '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.' Mr Rappell warned the markets could remain volatile for a while to come. '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,' Mr Rappell said. '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.' Superannuation members in the pension returns also saw similarly subdued over April, with the median balanced pension option gaining an estimated 0.7 per cent. The median capital stable pension option is estimated to have risen by 0.8 per cent over the month while the median growth pension option is estimated to rise 0.7 per cent for the same period. Sign in to access your portfolio
