Important: Superannuation is a long-term investment. Don’t be too concerned about a negative month here or there because on average super funds have been providing positive returns for 27 of the last 32 calendar years.
Watch an animation of fund performance for periods of one month to 15 years over eight years.
See also our super fund monthly performance reckoner.
On again, off again US tariffs created mayhem on global markets in April, but super funds weathered the confusion to post positive returns for the month and the financial year to date.
The median Growth fund (61–80% growth assets) rose 0.6% in April, bringing the return for the first 10 months of the financial year to 5.8%. But it was mighty bumpy along the way.
The unexpected scale of Trump’s tariff announcement early in the month sent shares plummeting. But markets rallied in relief later in the month when Trump paused tariffs and negotiated some reductions.
By month’s end, developed market shares were down just 1.8% hedged and 0.4% unhedged, while Australian shares were up 3.6%. Bonds also provided some cheer, highlighting the importance of diversification, with Australian and global bonds up 1.7% and 0.9% respectively.
Chant West senior investment research manager Mano Mohankumar says: “If you panicked in early April and switched to a lower risk option or cash, not only would you have crystallised your losses, you would have also missed out on the market rebound. That’s why we remind members that super is a long-term investment and encourage them to see a financial adviser if they’re thinking of switching options.”
