Trump effect sees super returns turn negative | Australian Markets

After experiencing a destructive February, how superannuation funds navigate the investment surroundings over the following few months will decide whether or not they end the financial 12 months in optimistic territory, in keeping with SuperRatings.

The SuperRatings knowledge revealed that amid the uncertainties and volatility generated out of the US, month-to-month superannuation fund returns destructive for less than the second time this financial 12 months 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 analysis home mentioned it was clear that indicators of discomfort had been rising as markets digested the looming dangers of tariffs and the results which will end result within the world economic system.

“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 mentioned.

“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 info, SuperRatings govt director, Kirby Rappell famous that regardless of the February end result, funds had delivered round 7% to date this financial 12 months.

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