April saw volatility spike as markets reacted to Trump’s on again, off again, on again tariffs. Despite the turmoil, Australia’s superannuation funds posted a small positive return for April with leading superannuation research house SuperRatings estimating that the median balanced option returned 0.6% to members.
“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” commented Kirby Rappell, Executive Director of SuperRatings. “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. 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.”
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%.
Accumulation returns to 30 April 2025
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR50 Balanced (60-76) Index | 0.6% | 6.0% | 7.8% | 6.3% | 8.2% | 6.5% | 6.4% |
| SR50 Capital Stable (20-40) Index | 0.6% | 5.0% | 6.5% | 4.4% | 4.4% | 3.9% | 4.1% |
| SR50 Growth (77-90) Index | 0.4% | 6.2% | 8.2% | 7.3% | 9.5% | 7.6% | 7.5% |
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.
Pension returns to 30 April 2025
| Monthly | FYTD | 1 yr | 3 yrs (p.a.) | 5 yrs (p.a) | 7 yrs (p.a.) | 10 yrs (p.a.) | |
|---|---|---|---|---|---|---|---|
| SR50 Balanced (60-76) Index | 0.7% | 6.7% | 8.6% | 7.0% | 9.1% | 7.3% | 7.2% |
| SR50 Capital Stable (20-40) Index | 0.8% | 5.6% | 7.1% | 4.9% | 5.0% | 4.4% | 4.7% |
| SR50 Growth (77-90) Index | 0.7% | 7.1% | 9.3% | 8.0% | 10.6% | 8.4% | 8.2% |
This month’s returns highlight the value of diversification across investments that members enjoy through their superannuation. The average balanced option includes approximately 45% of non-share assets allowing funds to reduce losses or even grow retirement balances even 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. 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. 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” concluded Mr Rappell.
Release ends
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For more information contact:
Kirby Rappell
Executive Director
Tel: 1300 826 395
Mob: +61 408 250 725
Kirby.Rappell@superratings.com.au
Require further information? Simply visit www.superratings.com.au.
