Australian superannuation funds demonstrated resilience during last month's tariff-induced market upheaval.
Newly released data from Chant West shows the median Australian growth superannuation fund returned 0.6% in April.
This brought the financial year-to-date (FYTD) total return (capital growth plus dividends) to 5.8%.
Chant West defines a median growth fund as one with 61% to 80% allocation to growth assets such as international and ASX shares.
How did superannuation funds fare last month?
The US reciprocal tariffs were announced in the US on 2 April and caused an immediate market plunge.
But the rebound was swift after US President Donald Trump announced a 90-day reprieve on the full range of tariffs.
The S&P/ASX 200 Index (ASX: XJO) finished the month 3.6% higher.
Chant West senior investment research manager Mano Mohankumar said US shares underperformed most other regions.
Overall, developed market international shares fell 1.8% in hedged terms and 0.4% in unhedged terms last month.
He said bond markets also contributed positively, with Australian and international bonds returning 1.7% and 0.9%, respectively.
What did the market turmoil teach us?
Mohankumar said last month's drama highlighted the importance of taking a long-term view with superannuation investments.
He cautioned against switching to lower-risk options during short-term market volatility.
Mohankumar said the higher-than-expected and broader-than-expected US tariffs created extreme market volatility worldwide.
He commented:
If you panicked in early April and switched to a lower risk option or cash, not only would you have crystalised 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.
According to the data, 'all growth funds', which allocate 96% to 100% of superannuation monies to growth assets, returned 0.4% in April and 6.6% over the FYTD.
'High growth funds', with 81% to 95% invested in growth assets, returned 0.5% in April and 6.6% over the FYTD.
Balanced superannuation funds, which have 41% to 60% in growth assets and the rest in defensives like cash and bonds, returned 0.6% in April and 5.6% over the FYTD.
Conservative funds, which have a 21% to 40% allocation to growth assets, returned 0.6% in April and 5% over the FYTD.
Currently, all types of Australian superannuation funds are on track to reach their long-term annual return objectives in FY25.
Target returns range from inflation (CPI) plus 1.5% for conservative funds through to CPI plus 4.25% for 'all growth' funds.
