Trump has caused wild swings in your super, so how are things right now?
Retirement nest eggs have largely recovered from the hit inflicted by Donald Trump-induced market volatility, with typical superannuation fund returns now back to where they were before the US president's inauguration.
However, experts have warned there is likely to be more volatility ahead for super fund investors, given the high level of uncertainty over the US president's plans and what they may do to the world economy.
Australian superannuation funds were hit hard by the global market mayhem of early April, with funds losing 4.5 per cent in about a week, after Trump spooked investors by unveiling sweeping tariffs.
But a market rally since then has helped to bolster returns from the typical super fund, latest figures from SuperRatings reveal. The research house says most super fund members are on track to make returns of about 6 per cent this financial year, which is close to the long-run objective of many funds.
SuperRatings figures show that despite dramatic swings on markets early in April, when Trump announced the 'Liberation Day' tariffs, the median balanced option super fund ended up returning 0.6 per cent for members in May. The median balanced fund has posted returns of 6 per cent over the financial year to date.
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SuperRatings executive director Kirby Rappell said returns from super funds had been volatile of late, but switching funds in response to the market turmoil last month could have cost members money.
'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,' he 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.
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