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The Age
16-05-2025
- Business
- The Age
The top 10 super funds that beat Trump's tariff terror
And funds weighted for greater safety, capital stable funds, equalled balanced funds' monthly 0.6 per cent gain, while their year-long performance was a more muted 6.5 per cent. But the data also reveals the funds that 'Trump-ed' the rest as fear of the potential tariffs took hold – shares fell a confronting 8 per cent-plus from March's top to its close and bottom. Leading the 10 Aussie balanced super funds to shake off the rout most effectively were HostPlus (Balanced), NGS Super (Diversified MySuper) and Australian Food Super (Balanced) – all three managed to contain losses for members to just 1.4 per cent. First Super (Balanced), AMP SuperDirections (Diversified Balanced), Bendigo SmartStart (Balanced Wholesale Fund) and CareSuper (Balanced) kept the month's falls to only 1.5 per cent. And Mercer Super Trust (Mercer Select Growth), MLC MasterKey Business Super (MLC Balanced) and Colonial First State (First Choice – CFS Moderate) preserved all but 1.6 per cent of balances. Those are impressive defensive results; we will learn how these funds fared amid the April low and recovery when the individual fund figures are finalised, shortly. Loading But the thing to realise is that returns could forge higher again this month. Since that April 7 low, the ASX 200 is up more than an astonishing 14 per cent. This is precisely why you don't panic and sell when markets have had a big, extreme reaction to a geopolitical, global medical (yep, the pandemic) or economic event: that initial moment is likely to be the worst time to do so. We are also well above – more than 5 per cent – trading levels just before Liberation Day (still below the high set on February 14 though). Only a portion of that rebound is captured in the latest super data. As of Friday, shares are also on an eight-day winning streak. But it's not over yet… the tariffs are only on pause. And in a further blow to Australia, in the president's sights most recently is film and entertainment, with imports in that industry now in line for 100 per cent tariffs. Investors – and super members – should prepare themselves for ongoing volatility. SuperRating's Kirby Rappell says: '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.' Hear hear.
Sydney Morning Herald
16-05-2025
- Business
- Sydney Morning Herald
The top 10 super funds that beat Trump's tariff terror
And funds weighted for greater safety, capital stable funds, equalled balanced funds' monthly 0.6 per cent gain, while their year-long performance was a more muted 6.5 per cent. But the data also reveals the funds that 'Trump-ed' the rest as fear of the potential tariffs took hold – shares fell a confronting 8 per cent-plus from March's top to its close and bottom. Leading the 10 Aussie balanced super funds to shake off the rout most effectively were HostPlus (Balanced), NGS Super (Diversified MySuper) and Australian Food Super (Balanced) – all three managed to contain losses for members to just 1.4 per cent. First Super (Balanced), AMP SuperDirections (Diversified Balanced), Bendigo SmartStart (Balanced Wholesale Fund) and CareSuper (Balanced) kept the month's falls to only 1.5 per cent. And Mercer Super Trust (Mercer Select Growth), MLC MasterKey Business Super (MLC Balanced) and Colonial First State (First Choice – CFS Moderate) preserved all but 1.6 per cent of balances. Those are impressive defensive results; we will learn how these funds fared amid the April low and recovery when the individual fund figures are finalised, shortly. Loading But the thing to realise is that returns could forge higher again this month. Since that April 7 low, the ASX 200 is up more than an astonishing 14 per cent. This is precisely why you don't panic and sell when markets have had a big, extreme reaction to a geopolitical, global medical (yep, the pandemic) or economic event: that initial moment is likely to be the worst time to do so. We are also well above – more than 5 per cent – trading levels just before Liberation Day (still below the high set on February 14 though). Only a portion of that rebound is captured in the latest super data. As of Friday, shares are also on an eight-day winning streak. But it's not over yet… the tariffs are only on pause. And in a further blow to Australia, in the president's sights most recently is film and entertainment, with imports in that industry now in line for 100 per cent tariffs. Investors – and super members – should prepare themselves for ongoing volatility. SuperRating's Kirby Rappell says: '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.' Hear hear.
News.com.au
12-05-2025
- Business
- News.com.au
One thing Aussies will learn to live with during Trump tariff turmoil
Australian superannuation has surprisingly held up in April, but members are being warned they'll need to put up with wild swings in asset values in the months to come. Figures released by Super Ratings shows the median superannuation funds eked out a small positive return of 0.4 per cent for the month of April. The small gain came despite a wild month, with shares cratering following the US President's sweeping tariff policy, reaching a low on April 7, before rebounding sharply after April 9 when Mr Trump announced a 90 day pause on tariffs. Super Ratings executive director Kirby Rappell warned Australians will need to learn to live with volatility over the next period. '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,' Mr Rappell said. According to Super Ratings the median growth option gained an estimated 0.4 per cent for the month, while the median capital stable option is estimated to have gained 0.6 per cent. In April the Australian sharemarket outperformed its global peers, up 3.6 per cent for the month. But global shares slumped, with the US S & P 500 fell 0.7 per cent and the MSCI World ex-Australian index slumped 1.84 per cent for the month of April in Australian dollar terms. This follows a rough March for members when the median superannuation balance are estimated to have fallen by 1.9 per cent. Despite the volatility, those invested in the median balanced option returns are back to where they were at the start of January and are still up 6 per cent for the financial year to date. Mr Rappell said despite the volatile sharemarket, Australians benefited from diversification across asset classes, with around 45 per cent of money invested in non-share assets. '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' Mr Rappell 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.' Mr Rappell warned the markets could remain volatile for a while to come. '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,' Mr Rappell said. '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.' Superannuation members in the pension returns also saw similarly subdued over April, with the median balanced pension option gaining an estimated 0.7 per cent. The median capital stable pension option is estimated to have risen by 0.8 per cent over the month while the median growth pension option is estimated to rise 0.7 per cent for the same period.
Yahoo
12-05-2025
- Business
- Yahoo
Surprising impact of Trump's turmoil
Australian superannuation has surprisingly held up in April, but members are being warned they'll need to put up with wild swings in asset values in the months to come. Figures released by Super Ratings shows the median superannuation funds eked out a small positive return of 0.4 per cent for the month of April. The small gain came despite a wild month, with shares cratering following the US President's sweeping tariff policy, reaching a low on April 7, before rebounding sharply after April 9 when Mr Trump announced a 90 day pause on tariffs. Super Ratings executive director Kirby Rappell warned Australians will need to learn to live with volatility over the next period. '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,' Mr Rappell said. According to Super Ratings the median growth option gained an estimated 0.4 per cent for the month, while the median capital stable option is estimated to have gained 0.6 per cent. In April the Australian sharemarket outperformed its global peers, up 3.6 per cent for the month. But global shares slumped, with the US S & P 500 fell 0.7 per cent and the MSCI World ex-Australian index slumped 1.84 per cent for the month of April in Australian dollar terms. This follows a rough March for members when the median superannuation balance are estimated to have fallen by 1.9 per cent. Despite the volatility, those invested in the median balanced option returns are back to where they were at the start of January and are still up 6 per cent for the financial year to date. Mr Rappell said despite the volatile sharemarket, Australians benefited from diversification across asset classes, with around 45 per cent of money invested in non-share assets. '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' Mr Rappell 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.' Mr Rappell warned the markets could remain volatile for a while to come. '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,' Mr Rappell said. '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.' Superannuation members in the pension returns also saw similarly subdued over April, with the median balanced pension option gaining an estimated 0.7 per cent. The median capital stable pension option is estimated to have risen by 0.8 per cent over the month while the median growth pension option is estimated to rise 0.7 per cent for the same period. Sign in to access your portfolio
Daily Mail
07-05-2025
- Business
- Daily Mail
How much superannuation you should have?
Australians approaching 60 have insufficient super to retire comfortably as Donald Trump 's trade wars diminish retirement savings. SuperRatings executive director Kirby Rappell said Trump's tariffs had hit super balances, by causing volatility on share markets, making those approaching 60 reconsider their retirement plans. 'The volatility's back, that is causing anxiety for people,' he told Daily Mail Australia. 'That does make people worry about what retirement's going to look like.' How much super is enough to retire? The oldest Generation X workers, turning 60 this year, can access their superannuation and would need $453,000 for a comfortable retirement - based on going on an overseas holiday every seven years. But men aged 55 to 59 only have $301,922 on average, compared with $228,259 for women, Association of Superannuation Funds of Australia data showed. Why is share market volatility a problem? Share market volatility is particularly concerning for those wanting to retire soon and live off their super before they qualify for the age pension at 67. While superannuation balances have bounced back, since Trump announced a 90-day pause on reciprocal tariffs, growth-orientated retirement savings are still typically below where there were in February when the share market peaked. Those worried about the share market are urged not to panic with balanced funds delivering average returns of 6.7 per cent during the past decade. 'The positive is returns have held up not too bad if you look over the long term,' Mr Rappell said. 'The reality is there is going to be more ups and downs. 'For most people, it's trying to figure out what they need to do for the long term and try and just block out all the noise to stay sane given it's just a more uncertain period that we're in.' How much should I have in my super account at my age? Those turning 50 this year need $281,000 in super but those in their late forties are falling short, with average super balances of $180,958 for men and $136,667 for women. Millennials turning 40 need $156,000 but men in their late thirties only typically had $90,822 compared with $71,686 for women. By age 67 - when someone can get the age pension - it's recommended they have $595,000 in retirement savings. Someone in this situation, who has paid off their home, would be able to take an overseas holiday every seven years or go someone within Australia annually. Despite the recent turmoil on share markets, Mr Rappell said growth-orientated super products with a higher exposure to shares were much more likely to deliver stronger returns, compared superannuation funds geared towards cash. 'It's unlikely going to get where you want to be in retirement just taking cash,' he said. How can you live off super? From age 60, Australians can draw down on their super or take out a lump sum to pay off their mortgage or outstanding personal loans. From 67, super can be combined with the age pension. 'If you have got enough super, you should talk to your fund to understand how they can let you take out the money in chunks so you can get a couple of hundred bucks a week on top of your pension,' Mr Rappell said. Those approaching retirement can have their savings in both an accumulation account, geared towards higher returns, and a retirement account they live off. During the accumulation phase of super, workers pay a 15 per cent tax on earnings. But after someone turns 60 and stops working, their super earnings are tax-free for retirement savings of up to $1.9million 'At some point, they can draw down in an income stream from their super and leave it in their super fund and still get the returns on it and no tax on earnings,' Mr Rappell said. 'You don't have to take the money out and put it under your bed; you can actually get the benefit of navigating investment markets.' Compulsory employer super contributions are rising to 12 per cent on July 1, up from 11.5 per cent now. Individuals wanting to make voluntary contributions on top of that are taxed at a concessional rate of 15 per cent, which is well below the marginal tax rate for incomes above $18,200.
