“Astonishing Result”: How Super Funds Are Faring Amid Global Volatility — And What It Means for SMSF Investors

Despite escalating global uncertainty — including the re-emergence of US tariff threats under a potential Trump presidency — Australian super funds are quietly chalking up one of their strongest years on record. According to SuperRatings, the median balanced fund is on track to return a remarkable 9.6% for FY24. For Self Managed Super Fund (SMSF) trustees, the performance of institutional super offers valuable benchmarking — but also a chance to reflect on the benefits of active control, diversification, and a long-term view.

Key Takeaways from the June 2025 Super Fund Update

• Balanced super funds are booming: The average growth is expected to hit 9.6%, driven largely by rebounding equity markets and resilient domestic economic data.

• Performance is up despite global shocks: Volatility sparked by renewed trade war fears, particularly related to China and the US, hasn't derailed returns — a surprising outcome given historical market sensitivities to geopolitical risks.

• Long-term returns remain strong: Over 10 years, balanced funds have delivered an average return of 7.3% p.a., comfortably beating inflation and term deposits.

  
  

Jeff Bresnahan, chairman of SuperRatings, called the latest figures an "astonishing result", especially in light of recent market instability. He noted that “[Funds] have maintained strong asset allocations and benefited from a surprisingly resilient global economy.”

What This Means for SMSF Trustees

If you're running a Self Managed Super Fund, these institutional returns offer a useful reference point — but they don’t tell the full story. Here’s what to keep in mind:

1. Flexibility and Control Still Matter

While big funds are riding the equities rebound, SMSFs offer the unique ability to rebalance in real-time and diversify beyond listed markets — including residential property, direct shares, term deposits and more.

📌 WT Capital Insight: During times of global volatility, many SMSF trustees value the ability to “go defensive” — shifting into tangible assets like property or adjusting exposure to international markets.

2. Diversification Is More Than a Buzzword

Many SMSFs remain overweight in Australian shares or property. While this can work in your favour, especially with franking credits and local property appreciation, it’s crucial to stress-test your portfolio under different market regimes — including interest rate changes and geopolitical shocks.

Consider:

• Adding international ETFs or managed funds

• Reviewing sector exposure across your holdings

• Evaluating alternative assets (e.g., commercial property, private credit)

  
  

3. Use Institutional Performance as a Benchmark — Not a Target

Just because big super funds are achieving nearly 10% returns doesn’t mean every portfolio should aim for that — especially if it comes with volatility or asset classes that don’t match your risk appetite or retirement timeline. SMSF performance should be assessed through your own lens: risk-adjusted returns, tax efficiency, liquidity, and personal goals.

Final Word: Stay Focused on Your Strategy

Global markets will always be unpredictable. From tariff shocks to inflationary pressure and political risk, the key is not trying to time the news cycle — it’s ensuring your super is structured for resilience, growth, and long-term success.

At WT Capital, we help SMSF investors strategically allocate capital — including the use of leveraged property within your super — to create sustainable wealth for retirement.

Want to know how your SMSF strategy compares? Book a free strategy session