Super Funds Nervous as Middle East Conflict Impacts Returns

0:00Superannuation funds in Australia are seeing lower returns due to the escalating war in the Middle East. Global share markets have dropped more than 5% since the United States and Israel struck Iran at the end of February. Rising oil prices are adding to the worry about broader economic fallout. Australia's market has fallen for three straight weeks, with futures signaling another 1.8% decline on Monday after a week-wall. Street close. This comes amid heightened uncertainty, though the reaction is milder than last year's tariff driven panic. Members are showing some nerves, with calls to funds about balances and investments up by a third since the conflict intensified. Still, switches to safer options remain steady, as experts warn against knee-jerk moves that can miss out on rebounds. Fund leaders stressed the long-term nature of Super, pointing to diversified holdings by property and infrastructure that weather volatility better. Big players like Australian retirement trust and Hesta are using dips to buy cheaper assets and have scenario plans ready.

1:04While recent dips follow three strong years of double-digit gains for most funds, officials continue monitoring the conflict closely for any shifts in, risk or opportunity. This has been City News Today, powered by AI.