Markets jumped on the signing of the big beautiful bill. . Picture: NewsWire \/ Jim WATSON \/ POOL \/ AFP <\/p>\n
Millions of Australians have had their retirement nest eggs jump in value at the start of the new financial year, on the back the markets reacting positively to US President Donald Trump\u2019s key policy and a falling Australian dollar.<\/p>\n
Research released by Chant West shows median superannuation funds that typically hold 61 to 80 per cent in shares and other growth assets were up 2.7 per cent over the first seven weeks of the financial year.<\/p>\n
This comes off the back of a 1.5 per cent jump in July and another boost at the start of August.<\/p>\n
Members in higher growth options outperformed over the month of July.<\/p>\n
All growth funds which have between 96-100 per cent in growth assets jumped 2.2 per cent in July, while high growth options, which are 81-95 exposed, gained 1.8 per cent.<\/p>\n
Conservative options which would have a 21-40 per cent growth assets were up 0.6 per cent in July.<\/p>\n
Markets jumped on the signing of the big beautiful bill. . Picture: NewsWire \/ Jim WATSON \/ POOL \/ AFP <\/p>\n
Head of super investment research at Chant West, Mano Mohankumar, said the growth came mostly in international shares with markets reacting positively to US President Donald Trump\u2019s July announcements.<\/p>\n
\u201cDuring the month, the House of Representatives passed the One Big Beautiful Bill Act (President Trump\u2019s core tax and spending policies), which reduced some policy uncertainty,\u201d he said.<\/p>\n
Mr Mohankumar said markets also reacted positively to quarterly earnings results out of the US.<\/p>\n
\u201cHealthy US corporate earnings results, particularly from most of the mega-cap technology companies, also supported share markets. While geopolitical risks remain, markets largely looked through the ongoing conflict in Ukraine and the Middle East,\u201d he said.<\/p>\n
Mr Mohankumar said the gains could have been even greater as the Australian dollar fell.<\/p>\n
\u201cOver the month of July, developed international shares advanced 2 per cent in hedged terms, but the depreciation of the Australian dollar (down from US$0.65 to US$0.64) pushed up the return in unhedged terms to 3.1 per cent\u201d.<\/p>\n
A falling Australian dollar also helped drive asx returns. Picture: NewsWire \/ Nicholas Eagar <\/p>\n
Investments in emerging markets were also a key driver, up 3.8 per cent in unhedged while local shares jumped 2.4 per cent over the month.<\/p>\n
The jump in Australia\u2019s superannuation follows a \u201cstellar\u201d 10.4 per cent return in 2024\/2025 financial year.<\/p>\n
Even with the strong start to the financial year, Mr Mohankumar urged Australians to look at their superannuation as a long-term asset.<\/p>\n
\u201cSince the introduction of compulsory super in July 1992, the median growth fund has returned 8 per cent p.a.\u201d<\/p>\n
\u201cThe annual CPI increase over the same period is 2.7 per cent, giving a real return of 5.3 per cent, p.a. \u2013 well above the typical 3.5 per cent target.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Markets jumped on the signing of the big beautiful bill. . Picture: NewsWire \/ Jim WATSON \/ POOL…\n","protected":false},"author":2,"featured_media":88278,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,166,99,3335,65854,3333,65856,65857,65858,65855],"class_list":{"0":"post-88277","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-au","9":"tag-australia","10":"tag-australian-dollar","11":"tag-business","12":"tag-chant-west","13":"tag-growth-assets","14":"tag-growth-funds","15":"tag-growth-options","16":"tag-jim-watson","17":"tag-mano-mohankumar","18":"tag-share-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/88277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=88277"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/88277\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/88278"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=88277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=88277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=88277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}