Many members switched their investment allocations to more conservative options like cash and term deposits. However, HESTA's data shows that such switching typically coincided with market lows, suggesting that members who moved out of growth funds in early April missed the subsequent market recovery. HESTA’s MySuper Balanced Growth option has risen by 8.0% since the tariff announcement, while the ASX200 index is up 12.7%. In contrast, HESTA’s cash and term deposit options yielded just 1.82% over the same period.
This behaviour mirrors patterns observed during recent global economic events, such as the COVID-19 pandemic and the inflation-related corrections of 2022. HESTA’s CEO, Debby Blakey, emphasised the importance of remaining invested through market fluctuations to achieve strong long-term returns. She cautioned that reacting impulsively to short-term market movements can result in realised losses and missed opportunities for recovery, potentially reducing retirement savings by tens of thousands of dollars.
Blakey advised members experiencing financial anxiety to seek personalised advice tailored to their individual financial situations. Additionally, she stressed the need for ongoing engagement with superannuation, beyond reacting to market fluctuations.
By maintaining a long-term perspective and seeking informed guidance, super fund members can better navigate market volatility and enhance their retirement readiness.
