Fund says US trade tensions were factored into investment strategy early on
As trade tensions and tariff threats continue to influence global markets, AustralianSuper says it remains equipped to manage any resulting volatility.
Chief investment officer Mark Delaney addressed the issue during the Asia Pacific Financial and Innovation Symposium in Melbourne on Tuesday, noting that recent market reactions to US trade policy under US President Donald Trump had been largely anticipated by the fund.
“Last year, some of our team wrote a paper saying that they thought the first six months of the Trump presidency was likely to introduce considerable volatility. It’s turned out exactly that way,” Delaney said.
AustralianSuper is part of Australia’s $4.2 trillion superannuation industry. The sector has been increasing its exposure to offshore investments, with around a third of assets now held in global equities. That international focus delivered strong returns of 11.5% last year, but funds saw an average decline of 0.8% in February amid renewed concerns over tariffs, according to SuperRatings.
Delaney said that while volatility has affected short-term performance, underlying conditions remain stable: “That volatility has been within the context of a pretty solid underlying economic backdrop: So the ability to absorb it is quite substantial. Looking forward, you wouldn’t expect the volatility to go away.”
His comments come shortly after a series of meetings in the United States between AustralianSuper and senior members of the Trump administration, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, as well as state governors and investment managers.
