Market volatility and your superannuation
26 June 2025Geopolitical tensions and the impact on investments
During periods of crisis – be it geopolitical tensions, a pandemic or other – it is not uncommon to see market volatility in the short-term.
The ongoing conflict between Israel and Iran has led to some volatility in investment markets.
History shows that in times of economic uncertainty, we can expect share markets to be volatile, however, this shouldn’t change your long-term investment strategy, typically 10+ years.
Below is an update from our investment partner Funds SA, about how the current conflict is impacting markets.
Your investments are continually monitored
Funds SA, as the Investment Manager of your superannuation, continuously monitors geopolitical events and global developments to assess their potential impacts on investment options.
This year has seen significant volatility in markets.
President Trump’s trade policies led to a 19% fall in the US S&P 500 Index between 20 February 2025 and 8 April 2025, followed by a 20% rebound to date. Throughout this period, Funds SA maintained its investment strategy and capitalised on opportunities to buy shares at lower prices across some investment options.
More recently, tensions between Israel and Iran have been in focus. While markets have initially reacted with some volatility—oil prices increasing by 7%–10%, share markets falling by 2%, and safe-haven assets like gold and fixed income moving higher—they have quickly stabilised and in some cases, recovered initial losses. Oil prices are closely watched because of their influence on inflation, a key concern for investors and central banks.
Stay focused on the long-term
It’s important to remember that superannuation is a long-term investment, typically 10+ years. Investment options that are managed by Funds SA are diversified investment portfolios, which means that market risk is managed primarily through investing across a range of investments including Australian and international stocks, fixed income, infrastructure, private markets, credit, and alternative assets to make up a balanced portfolio. A well-diversified investment portfolio aims to meet its investment and risk objectives over the long term, despite any short-term market volatility.
Read our article on navigating market volatility for more information.
Find out more about our investment options: Investment objectives and performance.
We recommend that you speak with your financial planner for personalised advice before making a decision about how your super is invested. Learn more about financial planning and advice options.
The information in the article above has been prepared in good faith by Funds SA. However, Funds SA does not warrant the accuracy of the information and to the extent permitted by law, disclaims responsibility for any loss or damage of any nature whatsoever which may be suffered by any person directly or indirectly through relying upon it whether that loss or damage is caused by any fault or negligence of Funds SA or otherwise. The information is not intended to constitute advice and persons should seek professional advice before relying on the information.
The superannuation schemes administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). Super SA is not required to hold an Australian Financial Services Licence to provide general advice about a Super SA product. The information in this publication is of a general nature only and has been prepared without taking into account your objectives, financial situation, or needs. Super SA recommends that before making any decisions about its products you consider the appropriateness of this information in the context of your own objectives, financial situation, and needs, read the Product Disclosure Statement (PDS), and seek financial advice from a licensed financial adviser in relation to your financial position and requirements.