Market Fluctuations: Believe in your long‑term strategy

28 January 2022

Financial markets experience volatility

Movements in share markets can leave us concerned about how this might affect our superannuation. The beginning of 2022 has seen increased market fluctuations which can cause some people concern for their superannuation investment strategy. However, it's important to consider superannuation a long-term strategy.

Funds SA, as investment manager of Super SA’s investment options together with their appointed fund managers and specialist advisers, continually monitor financial markets closely and position investment options appropriately.

Investment options remain well diversified

Notwithstanding this short-term volatility, members’ investment options remain well diversified. It has been a strategic objective to build portfolios that have less exposure to share markets, to help safely navigate through turbulent times. Although portfolios are not immune to share market volatility, Super SA’s asset mix including high quality bonds, property, private equity and other unlisted assets, have helped deliver a smoother return profile for members.

 

Focus on the longer term

While it is necessary to remember that investment returns can be volatile in the short-term, an important discipline is to remain focused on the long-term. The best long-term guide to the investment outcomes of Super SA options is their investment objectives. For example, the Triple S Balanced option is targeting a return averaging 3.5 percent above CPI when measured over long-term periods (of at least seven years).

Superannuation is a long-term strategy but with a well-diversified portfolio, investment goals may be achieved with greater certainty. Investment options are structured around return and risk categories. Most options have an asset mix comprising of allocations to listed and unlisted equities (shares) both within Australia and internationally, property and fixed income securities. Performance is dependent on a number of asset classes, not just listed Australian and International equities.

This diversification assists in reducing the volatility of returns. For example, the effect of the share market downturns may be dampened or offset by the returns derived from the allocation to fixed income and property within an investment option.

 

Find out more

To find out more about each investment option, you can see Super SA's website investment section. This includes information about investment objectives and performance.

Seek professional advice

If you’re concerned, it’s important to seek professional financial advice before you make any major changes to your super. There are several ways you can do this:

Make an appointment

If you’d like to make a time to speak with an IFS financial planner, you can book your appointment by calling 1300 162 348. Or learn more about your financial planning advice options.

 

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. 

Fees may apply. Super SA has engaged Industry Fund Services (IFS) (ABN 54 007 016 195 AFSL No. 232514) to facilitate the provision of limited scope and comprehensive financial advice to members of the superannuation schemes administered by Super SA. Advice is provided by financial planners who are Representatives of IFS. Fees may apply. Further information about the services can be found in the relevant IFS Financial Services Guide, a copy of which is available from your IFS financial planner or by calling Super SA on 1300 162 348. IFS is responsible for any advice given by its Representatives. Super SA does not recommend, endorse or accept responsibility for products or services or products provided or recommended by third-party organisations, including IFS. Super SA does not accept liability for any loss or damage caused by the products and services or products provided or recommended by IFS. 

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