POWERED BY MOMENTUM MEDIA
Super members need long-term view
Superannuation fund members need to stop worrying over their current account balances and maintain a bigger picture view as the investment is designed as a long-term solution, according to research house SuperRatings.
The advice from SuperRatings comes as members check their account balances to see the effect the sell-off had on their retirement savings and it warned against making decisions based on an emotional reaction to the current environment.
Kirby Rappell, SuperRatings executive director, said super members far away from retirement need to stay invested.
“Knee-jerk changes to your portfolio could have a negative effect on your retirement,” Rappell said.
“Switching to cash will lock in losses and mean you miss out on the upside when the market eventually recovers.
“We suggest members talk to their fund or financial adviser to help ensure any decision is aligned with a long-term strategy.”
The firm reminded investors that for those in the 20 to 40 age bracket, you still had another 30 to 50 years before retirement, and older investors closer to retirement should be in conservative options to mitigate losses in market downturns.
According to estimates from SuperRatings, the median balanced option fell 8.9% in March and was down 10% for the quarter.
The median growth option, which was generally more exposed to shares, fell 12.5% in March and 14.1% over the quarter; the median capital stable option fell only 4.1% in March and 3.8% for the quarter.
For pension returns, the median balanced option fell 10.2% over the quarter, while the median growth option fell 14.4% and the median capital stable option fell 3.8%.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
