Sharemarket volatility and your super savings

Prime Super is closely monitoring recent volatility in global and Australian markets and the potential economic and investment market impact. We are in close communication with our investment adviser and investment managers.

Prior to last week, Prime Super held the view that market valuations were high given the global economic backdrop. Consequently, Prime Super's MySuper/Balanced Option has run a slightly lower level of risk through its strategic asset allocation for some time.

It is our view that the coronavirus outbreak is likely to weigh on Australia and weaken the global economy in the short term, and last week we witnessed the fastest 10% decline in the S&P 500 in history (see January 2020 Investment Update).

Our cautious approach to risk in the current market is reflected in a lower exposure to listed equity than peers over the last 12 months for Prime Super's MySuper/Balanced option. 

Returns for all our investment options, including MySuper/Balanced Option, which has performed strongly over the long term and has more than 90 percent of Prime Super's members invested in it, can be viewed here.

We continue to review our portfolios and we are currently looking at new initiatives to help the MySuper/Balanced Option respond to ongoing market developments as the coronavirus unfolds.

The key to managing volatility is not to panic. Accepting that superannuation is a long-term investment will help you stay immune to the temptation to sell when the market is down.

History has shown that the market should go up again over time. For example, between July 2015 and February 2016 the Australian share market fell considerably; however, by 30 June 2016 it had mostly recovered, ending the year in positive.

Prime Super offers a range of investment options to suit the needs of members. See our investment page for an overview of our investment options.

Should you wish to discuss your investment strategy, investment timeframe and risk appetite, call us on 1800 675 839.

This article contains general information only and does not take account of your personal circumstances. You should obtain personal advice where appropriate. Please note that past performance is not a reliable indicator of future performance.

Prime Super Pty Ltd ABN 81 067 241 016 AFSL No. 219723 RSE Licence No. L0000277 Prime Super ABN 60 562 335 823; RN 1000276