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Investment returns heading in the right direction

May 2011

When the Global Financial Crisis (GFC) hit in 2008, it had a massive impact on investment markets. Recovery has been a long process, but investment markets look like they're finally gaining some momentum.

Although, recent global events may still impact economic growth, investment markets are expected to bounce back, and that’s good news for your super returns.

Australia, unlike many other countries, is coping well in the current global economic situation. MLC’s Investment Specialist John Owen attributes Australia’s’ resilience to “the performance of resources and energy based companies.” Our natural resource sector, especially mineral and petroleum exports, and the demand for them has helped steer the Australian economy in a positive direction post the GFC.

You can’t judge your super by short term performance

It’s an investment that should last your whole working life.

Keeping an eye on your super is important, but looking at investment returns on a year-by-year basis shows just a small snapshot in time and doesn’t give you the full picture on where your super is heading. Your super’s performance will vary each year, but investing for the long-term gives your money a greater opportunity to grow over time, so you can reach your retirement savings goals.

Your super’s in safe hands

At Plum, we use a range of leading fund managers aimed at getting our members the most competitive returns possible. You also have access to a diverse investment menu so you can choose an investment strategy that best suits your personal circumstances.

Default investment options and your super

Is your super invested in a default investment strategy? Default investment options are generally designed to suit a broad range of members. However, it doesn’t take into account the personal needs and circumstances of individual members.

It’s important to think carefully about your personal situation before deciding how to invest your super. It is recommended that you seek advice from a licensed financial adviser before making a decision.

Time to change your investment strategy?

It’s recommended that you review your investment strategy from time to time to ensure it is still appropriate for you. If your personal needs, circumstances and objectives have changed it may be a great time to reassess your super strategy.

What about those approaching retirement or who are already in retirement?

If recent market performance has put your retirement plans on hold, you may wish to consider some of the following strategies:

• Salary sacrifice additional contributions to your super;
• Review your investment strategy;
• Consider a Plum Pension product;
• Consider a transition to retirement (TTR) strategy, using our Pension product; or
• Seek financial advice from a licensed financial adviser

When it comes to your super investment, it’s important to get the right advice

Talking to a financial adviser can help make sure your super investment strategy is right for you. A financial adviser can help assess your current situation then provide advice about the types of strategies which may suit you best.

As a member of Plum you can access the services of financial advisers through Momentum Financial Advice. If you would like to speak to an adviser or find out more about Momentum Financial Advice, simply call a Member Services Consultant on 1300 55 7586, Monday-Friday, 8:00am to 6:00pm, Melbourne Time.