Understanding the recent market volatility

The recent rollout of US President Trump’s new trade policy has rattled share markets. The United States’ imposition of tariffs – a tax on imports – has triggered higher market volatility and increased concerns that the US economy might be headed towards recession.

These events serve as a reminder that macroeconomic factors are ever present, sometimes with more force than usual, like now.

What does this market volatility mean for you and your super savings?

In times like these, it’s natural to feel uneasy when headlines emphasise uncertainty. However, it’s important to remember that super is a long-term investment.

History shows that markets tend to recover and grow over-time. Staying invested allows your super to benefit when markets bounce back.

Our approach to investing is designed to weather such periods of volatility by maintaining a focus on sustained growth and stability over the long-term.

How we are managing your retirement savings in times of market uncertainty

Our MySuper Growth Portfolio – where the majority of our MySuper members are invested - is continually reviewed to ensure the Portfolio remains well-positioned for changing market environments, like we are witnessing now.

The MySuper Growth Portfolio is a robust, well diversified portfolio designed to capture growth opportunities whilst also managing against potential downturns. By spreading investments across various asset classes, including unlisted assets like private equity, property, and infrastructure we aim to reduce risk and enhance returns.

1. Diversification
   A key element of our strategy is diversification. By spreading investments across various asset classes, we aim to reduce risk and enhance returns. This philosophy not only helps navigate market turbulence but also supports stronger performance over time.
2. Exposure to unlisted and alternative assets
   We maintain our exposure to unlisted and alternative investments (investments that are not traded on traditional share markets). The Portfolio’s exposure to these assets, such as insurance-related assets, offer diversification benefits due to their low correlation with share market movements while also offering the potential to deliver higher returns to members over the long-term.

Staying the course and focusing on long-term returns

While market fluctuations can be unsettling, staying calm and focused on long-term goals is essential.

Our investment approach helps to ensure your super is positioned to endure short-term challenges while striving for steady growth in the years ahead.

We believe that being agile, selective and opportunistic is important in navigating the volatility that is likely to occur in markets over the coming months.

Our disciplined, research-driven investment process – backed by rigorous governance and active portfolio management – helps to ensure your retirement savings are strategically positioned to pursue growth while navigating market challenges with prudence.

We are well-equipped to guide portfolios through times like these

We are leaning on our deep experience of managing through past market events like the COVID-19 period, and the 2008/09 Global Financial Crisis. We navigated our clients’ investments through these highly disruptive episodes and are confident that the skills, knowledge, and judgment across our investment team will again prove to be up to the challenge this time.

Finally, it's important to remind investors that while short-term market fluctuations can happen, our focus remains on delivering sustainable long-term growth.

Find out about the investment philosophy that guides how we manage your money, our investment process and the managers we use in our portfolios.

We’re here to help

Call us on 1300 55 7586 or outside Australia on +61 3 9966 5813. Opening hours Monday to Friday between 8am and 7pm AEST (8pm daylight savings time).

For a more detailed analysis of the current market volatility, read our in-depth article here.