Global market falls in response to fears over a deteriorating global economy have flowed onto the Australian market. Concerns include high levels of European sovereign debt, brinkmanship in the US over the debt ceiling, and the loss of its Standard and Poors AAA rating.
Ups and downs in the market are a normal part of the economic cycle
In times of market volatility, it's natural to feel anxious, however it's important not to have a knee-jerk reaction and lose sight of your long-term goals. The diversified nature of Sunsuper's portfolio means we are well-placed to ride out the share market volatility and deliver strong, consistent investment returns over the long-term.
In fact, many investments have recommended investment time frames of five or more years. While there may be volatility from time to time, this does not change the long-term nature of these investments.
What should you be doing?
It is important to periodically review your personal investment needs and objectives to make sure they are still right for you. An overreaction to short-term movements in the investment market could mean missing out on long-term growth opportunities. If you are thinking about making changes to your investments, it's important to consider the full impact of making those changes, including if the changes suit your investment needs, time horizon and tolerance to market volatility.
What is Sunsuper doing?
We are constantly monitoring the markets and their impact on the Fund. Our investment portfolios are managed by a highly experienced and qualified investment team and we remain committed to managing a well-diversified portfolio that generates strong returns over the long term.
What's more we'll be taking advantage of the excellent opportunities provided by falling markets to buy good quality shares at lower prices. Funds with strong cash inflows like Sunsuper can take opportunities to buy shares and other assets (property, infrastructure, and private capital) cheaply and reap the benefits as markets recover.
Thank you for trusting Sunsuper to manage your retirement savings - it's what we specialise in and rest assured we are working hard for you.