Investment markets around the world, including Australia, are reacting to concerns about the impact of the coronavirus on global economic activity. However, it’s important to keep in mind that stock markets are also correcting from successive record highs.
Superannuation is a long-term investment
At its heart, superannuation is a long-term investment, and reacting to short-term fluctuations in the sharemarket can work against long-term investment goals.
This is why we employ an active investment approach, which means we’re regularly reviewing and adjusting our investment portfolios to manage risks as market conditions change, while keeping our sights firmly on meeting our long-term investment objectives.
As an example, Rest has reduced our exposure to shares in investment options such as the Core Strategy over the last few years to manage the risk of markets falling and to capture opportunities to deliver long-term investment performance for our members. This approach may benefit our members in the current market cycle.
The investment cycle
It’s also important to remember that the movements we’re seeing are a normal part of the investment cycle, and that longer term investment horizons tend to soften the impact of short term fluctuations.
We’re here to help
If your investment goals have changed, and you’re looking to update your investment options, consider your options. For more information, if you’d like to talk to someone at Rest, call us on 1300 300 778 from 8.00am to 8.00pm weekdays (AEST).