Updated 8 April 2020
Following a long period of continued growth and new record highs, the Australian and global share markets are reacting to international concern around the coronavirus. The virus has been found in over a hundred countries, and it’s still not clear when or how the virus will be contained.
The economic impact of the coronavirus remains uncertain. Many analysts have concerns about global and Australian growth slowing because of the coronavirus. Most global share markets have fallen from recent highs and have been highly volatile, and some commodity prices and currencies have also moved significantly.
When you first join Rest Super or Rest Corporate, your super is automatically invested in the Core Strategy - unless you tell us otherwise. Members can also choose from a number of investment options to suit their personal investment horizons and attitude towards risk.
The Core Strategy is a balanced fund, with a mix of growth and defensive assets. It has a long term horizon (10+ years), and if markets fall then in the short-term then balances can reduce during this time. Over 20 years for example, we estimate 3-4 years will have negative returns. If you’re invested in the Core Strategy or other options with growth assets, you may have noticed your super balance has fallen in recent weeks.
Since the Core Strategy started in 1988, the average annual return has been 8.57%^, despite including periods of major market falls like the dot-com crash (2000) and the global financial crisis (2008). We actively manage how we invest in various assets to respond to risks and opportunities. But past returns cannot provide an assurance of future performance and if you’re concerned about your situation and want to review your investment strategy and options, you may wish to seek financial advice.
In recent years, at Rest we’ve noticed heightened risks in global markets. These global risk factors include historically low interest rates combined with high levels of debt. Risky markets are more vulnerable to ‘shock’ events which trigger major market falls or volatility. Following our assessment of these risks we strategically reduced share market risk in the Core Strategy:
We could not have forecast the coronavirus, but it’s the kind of unforeseen event we were concerned about.
If you are still worried here are a few steps to think about:
We are hearing reports that our members are receiving unsolicited phone calls from us about their super. These are fraudulent. Rest will never call you to ask for your personal or financial information or to request a payment.
If you think you’ve been targeted by someone who is trying to access your super early, report it to: