Market cycles and super - it’s all about the long term

6 November 2019

Investing successfully for retirement relies on keeping a steady focus on the long-term, and not being distracted by the twists and turns that are inevitably part of any long journey.

For AustralianSuper global economist Mark Tierney, the key to success is to remain focused on your retirement goals. For most members with long-term investment horizons that means staying the course when markets fluctuate. He explains:

'While we do get significant occasional market downturns like at the end of 2018, which can be unsettling, our members can take comfort that the strategies we adopt at AustralianSuper provide diversification that is designed to help to deliver over the long-term,' he says.

An investment strategy based on reading the market

Markets move in complex cycles and can be challenging to predict, especially if you’re not an investment expert. So it’s not surprising that being able to read the market accurately is central to AustralianSuper’s investment strategy.

As an example, Tierney points to what he terms the share market’s ‘spectacularly good run’ in the first six months of 2019 versus reports of economic growth which were generally negative.

For him, this is a prime example of the tendency for economic and market cycles to differ because of their respective time frames.

'In today’s environment central banks may cut interest rates in response to weaker economic data, but share markets can interpret this as a positive because cuts can create a stronger economy tomorrow - and that environment provides a strong backdrop for strong investment performance.'

Understanding AustralianSuper’s investment strategy

AustralianSuper has built a long-term track record of managing members’ retirement savings through market cycles.

Its global investment team continually assess economic and investment data to help formulate and adjust its investment strategies as required.

The Fund takes an active approach to managing members’ super and, for its default Balanced option, aims to generate returns that outpace inflation, as measured by the Consumer Price Index (CPI), by at least 4% a year over the medium to longer term.

'AustralianSuper has built a long-term track record of managing members’ retirement savings through market cycles.'



Reinforcing the potential benefits of staying the course, a member invested in AustralianSuper’s Balanced option from July 2009 to June 2019 would have more than doubled their retirement savings1

Real returns, after you take inflation into account, have been strong and well above the Balanced.

Balanced option vs CPI+4% pa

Returns are net of investment fees and taxes, but don’t include administration fees that are deducted from account balances. Insurance and other fees and costs may also apply. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. 

This information is general financial advice which doesn’t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898. 

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