Insight into potential risks of switching

AustralianSuper portfolio manager Justine O’Connell gives insight into the recent volatility in investment markets and explains why it can be wise to keep a focus on the long-term.     

AustralianSuper has built a team of over 150 investment experts who are trained to manage the portfolio through all market conditions.

Specifically, the Fund does 2 things on members behalf:

  1. Builds diversified investment option portfolios. This approach reduces the volatility that our members experience, so that you can remain invested through market cycles. We do this by combining a range of asset classes including shares, fixed income, cash, property, infrastructure and foreign currency.

  2. Monitors markets, economies and indicators and adjust the Fund’s investments and the strategy of each investment option to help maximise your retirement savings and manage risk.

 Justine says: ‘Periods of market volatility have occurred through time and dramatic news headlines can be unnerving.’

‘While it may be tempting to switch in and out of more conservative investment options in an effort to protect your savings, unfortunately, investment markets don’t provide a signal of how long a downturn may last, or how quickly the markets will recover.’

‘The question you need to ask is: Is it work taking unnecessary risks by trading your super assets?’

In the video below Justine explains why it may be beneficial for members to focus on the long-term.

Potential risks of switching investment options
1. AustralianSuper data
2. Member switches – Owen Joseph Scott, 2015

Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.

Cumulative returns over the past 15 years, 1/1/2005 to 9/3/2020, do not include the impact of administration fees that are deducted from account balances. Insurance and other fees and costs may also apply. Returns from equivalent investment options of the ARF and STA super funds are used in calculating returns for periods that begin before 1 July 2006.

This information may be 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. 

Compare us

Choosing the right fund could mean more money in the future, giving you more confidence in your long-term retirement plan performance.

compare us
Back to top