QU: Do you see the situation resolving soon or not?
MD: We expect uncertainty and volatility to be a feature of the market for some time. Volatility is unlikely to resolve until a level of certainty returns and this could be when there are fewer new cases of Coronavirus being reported and/or governments are able to manage and coordinate their responses from a global perspective.
QU: What will that mean for the portfolio?
MD: As far as what it means for the Balanced option, we already knew we were nearing the end of an economic cycle, and we also know that at the bottom of an economic cycle – when the news is very grim – it can be the best time to invest. So almost certainly there will be opportunities from an investment perspective.
QU: What are your final thoughts on these current events in the scheme of things?
MD: It’s really important to maintain perspective, and understand that at AustralianSuper your retirement savings are being managed by over 150 investment professionals who are trained to manage and guide the portfolio through these market events.
We’re also not letting short-term volatility cloud our judgement. We’re not allowing ourselves to lose sight of the long-term rewards and we continue to manage the portfolio for the long term.
Yes, we have seen similar events before, and I’ve said it previously that at the time they seem terrifying. It’s important to focus on the long term and trust that the bumps will be ironed out when looking at your retirement savings balance over a long-term horizon.’
Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
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.