Chief Investment Officer Mark Delaney looks at the events during the 2020 financial year which have impacted both Australian and global investment markets.
It’s important to understand how recent events have impacted economies and investment markets around the world, and the effect that has on your super.
In the video below, Chief Investment Officer Mark Delaney provides insight into the market volatility over the past 12 months to 30 June 2020.
FY20 – a year of peaks and troughs
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Video: Investment Performance Factors
Speaker (00:06): When it comes to investment markets, the 12 months to 30 June 2020 featured three different phases. The first phase took place between July 2019 through to February 2020. Over this time, members experienced strong returns with Australian and international share markets reaching all-time highs in late February. Over the course of March this year came the second phase. COVID-19 was declared a pandemic on the 11th of March after sweeping across the globe. It delivered devastating health impacts along with significant volatility in investment markets, resulting in falling values of listed shares. Fortunately, our government was quick to respond, introducing policies and programs, such as Jobkeeper and Jobseeker. These programs continue to provide financial support to individuals, families, and businesses impacted by COVID-19. This government support was the springboard for phase three that started in late March. The benefits of fiscal stimulus and prospects of the economy re-opening boosted share market returns over that period. The result was a spectacular rebound in market performance from early April through to the end of June. It's important to note, this rebounding performance didn't apply to all shares. It was mostly driven by a handful of companies and industries, especially in technology. Companies with a strong digital customer service and online distribution networks performed exceptionally well while live entertainment, tourism and education sectors were hit the hardest by the downturn.
Speaker (01:47): Navigating the market volatility and positioning the portfolio for longer term growth remains the key focuses for the AustralianSuper investment team. We continue to evaluate global events to look for investment opportunities.
For more information on AustralianSuper’s recent performance, you can also view:
- AustralianSuper’s performance for the year to 30 June 2020
- AustralianSuper’s investment outlook
- Managing investments during uncertain times
Investment markets in the 12 months to 30 June 2020 featured 3 very different phases:
Phase 1: July 2019 through to late February 2020
Over this time, members experienced strong returns in their super investments, with Australian and international share markets reaching all-time highs in late February.
Phase 2: March 2020
During this time, the COVID-19 pandemic swept across the world, impacting the health of most populations, along with economies and investment markets.
Governments responded quickly with policies and programs to provide financial support to individuals, families and businesses impacted by COVID-19. These included the JobKeeper and JobSeeker programs in Australia and allowing people to access up to $10,000 of their super early.
Phase 3: April to June 2020
When government support and prospects of the economy re-opening combined to rally public confidence, it boosted share market returns. This resulted in markets rebounding dramatically from early April to the end of June.
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 available at australiansuper.com/pds. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.