AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Little noi png8/31/2023 ![]() ![]() This was in part because investors were still uncertain about the economic outlook and how much interest rates would need to rise. Around September you'll notice that markets dropped quite quickly. This shows how a broad range of large and medium sized companies performed across 23 different countries. You can see that uncertainty in this chart, which tracks the MSCI World Index. These issues cause some market uncertainty as we start the new financial year in July 2022. Meanwhile, interest rates have also been rising as central banks try to control this inflation. There was also rising inflation as we emerge from COVID 19 lockdowns, where I'm sure you've noticed the cost of things like food, gas and electricity all going up. Those include ongoing geopolitical tensions, particularly the war in Ukraine. Last year in 2022, there were a few headlines that probably caught your attention. This makes it one of the smartest things you can do to get ahead in future. As markets recover, the value of your investments will go up. That's because when markets and share prices fall, you can buy more for your money. While it may seem counterintuitive, it can actually make sense to add more money to your super during market downturns. To put this into perspective, if you had invested $50,000 in July 2013 and stayed invested in the high growth option, your savings would now be worth over $121,000. This dotted line shows how the average return remains positive. What matters most is how short term returns even out over time. While this shows our High Growth option, many of our investment options see similar cycles. Your returns will differ month to month and year to year, although this can be really unsettling, it's a perfectly normal part of investing. ![]() But let me explain a bit more why this is. While these results are great, it's the long term returns that have the most impact on your super and lifestyle after work. Which generally means smoother, more stable returns. The Conservative Balanced option is designed so that when share markets fall, it falls by less. Although a little lower in comparison to the high growth option, it reflects the approach our retired members prefer to take towards risk. Meanwhile, members in our most popular retirement income account option, the Conservative Balanced option, saw returns of approximately 7.6% for the year, which is also above the average annual return for this option. We're really pleased with this double digit return, which is above the long term average of 9% over the past ten years. ![]() Most of our members under the age of 56 have their money invested in our Future Saver high growth option, which has returned approximately 10.7% for the year. It's been a positive year for most members and their super balances. I'll talk about our investment strategy and also the road ahead, what we expect over the coming months. In this video you'll find out more about how your super did over the past 12 months and what's been happening with the markets. Damien Graham: Hi, I'm Damian with an update on your super and the markets this year. ![]()
0 Comments
Read More
Leave a Reply. |