Solid performance in uncertain times
Share market volatility and trade uncertainty continued through November, impacting the returns of all Australian superannuation funds. While Media Super was not immune to these falls, we are performing comparatively well for our members, primarily because of our downside portfolio protection strategies.
Both the super and pension Balanced options ranked third for the financial year to date, with the super option ranking first – the best performing Balanced option in Australia – and pension option second over the last 12 months, according to SuperRatings.¹&²
It's important to remember that short–term losses happen but super is a long–term investment.
Your investment returns
Our Balanced (MySuper) option recorded –0.47%³ for the financial year to 30 November 2018, and while this is a negative return it is still well ahead of the median return of –1.51%.¹
It's important to note that for a rolling 12–month period, the Balanced (MySuper) option returned a positive 4.20%³ and is ranked as the highest performing option, well ahead of the median return of 2.19%.¹
The pension Balanced investment option recorded –0.55%³ for the financial year to 30 November 2018, also ahead of the median return of –1.65%.² The pension option is also performing well over 12–months, returning 4.46%³ compared to the median 2.19%.²
Media Super's Balanced options are well diversified across shares (Australian and international), property, infrastructure, fixed interest and cash investments, as well as various alternative investments, such as our Fulcrum film and television financing fund.
By investing in our Balanced investment option you also have added peace–of–mind knowing we have portfolio protection in place, a mechanism designed to reduce the impact of losses if share markets fall heavily, as they did in October and November. We are one of the few funds that has this type of protection in place.
We're maintaining a cautious outlook for the rest of 2018–19. To navigate the potential risks ahead we've maintained our portfolio protection and increased the diversification and flexibility of our investment portfolio.
Looking ahead, we are confident our Balanced investment strategy is well positioned to continue meeting our long–term investment objectives for your super and pension.
We're here to help
We understand that some members may be concerned about the impact of share market fluctuations on their super or pension account balance.
Share market falls can cause people to switch to more conservative investment options because they're nervous about losses. Unfortunately, this is often the wrong time to switch – as these losses are not actually cemented until they switch to another option – because the same people will miss out on the gains when markets rebound.
If you are concerned, please call our Helpline on 1800 640 886⁴ to talk through your concerns and your investment options.
1 SuperRatings Fund Crediting Rate Survey - SR50 Balanced options (60-76) Index, November 2018.
2 SuperRatings Fund Crediting Rate Survey - SRP50 Balanced options (60-76) Index, November 2018.
3 Investment returns are not guaranteed and past performance gives no indication of future returns.
4 Helpline Advisers providing general or limited advice are representatives of Mercer Outsourcing Australia Pty Ltd ABN 83 068 908 912, AFS Licence 411980.
Media Super has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of Media Super. Advice is provided by one of our Financial Planners who are Representatives of IFS. Fees may apply. Further information about the cost of advice is set out in the relevant Financial Services Guide, a copy of which can be obtained by calling IFS on 1300 138 848. IFS is responsible for any personal advice given to you by its Representatives.