January investment update
While Australia is on the path to recovery, the new year saw the further spread of COVID-19 and increased restrictions in many other countries, including across Europe, the UK and the USA. Reflecting the changing restrictions and spread of the virus, financial markets were mixed in January, after a strong fourth quarter in 2020.
Australian shares edged higher, whereas global shares generally declined. In aggregate, commodities such as iron ore, copper and oil all rose but the Australian dollar declined slightly against the US dollar and Great British pound.
In this investment environment, Media Super’s Balanced options (MySuper and pension) recorded a small increase in January 2021.
It’s important to remember that superannuation is a long-term investment and over the longer term, Media Super’s Balanced options are performing strongly. Over the last 10 years, super members in the Balanced option received a return of 7.65% per annum.
Your investment returns
The Balanced (MySuper) option returned 8.37% for the financial year to 31 January 2021 and the pension Balanced option returned 9.28%.
It’s important to note that longer term investment returns are performing strongly and meeting their investment objectives. Our Balanced options’ returns for three, five, seven and 10 years are all above median.1
Media Super’s Balanced options (MySuper and pension) are well diversified across a number of asset classes, including Australian and global shares, property, infrastructure, fixed interest, foreign currency and cash, as well as various alternative investments, such as our Fulcrum film and television financing fund.
While uncertainty remains due to COVID-19, as we wait to see the success of vaccination programs around the world and their impact on economic recovery, it is nowhere near the uncertainty experienced in 2020.
We recognise there will continue to be ups and downs in financial markets, we are now more optimistic in our outlook.
While we started the financial year with a broadly neutral position for the Balanced investment options, adjustments made to our investment strategy in December to take a small overweight to our growth allocation. We believe this will lead to better risk-adjusted returns for members in year ahead.
As always, we will continue to work with our investment managers and advisors to identify new opportunities and ways to enhance our existing strategies.
Looking ahead we remain confident that our Balanced option is well positioned to continue meeting its long-term investment objective for your super and pension savings.
We’re here to help
If you have any questions or concerns about your investment options, or you’re considering making an investment switch, please call the Helpline on 1800 640 886.
Considering an investment switch? Make an informed decision
We understand that fluctuations in financial markets and potential losses can be concerning, especially if you’re retired or nearing retirement.
Times of uncertainty are often the wrong time to switch, as it crystallises and locks in losses, and can lead to lower account balances in the long term. This is because members often don’t switch back into less defensive options when uncertainty subsides, and miss out on gains when financial markets rebound.
If you’re considering switching investment options, take the time to fully understand all options available to you and the potential impact of switching now. You can find information about our full range of investment options in the Investment Guide and Pension Guide.
And it’s a good idea to speak to our team before making a switch, so you can talk through your concerns and fully understand the options available and associated risk. Call us on 1800 640 886 to get started.
Note: Investment returns are not guaranteed and past performance gives no indication of future returns.
1 SuperRatings Fund Crediting Rate Survey – SR50 Balanced options (60-76) Index & SRP50 Balanced options (60-76), January 2021.