May investment update
Global financial markets continued to rise in May as sentiment improved due to declining COVID-19 infection rates and relaxation of public health measures in many countries.
This continued growth resulted in positive returns for almost all Media Super investment options for May. Longer-term returns continue to be above the median for the Balanced (MySuper and Pension) investment option, which most members are invested in.
While we have seen some recovery in global financial markets, uncertainty around the pandemic and its economic impact remains. We understand many people are still concerned about the impact on their super and pension savings.
We are continuing to actively monitor the situation and as financial markets change, we may adjust the asset mix in our options accordingly; but our focus will remain on trying to exceed the long-term investment objectives of each option.
Markets move in cycles and from time to time short term losses may occur but it’s important to remember that superannuation is a long-term investment.
Your May investment returns
The Balanced (MySuper) option recorded 1.75% for May 2020; however, the return for the financial year to 31 May 2020 is still slightly negative (-1.02%) as we recover from losses in February and March.
Similarly, the pension Balanced option recorded 1.94% for May and -1.20% for the financial year to 31 May.
It’s important to note that longer term returns are still solid and meeting long-term investment objectives, with returns above the median for Australian super funds.1
If you’re invested in one of our higher growth options – such as Growth, High Growth, Australian Shares or Overseas Shares – you will have seen larger short-term losses in recent months, but these options also saw positive returns as markets continued to rise in May.
Considering an investment switch? Make an informed decision
We understand that 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.
Investing for the long term
Media Super’s Balanced options (MySuper and pension) are well diversified across a number of asset classes, including 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.
Our Balanced option also has a degree of ‘portfolio protection’ in place, a mechanism designed to reduce the impact of falling share markets. We are one of the few superannuation funds that has this type of protection in place. It does not fully offset the impact of market falls, but does reduce their impact.
As financial markets move in cycles, we will work with our investment managers and advisors to identify opportunities that will inevitably arise. We will continue to prudently manage your super and pension savings and work to exceed our investment options’ long-term investment objectives.
We're here to help
We will continue to provide regular updates as the situation evolves and changes – please check this blog for the latest news on your super and pension savings.
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.
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), May 2020.