Stock markets fall but no need to panic

6 Feb 2018 By Media Super Team

Since Friday 2 February, we have seen significant falls in share markets, including sharp falls in the US. 

While experts are currently saying this is a market correction, not a genuine economic crisis, we understand you may be concerned about your super or pension savings. 

It’s important to remember superannuation is a long-term investment. 

The impact on your super or pension

Markets go through cycles, and while short-term falls may occur, Media Super invests to grow your super over the longer-term. We do not sell down our share portfolio, and realise losses, just because markets fall.

It’s worth noting that as at 6 February, both the Australian and US markets were still at higher levels than on 1 July 2017, despite substantial falls from their recent peaks.

Our Balanced investment option (MySuper and pension) is diversified across investments in property, infrastructure, bonds and cash, as well as shares. 

In addition, we purchased portfolio insurance within the Balanced investment option to reduce the impact of losses when share markets fall heavily. We continue to be one of the few funds that has this type of portfolio insurance in place. 

We are confident that the Media Super Balanced investment option is well positioned to meet our long-term investment objectives for your super and pension. 

What should you do?

We understand that some members may be concerned about the impact of recent share market falls 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 640 886 to talk through your concerns and your investment options.