STRONG PERFORMANCE CONTINUES THROUGH MARCH FLUCTUATIONS27 Apr 2018
March was a negative month for global equity markets, impacted by escalating trade tensions and selldowns in US tech companies (namely Facebook and Tesla). The Australian equity market was also negative, but to a much lesser extent. Australian super funds were not immune to the impact of these falls.
Media Super’s Balanced options experienced modest losses for the month of March but performed far better than most Australian super funds, with returns of -0.19%^ for the Balanced MySuper option and -0.07%^ for the Balanced pension option, well ahead of the median returns of -0.72%* and -0.82%** respectively.
It’s important to remember superannuation is a long-term investment and we’re still on track to deliver our members solid returns for the financial year and beyond.
YOUR INVESTMENT RETURNS
Our Balanced (MySuper) option – in which most members are invested – returned 6.64%^ for the financial year to 31 March 2018, ahead of the median return of 5.76%.*
The pension Balanced option also performed strongly, returning 7.24%^ for the financial year to 31 March 2018, ahead of the median return of 6.12%.**
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.
If you’re invested in one of our higher growth options – such as Australian Shares, High Growth or Hedged International Shares – you may have experienced slightly higher losses for the month of March. It’s important to remember that these options carry higher investment risk and have a longer investment timeframe, and that short-term losses are likely to occur from time to time.
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 640 886 to talk through your concerns and your investment options.
^ Investment returns are not guaranteed and past performance gives no indication of future returns.
* SuperRatings Fund Crediting Rate Survey – SR50 Balanced options (60-76) Index, March 2018.
** SuperRatings Fund Crediting Rate Survey – SRP50 Balanced options (60-76) Index, March 2018.