Coronavirus and your super
Superannuation | 4/03/2020 |
5 min read
Newspaper headlines are designed to grab your attention, and when the conversation turns to share markets it’s normal to think about your own super investments.
Despite the recent headlines regarding the Coronavirus (COVID-19), and the potential impact on the global economy, it’s important to remember that stock market fluctuations are a normal part of the investment cycle. With this in mind, it’s important to remember that market movements are typically short-term, and super is a long-term investment. Making immediate changes to your super now could affect your super later.
Reducing financial risk
Reports about the Coronavirus first began to make news in late January. Since then the virus has spread internationally and started to impact the movement of people and supplies. This has been reflected in global investment markets, with sharp drops over the past week. We are monitoring these events closely.
At Equip, we put value in protecting members money. Our six diversified options are specifically designed to reduce risk by investing in many different types of assets across a wide range of countries. This can help provide some buffer for your savings against short term volatility.
The past year is a good example of how share portfolios and super options can bounce back. Financial markets – weakened by negative global sentiment over 2018 – staged a remarkable comeback, delivering strong growth for members. Equip's default MySuper option returned 12.3% over one year to 31 January 2020.
Short term impact
While it’s too early to measure the impact on the global economy, it’s likely that there will be reduced growth during the first half of 2020.
Industries such as tourism and education will feel the effect of reduced travel. Industries that rely on Chinese supply chains may also see slowed (and at times stopped) delivery. This can have knock-on effects.
For the moment, the markets remain volatile, and we expect this will continue for the short term.
Investing for the future requires patience and a long-term view. If you’re concerned about your current investment options an Equip financial planner can help you structure your savings in a way that reflects your goals and risk tolerance.
This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Togethr Trustees Pty Ltd ABN64 006 964 049, AFSL246383 ("Togethr") is the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("Equip" or "The Fund"). Past performance is not an indication of future performance.
Togethr Financial Planning Pty Ltd (“TFP”) (ABN 84 124 491 078, AFSL 455010), trading as Equip Financial Planning, is licensed to provide financial planning services to retail and wholesale clients. TFP is owned by Togethr Holdings Pty Ltd (ABN 11 604 515 791). You can obtain the TFP Financial Services Guide and/or Privacy Statement by contacting our Helpline on 1800 682 626. This is general information only and does not take into account your personal objectives, financial situation or needs and therefore should not be taken as personal advice