A long-term investment strategy that pays off

There are a number of things to consider when planning for a purposeful retirement. At Christian Super we help members prepare for retirement by focusing on achieving strong long-term results.

We offer a range of investment options to cater for different risk appetites (i.e. the amount you are willing to potentially lose to try and get higher returns) and different investment timeframes (i.e. the amount of time until you expect to withdraw your investment). Each option is designed to generate consistent investment returns over their intended investment period and within their assigned risk levels. If you haven’t made an investment choice, you will be in our MySuper option, My Ethical Super.

Each of our investment options is made up of a range of underlying investments.  Our more aggressive options (Ethical Index Shares and Ethical High Growth) include more shares and other growth assets, which tend to generate higher returns over time. Our more conservative options (Ethical Conservative Balanced and Ethical Stable) include more cash and other defensive assets, which tend to generate more stable returns. Ethical Cash is invested fully in cash investments like term deposits to deliver low but stable and predictable returns.

Our priority, particularly for our My Ethical Super option, is to provide an investment strategy that delivers healthy long-term returns. This means that from time to time our one-year investment returns can be lower than other funds. For instance, over the last few years, we’ve had concerns about how much hidden risk is present in stock markets around the world.  Markets have been going up despite there being quite low underlying economic growth. There are also a lot of risks that we don’t think have been properly factored into the way a lot of investment products are currently being managed.

With this in mind, we’ve been gradually reducing our investment in high growth assets, reducing the amount of risk we take across our investment options.  Those assets are being replaced with lower risk investments such as property and infrastructure, which still generate good returns. This strategy has meant that in 2016 and 2017 our My Ethical Super option returns were not as strong as the industry average MySuper option.

The good news is that our strategy is paying off. In the second half of 2018, as markets across the world fell, our My Ethical Super option has outperformed the industry average for MySuper options.  We believe the best time to be outperforming everyone else is when markets are falling!  We know that investment losses are painful, but we aim to make that journey smoother for Christian Super members. This is why our investment options typically deliver more consistent returns than the sometimes-erratic returns provided by other funds.

Your super is a long-term investment. There will be ups and downs but you can be confident that we’re achieving strong returns, without taking unnecessary risks.

If you’d like to discuss what investment option is right for you, why not give our Member Care Team a call today?