You may have heard that there has been some recent volatility in the share market, which may have impacted your account balance. Read on to learn more about the cause, what we are doing, and how we can help if you have any questions.
Why is there currently an increase in market volatility?
Unfortunately the impact of the novel coronavirus (COVID-19) is now more widespread than first expected. This has caused some global supply-chain disruptions, as well as economic disruption across many sectors.
How could this volatility affect your super?
Superannuation is a long-term investment for most people. This means that while we should expect periods of market volatility from time to time, we should not be alarmed when these periods occur. Christian Super designs its various investment options with the potential for market volatility in mind. For example, our pre-mixed investment options (such as My Ethical Super) are invested in:
- A mix of growth and defensive assets, which usually react differently to each other during periods of market volatility, offsetting some of the impacts.
- Good quality private assets which are not on the stock market. Generally these are less sensitive to market volatility.
- Impact Investments, which aim to deliver a social or environmental benefit alongside a financial return. Not only are these investments good for society according to our Biblical values, but they typically march to the beat of a different drum with respect to the economy. Examples are disability housing or social impact bonds that are paid for by governments and taxes, rather than being affected by changes in the economy.
- Finally, in response to expensive looking equity markets, we have long maintained structural and tactical underweighting compared to listed markets. This is designed to lessen the impact we see compared to others.
Markets will likely remain volatile for some time to come until society collectively understands the full extent of the impacts of the virus. While we feel we are well positioned given the uncertainty, we will continue to monitor the situation closely.
Although the financial impact is concerning, we are also aware that this situation will be felt in human terms – we are praying for those affected, and for wisdom for leaders who are making decisions about this situation.
We’re here to help
If you’re concerned about the recent market volatility and its impact on your account balance, we recommend that you speak to a financial advisor to discuss your specific circumstances.
You can also contact our Member Care Team by calling 1300 360 907, 9:00am – 6:00pm (AEST ) Monday to Friday or emailing us at firstname.lastname@example.org
Please note that the information contained in this post is a summary and general in nature. It does not take into account the personal objectives, financial situation or specific needs of individual members. We strongly recommend that you refer to our Product Disclosure Statement (PDS) and Investment Guide for the full terms and conditions, and obtain professional financial advice to determine the appropriateness of the information, taking into account your own personal circumstances.