Market Fluctuations: Believe in your long‑term strategy

Financial markets experience volatility

Movements in share markets can leave us concerned about how this might affect our superannuation. The beginning of 2022 has seen increased market fluctuations which can cause some people concern for their superannuation investment strategy. However, it's important to consider superannuation a long-term strategy.

Funds SA, as investment manager of Super SA’s investment options together with their appointed fund managers and specialist advisers, continually monitor financial markets closely and position investment options appropriately.

Investment options remain well diversified

Notwithstanding this short-term volatility, members’ investment options remain well diversified. It has been a strategic objective to build portfolios that have less exposure to share markets, to help safely navigate through turbulent times. Although portfolios are not immune to share market volatility, Super SA’s asset mix including high quality bonds, property, private equity and other unlisted assets, have helped deliver a smoother return profile for members.

Focus on the longer term

While it is necessary to remember that investment returns can be volatile in the short-term, an important discipline is to remain focused on the long-term. The best long-term guide to the investment outcomes of Super SA options is their investment objectives. For example, the Triple S Balanced option is targeting a return averaging 3.5 percent above CPI when measured over long-term periods (of at least seven years).

Superannuation is a long-term strategy but with a well-diversified portfolio, investment goals may be achieved with greater certainty. Investment options are structured around return and risk categories. Most options have an asset mix comprising of allocations to listed and unlisted equities (shares) both within Australia and internationally, property and fixed income securities. Performance is dependent on a number of asset classes, not just listed Australian and International equities.

This diversification assists in reducing the volatility of returns. For example, the effect of the share market downturns may be dampened or offset by the returns derived from the allocation to fixed income and property within an investment option.

Find out more

To find out more about each investment option, you can see Super SA's website investment section. This includes information about investment objectives and performance.