Market volatility and your super

Understanding the recent market volatility

The recent rollout of US President Trump’s new trade policy has rattled share markets. The United States’ imposition of tariffs – a tax on imports – has triggered higher market volatility and increased concerns that the US economy might be headed towards recession.

These events serve as a reminder that macroeconomic factors are ever present, sometimes with more force than usual, like now.

What does this market volatility mean for you and your super savings?

In times like these, it’s natural to feel uneasy when headlines emphasise uncertainty. However, it’s important to remember that super is a long-term investment.

History shows that markets tend to recover and grow over-time. Staying invested allows your super to benefit when markets bounce back.

Our approach to investing is designed to weather such periods of volatility by maintaining a focus on sustained growth and stability over the long-term.

How we are managing your retirement savings in times of market uncertainty

IOOF’s Balanced Growth investment option – our default MySuper investment option - is continually reviewed to ensure the option remains well-positioned for changing market environments, like we are witnessing now.

The IOOF Balanced Growth investment option is a robust, well diversified portfolio designed to capture growth opportunities whilst also managing against potential downturns. By spreading investments across various asset classes, including unlisted assets like unlisted infrastructure, we aim to reduce risk and enhance returns.

1. Diversification
   A key element of our strategy is diversification. By spreading investments across various asset classes, we aim to reduce risk and enhance returns. This philosophy not only helps navigate market turbulence but also supports stronger performance over time.
2. Exposure to unlisted and alternative assets
   We maintain our exposure to unlisted and alternative investments (investments that are not traded on traditional share markets). The option’s exposure to these assets, such as insurance-related assets, offer diversification benefits due to their low correlation with share market movements while also offering the potential to deliver higher returns to members over the long-term.

Staying the course and focusing on long-term returns

While market fluctuations can be unsettling, staying calm and focused on long-term goals is essential.

Our investment approach helps to ensure your super is positioned to endure short-term challenges while striving for steady growth in the years ahead.

We believe that being agile, selective and opportunistic is important in navigating the volatility that is likely to occur in markets over the coming months.

Our disciplined, research-driven investment process – backed by rigorous governance and active portfolio management – helps to ensure your retirement savings are strategically positioned to pursue growth while navigating market challenges with prudence.

We are well-equipped to guide portfolios through times like these

We are leaning on our deep experience of managing through past market events like the COVID-19 period, and the 2008/09 Global Financial Crisis. We navigated our clients’ investments through these highly disruptive episodes and are confident that the skills, knowledge, and judgment across our investment team will again prove to be up to the challenge this time.

Finally, it's important to remind investors that while short-term market fluctuations can happen, our focus remains on delivering sustainable long-term growth.

Important information: This article has been prepared by IOOF Investment Management Limited (IIML) ABN 53 006 695 021, AFSL 230524 as Trustee of the IOOF Portfolio Service Superannuation Fund ABN 70 815 369 818 (Fund). IOOF Employer Super is a Division of the Fund. IIML is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (Insignia Financial Group).
This information is general in nature and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you. You should consider obtaining financial advice before making any decisions based on this information. It is recommended that you consider the relevant Product Disclosure Statement (PDS) before you make any decisions about your superannuation. You can obtain the latest copy of the PDS and Target Market Determination (TMD) by calling us on 1800 913 118 or visiting ioof.com.au. Past performance is not an indicator of future performance.
Any opinions expressed constitute our judgement at the time of issue and are subject to change without notice. Any projection or forward-looking statement in this communication is provided for information purposes only. No representation is made as to the accuracy or reasonableness of any such projection or that it will be met. Actual events may vary materially. Subject to terms implied by law and which cannot be excluded, neither IOOF nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in the information in this communication.