Markets have been volatile recently—both equities and bonds. Volatility can be uncomfortable for many, but the good news is that markets have historically recovered after falls*. We saw this after the fall in equities in February 2020 when the COVID-19 pandemic started.
Our Investment team here at UniSuper is well placed to handle market volatility. We manage over 70% of funds in-house across all major Australian and global asset classes with deep expertise across our team and we’re watching markets daily.
Trading off risk and return
Riding the ups and downs of financial markets is part and parcel of investing. History shows that assets that are more likely to fluctuate in value over short periods generally deliver higher returns over the long-term*.
Let’s compare shares and cash. The chart below illustrates how the two asset classes have performed since 2000.
Focus on the long term
While volatility can be stressful, it’s important to take a long-term view. Even people transitioning to retirement — or who have retired — may be investing for many years. So be patient, maintain perspective and be sure to seek advice if you need it. If you’re thinking about changing your investment strategy, we have 16 investment options with different risk profiles and objectives. When choosing options, some useful questions can be:
1. How much longer will my funds be invested?
2. How much risk am I prepared to take?
3. Is my investment strategy right for me?
Before making a decision you should read the Product Disclosure Statement and Target Market Determination . If you need help, talk to a licensed financial adviser or our award-winning financial advice team. Simply make an appointment or call us on 1800 823 842 for more information.
Stay informed on what’s happening in markets and the economy
Our monthly investment podcast with our lead economist David Colosimo gives a snapshot of economic and market activity. We release these podcasts at the start of each month. Subscribe via Apple Podcasts, Spotify, SoundCloud or wherever you get your podcasts.. You can also visit the podcasts page on our website.
Chief Investment Officer John Pearce shares his insights in his regular investment update videos, watch his latest video.