Are all superannuation investment strategies the same?
Sponsored Content - QSuper’s unique investment strategy is proving a standout in weathering the ups and downs of the market.
As financial markets across the world continue to be impacted, QSuper is riding the market with its distinctive investment strategy and seeking new asset opportunities that may be presented by these market conditions.
It is an approach that earned QSuper the inaugural 2020 Smooth Ride award from research agency SuperRatings1 for giving members a smooth financial ride during a time of market volatility, while also delivering strong outcomes over the long term.
And more recently, QSuper’s Balanced investment option led the industry in investment performance over the past three months of extreme volatility and is an industry leader over one, three, five and 10 years, according to SuperRatings.2
What does the smooth strategy look like?
QSuper’s strategy is to invest in a “risk-balanced” way, focusing on risk allocation not asset allocation.
This diversification approach means that in QSuper’s default, and most other diversified options, there is decreased equity risk and increased exposure to other asset classes.
These other asset classes are led by bonds, which tend to go up and down at opposite times to shares. It also includes direct infrastructure, real estate, private equity and alternative investments.
QSuper is also a large holder of cash, which positions it to take advantage of investment opportunities within the market.
QSuper Chief Investment Officer Charles Woodhouse said QSuper had more than 20% of its assets in either cash or cash equivalents.
“QSuper is a very liquid fund and that is absolutely by design,” Mr Woodhouse said.
Managing members’ money in a volatile market
Mr Woodhouse said market volatility was not new. During the past 10 years, natural disasters such as the tsunami in Japan, political events such as Brexit, market swings during 2018 and now a global health event all impacted markets.
“QSuper’s investment team manages their portfolios, our members’ money, with the potential for this sort of negative event in mind,” he said.
To find out more about QSuper’s award-winning investment strategy visit the qsuper website.
1. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. Past performance is not a reliable indicator of future performance. Ratings, awards or investment returns are only one factor that you should consider when deciding how to invest your super.
2. Source: SuperRatings Fund Crediting Rate Survey, March 2020. SR50 Balanced Index (60-76), QSuper Accumulation account Balanced option only, ranked first over three months, third over one year and fourth over 10 years to 31 March 2020. Based on cumulative returns compounded annually after fees and taxes excluding fixed administration, contribution, switching fees and insurance premiums SuperRatings does not issue, sell, guarantee or underwrite this product. For details on the methodology refer to superratings.com.au. Past performance may not be a reliable indicator of future performance.
Product issued by the QSuper Board (ABN 32 125 059 006, AFSL 489650) as trustee for QSuper (ABN 60 905 115 063). Consider the PDS on the QSuper website to see whether QSuper is right for you.
Any advice given is general only and is provided by QInvest Limited (ABN 35 063 511 580, AFSL 238274), without taking into account your personal objectives, financial situation, or needs. Refer to the Financial Services Guide (FSG) for more information. © QSuper Board