Protect against market volatility
Sponsored Content : This is a time of unprecedented share market volatility. But in times of volatility, it’s important to take a deep breath and consider long-term perspectives.
The volatility of the share market has made headlines for news agencies and created concern for investors. But in times of volatility, it’s important to take a deep breath and consider long-term perspectives.
There are many things that cause share market volatility. It can be a natural disaster such as a tsunami, or a political event such as Brexit. Or, as right now, a global health event. Volatility, particularly when reported widely in the media, understandably creates investor worry.
But before taking quick action with long-term investments and crystallising point-in-time returns, investors might be best served considering the bigger picture.
How QSuper invests
QSuper’s strategy is to invest in a “risk-balanced” way, focusing on risk allocation, not asset allocation. It’s a diversification approach different to that taken by most other superannuation providers and a factor in QSuper receiving the inaugural SuperRatings ‘Smooth Ride’ award in 2020, recognising the fund that had best weathered the ups and downs of the market, while also delivering strong outcomes.1
What it means practically for QSuper members in default and other diversified options (excluding the Socially Responsible option) is decreased equity risk and increased exposure to other asset classes, led by bonds (which tend to go up and down at opposite times to shares), as well as direct infrastructure, real estate, private equity and alternative investments.
When markets are volatile, the QSuper investment team sticks to their long-term strategy of risk-balanced diversification, which involves behind-the-scenes daily management of the shorter-term asset allocations within the QSuper portfolio.2 This daily management occurs in all market conditions.
So what should you do?
QSuper can’t tell its members what investment decision they should make, but the fund does encourage people to find out more. They know how important it is for members to hear about the performance of their investments and be confident with the balance of risk and reward they are seeking.
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. The term ‘QSuper portfolio’ is used to refer collectively to the underlying portfolios of assets which in combination make up the individual asset allocations of QSuper Lifetime and the Balanced, Moderate and Aggressive investment options.
This is an advertorial paid and prepared by the QSuper Board (ABN 32 125 059 006, AFSL 489650) as trustee for QSuper (ABN 60 905 115 063). All QSuper products are issued by the QSuper Board as trustee for QSuper. This is general information provided for educational purposes only, is not a substitute for financial advice and has been prepared without taking into account your particular financial needs, circumstances and objectives. You should exercise your own judgement about any products and services being offered and may wish to consult an adviser before you make any changes to your financial affairs.
© QSuper Board