REI Super weathers well in a volatile quarter
International and local investment markets had some significant ups and downs again last quarter, caused by investors’ nervousness about the slowing rate of growth in the Chinese economy. In Australia, this had the greatest impact on energy and resources shares.
The competitive performance of REI Super’s Trustee Super Balanced option for the period was due to the Fund’s relatively defensive and selective approach to asset allocation and management of our portfolios.
It’s important at times like these to remember that your super is not a short-term proposition, however, and that it’s unwise to react every time the markets go up or down. You only need to look at the longer term investment return figures to see the evidence for that.
At REI Super we continually and actively manage the portfolios across the different types of investments in line with the prevailing economic and market conditions and risks.
This has minimised the impact of the recent share market declines on our members’ accounts and provided gains from better performing parts of investment markets. It’s also meant we have performed strongly in comparison to other super funds.
For example, many of our offshore assets benefited from the recent decline in the Aussie dollar. And our unlisted property investments (see the article below) have also continued to perform strongly.
Outlook
Share market volatility may be with us for some time yet. The double digit returns from shares of the past five years are likely to be in the single digit range for the foreseeable future.
Volatility is often a reflection of investors’ nervousness. The slowdown in China’s growth, uncertainty where future growth will come from, and when US interest rates will rise are all factors in play.
At REI Super, our response to these issues is to invest defensively and selectively and to continue to invest with an eye on long terms for our members.
Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation.