That’s a lot to take in – can you summarise please?
Three simple points would possibly cover it:
- COVID-19 has impacted lots of things (businesses, whole industries and the way we live) which has created volatility in markets
- There is a lot of government spending that is providing support and this is helping sentiment, which has meant there has been a small recovery of losses
- There is still more uncertainty to come, though it seems possible that the worst is behind us in terms of investment markets.
Most importantly, super is a long term investment. It’s understandable to feel worried about the market losses or to feel anxious about your super, especially when short term returns are negative, like they are right now.
Your smartMonday investment managers have been making adjustments to our portfolios throughout the crisis – whilst sticking with our plan for each of the investment options.
On the way down into the crisis we allowed diversification to limit the losses our members experienced. When the markets started stabilising a little in April we started moving back into growth assets, and as we remain below our target allocations in these assets there will be more to come.
We also took advantage of the volatility to implement a new international share strategy which should benefit from the trend towards a global low-carbon economy. The financial risks of climate change are real and this change to the portfolio offers more protection, and perhaps some additional return, for members.