market volatility

Balance

We are navigating difficult market conditions in 2022. But at HESTA, we start from a position of strength.

 

Our investment team and managers are experienced at managing investments through major market events. While it can be uncomfortable to view the news headlines and watch the market volatility, it’s important to remember that super is a long-term investment.

 

Making sudden changes to your strategy could affect the long-term outcomes of your investments. While markets can fluctuate over the short term, it’s the returns generated over the long-term that really matter. Even after periods of extreme market volatility, like the Global Financial Crisis (GFC), or more recently in the COVID pandemic, long-term investment returns recovered well.

 

Reacting to short-term market movements can negatively impact the long-term performance of your super. It risks locking in a temporary fall in the value of your investments and missing an eventual rebound.

 

For our members in an income stream option, the default strategy is a combination of balanced and conservative investment assets and has been designed to be lower risk than our Balanced Growth option.

 

Before switching your investment options, it’s important to consider your investment timeframe and the potential impact of switching investments based on short-term market movements. We strongly encourage you to seek financial advice before making any change to your investment strategy.

 

Switching investment options during a short-term market downturn can have a significant effect on your super balance over the long term. It may mean locking in losses and missing out on potential higher returns generated when the market recovers.

 

Have questions about your investments? We’re here for you.

Visit our Retirement Hub to make a time to chat with us. Our advisers are experts in helping members stay on top of their super investment strategy.

 

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