Super is designed with the long-term in mind. While short-term market dips can have an impact, history shows that markets tend to recover and grow over the long run. That’s why staying invested and focused on your long-term goals is often the most effective approach.
The Australian Food Super portfolio remains steady.
Australian Food Super has navigated the last few years of high volatility and uncertainty well, leading to top quartile returns for our MySuper option for trailing three- and five-year periods based on APRA data at 31/12/2024. Although inflation is lower and employment remains strong, geopolitical uncertainty and the US trade (tariff) policy has led to volatility. The Australian Food Super portfolio is well positioned to navigate the challenges ahead.
Market volatility is heightened as tariff uncertainty remains.
Global stock markets have seen increased volatility in recent weeks as tariff and trade uncertainty have created investor concern around the overall economic and inflationary outlook. The near-term outlook remains uncertain but is anticipated to settle over the intermediate term.
Despite the market volatility, the Australian Food Super portfolio is well-positioned:
- All options remain at Strategic Asset Allocation (SAA) targets, with no extra exposure to risk.
- Only 45% of the assets in the MySuper option are directly invested in listed equities, and these are well spread out across regions and currencies.
- Private Equity holdings are expected to hold their value and perform better than the listed equities during periods of listed equity declines. MySuper, High Growth, and Alternatives hold Private Equity.
- Unlisted property and credit are also expected to hold up well and weather short- to mid-term risks.
- Liquidity is well managed across all investment options.
Are you thinking of switching your investment?
Sometimes when super balances fall because of global market volatility, a typical reaction is to want to move out of higher risk investment options and switch to something that doesn’t fluctuate daily, like cash. But this might not be the right move for you.
Switching investments at the wrong time may cost you real money so it should always be a considered decision. If you are thinking of switching you should get advice to ensure your decision aligns with your long-term goals.
You trust us to manage your super in the good times. You can trust us to apply the same expertise in these difficult times too, keeping in mind that for the short-term, markets will continue to be rocky.