Markets drop as U.S.-China trade fight escalates

The Australian Food Super portfolio remains steady.

Global stock markets fell over 10% in early April before recovering in the second half of the month. Asian and Australian markets ended up outperforming U.S. markets in April. The AUD dropped below 0.60 cents to the US dollar briefly before recovering to 0.64 cents at the end of the month. Australian Food Super navigated the month well with all Options except International Shares providing positive returns in the month of April. 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.

Call the Australian Food Super team on 1800 808 614. We’re here to help you.

Australian Food Super products issued by Australian Meat Industry Superannuation Pty Ltd ABN 25 002 981 919, AFSL No. 238829, as Trustee for the Australian Meat Industry Superannuation Trust, ABN 28 342 064 803. This information is general information only. It does not take into account your particular objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of the information having regard to your particular objectives, financial situation and needs. You should obtain financial advice tailored to your personal circumstances. PDS and TMD are available at ausfoodsuper.com.au