Why are the 30 June 2008 investment returns so low?
Answer
Share market volatility and super fund returns are often closely related as a large portion of many super fund assets are invested in both Australian and international share markets.
Investment returns to superannuation funds have been directly affected by the downturn in global share markets and the US credit crisis. These events have raised a lot of questions about investment risks and more specifically investment losses.
The Association of Superannuation Funds of Australia is advising people to prepare for a downturn especially since most super fund members have been enjoying excellent returns for a number of years. The Trustee has taken steps to reduce First State Super's exposure to the current volatility in the share markets but investment returns will still be lower than those in recent years. However, it is important to remember that because superannuation is generally a long term investment, care should be taken before switching investment strategies on the basis of short term market fluctuations. The best advice we can give is to see a financial adviser who can take into account your financial situation, goals and needs.
The information on this website contains general information and does not take into account your personal objectives, financial situation or needs. It is important, before deciding whether to become a member of First State Super (or, if you are already a member, to continue your membership) that you consider the First State Super Your Member Guide Product Disclosure Statement having regard to you own situation.
