11 December 2023
We've answered some of the most frequently asked questions about the current market volatility below.
The share markets have not performed as well as the first half of the year – and this is something all superannuation funds are currently experiencing with their investments.
There are three main pressure points affecting markets:
Changes and volatility in the market are common aspects of investing and may offer attractive investment opportunities into assets that haven't been performing well but are expected to improve.
Our investment managers and the Brighter Super investment team are focused on managing your funds, working towards growth over time and diversity of your portfolio – so not all your eggs are in one basket.
If you are feeling uncertain or considering making a change, talking to a financial adviser can often be helpful.
If you already have a financial adviser, they can help you make informed decisions about your Brighter Super account.
If you do not have a financial adviser, Brighter Super’s team of in-house financial advisers are here to help you1.
Brighter Super members can receive intra-fund advice on a single topic related to superannuation, such as investment options, at no additional cost. At an additional cost we also offer scaled advice and comprehensive advice for retirement planning.
You can find out more about our advice services at brightersuper.com.au/advice.
We recommend members seek financial advice before making any changes, especially in response to short-term market volatility.
Switching investment options during a market downturn can solidify losses and potentially cause you to miss out on the eventual recovery.
Cash and fixed interest investments can help decrease overall portfolio volatility, but keep in mind that only investing in cash and/or fixed interest may result in a lack of exposure to growth assets like shares and property, which, in the long term, may result in your portfolio not keeping up with inflation.
Are you feeling uncertain or considering making a change? Talking to a financial adviser can often be helpful.
If you already have a financial adviser, they can help you make informed decisions about your Brighter Super account. If you do not have a financial adviser, Brighter Super’s team of in-house financial advisers are here to help you1.
Brighter Super members can receive intra-fund advice on a single topic related to superannuation, such as investment options, at no additional cost. At an additional cost we also offer scaled advice and comprehensive advice for retirement planning. You can find out more about our advice services at brightersuper.com.au/advice.
Try our investment risk profile tool
To learn more about your risk tolerance, you can also try our Investment risk profiler. This is a short online questionnaire that can help you choose an investment strategy by yourself.
After answering the questions, you can download a report explaining the results of your risk profile.
Please note that this is general advice only and does not take into account your personal financial situation, individual needs or other factors which may be relevant.
The impacts of geopolitical tensions and market volatility are being felt worldwide. Negative news headlines can make us feel uncomfortable, but it is important to avoid snap decisions during times of uncertainty.
For most people, super is a long-term investment. Staying invested in a diversified portfolio can spread and minimise the risk, helping to reduce the impact of market volatility.
While past performance is not a reliable indicator of future performance, history shows that markets increase over the long term. A rushed decision to switch investment could impact your super’s long-term growth. It’s important to keep your investment timeline in mind and to stay the course when markets are volatile.
For useful information about understanding investment risk, refer to our article, Investment basics: understanding risk.
If you are feeling uncertain or considering making a change, talking to a financial adviser can often be helpful. Find out more and how to book an appointment at brightersuper.com.au/advice.
LGIAsuper Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for LGIAsuper (ABN 23 053 121 564) (RSE R1000160) (the Fund) trading as Brighter Super. Brighter Super products are issued by the Trustee on behalf of the Fund. Brighter Super may refer to the Trustee or LGIAsuper as the context may be. This article may contain general advice which does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial advisor if you require advice which does take into account your personal financial circumstances. You should also obtain and consider the Product Disclosure Statement (PDS) before making any decision to acquire any products. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at brightersuper.com.au/governance.
This article contains information that is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to Brighter Super by calling us on 1800 444 396 or by emailing us at email@example.com.