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Special Investment Update – Coronavirus (COVID-19) 19 March 2020

A message from Club Plus Super CEO Stefan Strano

Since our last Special Investment Update on 3 March, coronavirus (COVID-19) has been declared a global pandemic by the World Health Organisation (12 March) and financial markets have been extremely volatile.

Our investment team remains very active. As always, we leverage the strength of high-quality investment advice and very deep capability across a diversified range of asset classes and investment managers across the globe.

History has shown it is important to remain disciplined during uncertain times and that hasty decisions can often exacerbate a challenging situation.

At times like this it is important to consider whether your goals have changed and how long you have before accessing your superannuation savings. If this is many years ahead, paying too much attention to the short term can lead to making decisions which may ultimately harm your chance of reaching your long-term retirement goals.

As always, if in any doubt please seek personal advice.

 When considering recent market events it may be helpful to remember that:

  • Super is a marathon not a sprint: Superannuation and pension balances have experienced short-term market declines in the past and have nevertheless grown strongly over the long term. See the 25 year share market trend graph here.
  • Timing versus time in market: Cashing out or switching to a more conservative investment option after a fall in value means you can miss out on gains if market performance changes suddenly. During the Global Financial Crisis (GFC) for example, the share market fell some 40% in 2008-9. Over the following 12 months it clawed back most of that loss and went on to exceed the pre-GFC levels. Investors who sat in cash during this time missed out on the value of that market upswing.
  • Diversification reduces risk: Our MySuper investment option contains a mix of asset classes including property, infrastructure, cash and bonds as well as share market investments. These investments are spread across many different investment managers – professional investors who are actively investing your money every day. We monitor the asset allocation of investment options constantly.
  • You are in good hands: Your retirement savings continue to be managed by experts who are closely monitoring developments both here and overseas. Club Plus Super has achieved a Platinum Rating from independent research house Super Ratings[1] every year for the past ten years. In their words we are a “best value for money” superannuation fund.
  • You’re with a top-ten fund: In 2019 we were very proud to be ranked by Rainmaker Research within the Top Ten super funds in the country for risk-adjusted returns.2 According to Rainmaker this is one of the most important things to consider when comparing MySuper products.[2]

Need more information?

We will continue to provide regular updates on how we are responding to the coronavirus on our website and more regular updates via social media – please follow us on either LinkedIn or Facebook for regular updates.

Also, we have heard questions from some concerned members about what the current environment means for their fund and their insurance arrangements. We have compiled a list of frequently asked questions (FAQs) which you can read here.

If you have any questions or would like more information, please:

Take care of yourselves and please don’t hesitate to reach out to our team if you need more information or support.

We are here for you.

Stefan Strano

[1] Super Ratings is an independent research firm of superannuation experts specialising in ratings, research and consulting – their mission is to close the information divide between super funds and their members and create a stronger super industry that benefits all Australians.

[2] Investments can go up and down. Past performance is not necessarily indicative of future performance.

We are not licenced to provide general financial product advice except as it relates to our products. Any financial product advice that is provided does not take into account your personal objectives, financial situation or needs.

Club Plus Financial Planning Pty Ltd (Club Plus Financial Planning), ABN 14 143 636 766 acts as a Corporate Authorised Representative #367058 of Link Advice Pty Ltd, ABN 36 105 811 836 (“Licensee”). The Licensee holds a current Australian Financial Services Licence #258145 and is responsible for the financial services provided to you.