Dealing with market uncertainty

21 June 2022

When share market volatility impacts your super, it’s only natural to feel concerned.

As a CareSuper member you can be reassured that our active investment strategy works to protect your super during market downturns, providing you with a smoother ride to retirement. 

Here are some key things to keep in mind when dealing with market uncertainty. And remember, we’re always here to help.

1. Take a long-term view

Your super is a long-term investment — so it’s a good idea to look past the daily headlines and instead focus on your long-term goals. Growth assets like shares are designed to provide capital growth over a period of 7 years or more. The timeframe for super may be 20 years or more. This means short-term volatility shouldn’t diminish the long-term potential of your investments. Growth assets such as shares tend to fluctuate in the short term, but they’ve historically provided higher returns for investors over the long term.

When share markets fall in value, it may be tempting to sell up. However, trying to time the market by selling now and buying back later is a risky strategy that rarely results in investors coming out ahead. By taking a long-term view of investing, you can ride out short-term fluctuations and take advantage of growth opportunities over the long term.

2. Keep the bigger picture in mind

While we’d like to see higher returns, we need to keep in mind that the recent market declines have occurred following 12 consecutive years of positive returns — including record high performances for our Balanced (MySuper) option, which achieved a return of 17.5% last financial year.

More importantly, our long-term results remain strong, with our Balanced (MySuper) option delivering returns of around 9% p.a. over the past 10 years. According to independent ratings agency SuperRatings, this ranks us in the top 10 of best performing funds in Australia.*

Our investment approach focuses on diversification and active management. We’ve applied this approach through many market cycles and past downturns, and it has been the key to our track record of long-term outperformance.

3. Diversify your investments

Diversifying your investments is one of the most helpful ways of managing volatility in your portfolio. Your investment may benefit by being spread across a variety of asset classes.

CareSuper invests across a range of alternative asset classes such as infrastructure (for example toll roads, ports and airports), in addition to more traditional asset classes like shares, property, fixed interest and cash. This diversification should help soften the effects of any share markets falls, as some of these asset classes often tend to do well whilst others struggle. Spreading your assets around also means you’re less reliant on any one asset class at any particular time.

Excluding our Capital Guaranteed option, all our Managed options have considerable exposure to alternative assets. You can learn more about our alternative investments in our Investment Guide.

4. Understand risk

All investments carry some risk. How much risk you’re willing to accept will be influenced by your financial situation, family considerations, time horizon and even your personality. If market volatility has changed the way you feel about risk, it’s important you speak to a financial adviser to discuss any necessary changes to your investment options.

Advice when you need

If you have questions or you’re looking for advice about your super, remember we’re always here to help. As a CareSuper member you can access advice over the phone – at no extra cost.^

Book a call-back with a financial planner today or call us on 1300 360 149.


* SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, April 2022.
^ Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.