Market volatility update
At the time of writing, the impacts of the Coronavirus are escalating, and the situation is rapidly changing. There continues to be a very high level of media and public commentary about the impacts for global share markets as well as the broader economy.
I wanted to assure you that we are closely monitoring the situation, taking expert advice and ensuring continuity of usual business operations. At all times, we remain focused on preserving and building wealth for the legal community’s life in retirement.
Your retirement savings are for the long-term
Recent share market declines triggered by the virus should be considered in the context of super being a longer-term investment. Over the last decade, a return of 7.7%(1) per annum was delivered for MySuper balanced, where seventy per cent of all members were invested.
Most of our accumulation members, including those starting to think about retirement are likely to remain invested for another 10 to 30 years, leaving them well placed to ride out the rise and fall of markets.
Lessons from the past & historical investment returns
Over our thirty year history, our investment strategy has prevailed during other periods of significant market volatility and disruption including the 1987 share market crash and more recently the 2008 Global Financial Crisis.
Last Friday our Board met to receive and consider advice from our internal investment team and external investment adviser (Willis Towers Watson) both of whom have substantial experience in managing portfolios during periods of higher volatility. The Board will continue to closely monitor developments and consider opportunities which present themselves in the current changed investment landscape.
Latest investment returns
After strong returns for the first half of 2019/20, recent declines in investment markets have resulted in returns for all legalsuper investment options (other than Cash & Enhanced cash) being negative for the current financial year to 13 March 2020. The latest investment returns for superannuation investment options are available here and pension options are available here.
Here to service and support you
We understand you may have concerns that recent share market declines have negatively impacted your savings. Do not hesitate to call us on 1800 060 312 or email email@example.com if you have questions or concerns.
Our National Client Service Centre is currently open Monday to Friday from 8am to 8pm (AEST) and our Client Service Managers around Australia will continue to meet with members and employers via telephone or video calls.
Face-to-face meetings and workplace seminars have been suspended.
To ensure continuity of business operations and the health and wellbeing of our people, many of our staff are now working remotely, however we are confident that we will be able to continue to deliver service to our members and employers through this challenging time and will continue to provide periodic updates on developments.
In the meantime, and on behalf of legalsuper, I pass on our best wishes to you and your family in remaining healthy and safe during this time.
(1) This return is to 29 February 2020 and is after investment fees, tax & administration fees (excluding the $1.30 per week per member fee)
This information is general information only and does not take into account your individual objectives, financial situation or needs. Accordingly, before taking any action, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. You should obtain a copy of legalsuper’s Product Disclosure Statement (PDS) which is available by contacting legalsuper or via its website at legalsuper.com.au before making a decision. Past performance is not a reliable indicator of future performance
Share market volatility
How does recent market volatility affect your super? As with any long term investment, your super will be exposed to many market cycles. It’s reasonable to expect a decrease in growth for Q1/Q2 2020, but keeping a long-term focus will show smoother, steady growth.