26 September 2023

Super funds confident they’ll beat the conflict

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Super SA is reassuring its members that their superannuation funds are being looked after as the ongoing conflict between Russia and Ukraine has seen increased issues in investments markets.

In a statement to members, Super SA said that in response to the crisis, its investment manager Funds SA has been actively engaged with its external investment managers relating to exposure to Russian securities and was implementing sanctions imposed by the Australian Government.

“Some divestment has already been achieved and the original exposure to Russia of $60 million has been reduced to $28 million, or 0.06% of the investment portfolio,” Super SA said.

“Funds SA has advised Super SA that they will continue to seek divestment across the portfolio from its investment managers, but note that trading restrictions in key markets make this difficult at the current time,” it said.

Super SA said history showed that in times of economic uncertainty, share markets could be volatile, however this should not change long-term investment strategies.

“While market ups and downs can make you question your investment plan, it’s important to remember that superannuation is a long-term investment,” Super SA said.

“During periods of crisis – be it geopolitical tensions, a pandemic or other – it is not uncommon to see market volatility in the short-term,” it said.

“When investment markets are volatile, it’s natural to become concerned about how your super is invested.

“Fortunately, Super SA members have enjoyed an established track record of receiving positive returns over a 10-year investment horizon.

“Your super will rise and fall with investment market cycles over time, but history has shown that markets increase in value over the long-term.”

Super SA said if members were concerned about investment options, they should speak with their financial planner for personalised and professional advice.

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