Investment Performance Highlights – 23 April 2020


ESSSuper - 23 Apr 2020

Daniel Selioutine, Head of Investments, takes the opportunity to review market activity and the Fund’s performance in light of recent events.

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Market UPDATE:

Market volatility continued to decrease this week, contributing to more orderly financial market performance. Financial contracts on oil prices in the U.S. briefly fell into negative territory, signalling a shortage of local storage capacity, as Coronavirus related lockdowns reduced U.S. oil demand while supply remained elevated. The oil price shock paused the recent rally in U.S. equities, as investors evaluated the impact on U.S. oil producers and their financiers.

A growing number of global governments have shifted focus on considering how to approach re-opening parts of their economy following Coronavirus related shutdowns. Leading indicators of Coronavirus infections continue to improve in many developed market economies, and continue to deteriorate in many emerging market economies, which often have less equipped healthcare systems and larger populations that hasten the spread of infections.

ASSET CLASS RETURNS

Australian equity markets (S&P / ASX 200) returned -4.8% this week after gaining 1.9% last week. The U.S. equity market (S&P 500 in US dollars) declined -2.6% this week after gaining 3.1% last week. Sovereign bonds (Bloomberg AusBond Composite 0+ Year Index) gained 0.2% this week and were up 0.3% last week.

WHAT DOES THIS MEAN FOR YOU?

If you're a Defined Benefit member:

  • If your superannuation is invested in the Emergency Services Superannuation Defined Benefit Fund or the State Superannuation Defined Benefit Fund, then your entitlements are guaranteed by the Victorian State Government. Recent equity market declines will not impact your ESSSuper retirement benefit.

If you are an Accumulation Plan or Income Stream member:

  • It is important to remember that superannuation is a long-term investment, which includes peaks and troughs along the way. Over the longer term, our Accumulation Plan and Income Stream Investment Options have continued to meet their return objectives. Historically, periods of negative returns are usually followed by longer periods of strong returns.

If you're a retiree or nearing retirement:

  • There are things to consider if you’re thinking about switching your investment options. Switching Investment Options to lower risk Options may inadvertently lock-in investment losses and miss out on the potential for higher returns by being out of the market when it recovers. Market downturns, whatever their trigger may be, are inevitable and temporary. Every crisis, downturn, and recession comes to an end. And it is very likely that this crisis will be no different.

 

We're here to help

Our aim is to help every member achieve a comfortable and financially secure life in retirement through investment options that meet their retirement objectives over the long-term. We have a range of foundational principles that we adhere to when it comes to making these decisions. To learn more about how our investment approach works, click here.

Before you make any change to your super investment strategy, we encourage you to speak to an ESSSuper financial adviser, to book an appointment please call us on 1300 650 161 or email us at info@esssuper.com.au


All investment figures quoted relate to before-tax performance of the relevant industry benchmark. Investment returns cannot be guaranteed as investment markets can be volatile. As a consequence, returns can be positive or negative. Past investment performance is not a reliable indicator of future performance.

ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

Emergency Services Superannuation Board ABN 28 161 296 741 the Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (ESSSuper). The information contained in this document is of a general nature only. It should not be considered as a substitute for reading the relevant ESSSuper Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at www.esssuper.com.au or by calling 1300 650 161. Benefits in ESSSuper’s Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority.

Topics:

  • ESSSuper
  • Financial advice
  • Investments
  • Significant events
  • Superannuation

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