Recent developments, namely increased concern as to the ability of some European countries to repay debts and a weakening in US economic data, have caused global share markets to display higher than usual levels of volatility over the months of August and September.  

QSuper’s approach is to manage your investments in a measured way over the longer term. We don’t react to market events on a day-to-day basis, but we do continually monitor and rebalance as necessary.

Our investment capability has been expanded over the last few years to form a diverse team of investment specialists, who continually assess economic and market fundamentals to ensure investments are appropriately valued. If necessary, these specialists can make adjustments within the asset allocation ranges set for QSuper’s investment options.

For example, we have held certain views for some time regarding the expected rate of recovery of the world economy post the Global Financial Crisis and of debt positions of certain countries. As a result, our Ready Made options such as QSuper Balanced (Default) have been more conservatively positioned, which has been achieved by gradually increasing exposure to bonds and reducing exposure to shares.

We are confident our long-term approach is still holding firm despite recent market volatility and that significant changes in our strategy or in our portfolio positioning are not needed. In our opinion there are no major mis-valuations in either the share or bond markets, and we view markets as liquid, so we will continue to trade as normal.

As a result we will maintain our long-term approach to investing, which means we are not looking to alter the prescribed asset allocation ranges set for our investment options in response to short-term market volatility. However, our investment specialists will continue to assess markets and the wider economic environment and we will adjust investments within these set ranges as we think necessary.

In uncertain times, it’s best to remember that superannuation is a long-term investment so a decision about your investment option or investment mix should be made with the long-term in mind.

If you are unsure if you need to take action, you may want to speak with a financial adviser. As a QSuper member, you have access to subsidised¹ financial advice about your superannuation benefit from Q Invest². You can contact Q Invest on 1800 643 893.

Q. I often hear the term “paper loss” – how does this relate to my super?

A. The unit prices of the QSuper investments that you hold reflect the market value of your super. If the unit price has gone down, this is called a paper loss. A paper loss turns into a real loss if you choose to withdraw or switch your investment, thereby crystallising an actual loss.

To realise a loss, there must be an actual sale of an investment, or a switch from one investment option to another.

 

Q. When is it a good time to switch from one investment option to another?

A. Many QSuper members maintain their investment option or investment mix both in good and non-performing times, reflecting the long-term nature of superannuation. Time in the market is considered a better strategy, than trying to time the market.

Of course a decision to switch is an individual one and depends on your personal and financial circumstances and needs. If you are worried about the current market volatility you may want to consider the following:

1. Normal market cycles means the value of investments do go up and down.
2. Most investments have a long-term return projection - past performance is not a reliable indicator of future performance.
3. Investments decisions should be rational, not emotional, and should be based on your investment timeframe and investment objectives.

 

Q. I’ve submitted an Investment switch form but now I want to cancel it.

A. It is not possible to cancel an investment switch request that has been received by QSuper.

If you have submitted an Investment switch form, but you have changed your mind and you wish to cancel the switch request, you will need to submit another Investment switch form indicating your new investment mix.

This new Investment switch form will be processed in the same manner as all Investment switch forms. The unit price applied to a switch of your existing investment will be the unit price two working days after a valid switch application is received. Switch applications received after 5.00pm on a working day, or at any time on a non-working day (i.e. a weekend or public holiday), will be stamped as having been received on the next working day. The unit price two working days after the stamped date will then be applied.

Generally all investment switches are processed within five working days of being received by QSuper.

There currently are no fees for making an investment switch, but please keep in mind you can only make a maximum of four switches in a financial year.

 

1. QSuper subsidises fees for advice relating to your QSuper benefit. Q Invest also provides advice about investments outside of your QSuper benefit and this may incur an additional fee.

2. Q Invest Limited (Q Invest) ABN 35 063 511 580 AFS licence 238274. Q Invest is wholly owned by the QSuper Board of Trustees, and is a separate legal entity which takes full responsibility for the financial services and products it provides.