Why long-term performance is a key measure of your fund

Your retirement savings may be built over a lifetime, so it’s the long-term performance of your fund that’s important.

High-performing super funds focus on the long term. That’s because super is a long-term investment and ultimately what matters is having enough when you retire.

While Australian financial markets, along with markets around the world, may be experiencing a bumpy ride at the moment, it’s important to keep a long-term perspective.

Keeping your super safe for the long term

QSuper is an industry leader in long-term performance, so you can still have confidence in the performance of your super even when markets are jittery day-to-day.

QSuper’s unique “risk-balanced” investment strategy means a focus on risk allocation, not asset allocation.

What it means practically for members in QSuper’s default and other diversified options is decreased equity risk and increased exposure to other asset classes. These other asset classes include bonds, which tend to go up and down at opposite times to shares, as well as direct infrastructure, real estate, private equity and alternative investments.

It’s an award-winning investment¹ approach that is different to that taken by most other superannuation providers.

This investment approach has been a factor in QSuper being acknowledged with the SuperRatings Smooth Ride award² for 2020 for being the best super fund at weathering the ups and downs of the market while still delivering strong outcomes.

And this commitment to providing members with strong long-term returns with fewer ups and downs along the way also saw QSuper’s Accumulation account named Money magazine’s Best Balanced Super Product of 2020³ for leading the field in investment performance.

Be wary of crystallising a loss

Even though share markets are volatile, and even if that’s affected your account balance right now, it’s important to realise that you haven’t actually lost anything unless you transfer, switch, or sell your investments.

If you do, that’s called “crystallising a loss”.

This may be explained by considering a day in which the Australian share market initially dropped, then finished the day higher.

If you bought shares at the start of the day, then sold them at lunchtime, you may have lost money (crystallised a loss).

If you held the shares all day and sold them at the end, you may have made a profit. If you simply bought them and held onto them, you haven’t lost or made anything and you continue to hold those shares or units.

What is everyone doing during times of market volatility?

Many members may choose to sit tight and not react to the cycle of market volatility.

However, everyone’s situation is different and depending on your stage of life, retirement plans and other specific goals, you may want to get some personal financial advice.

QSuper members have access to over-the-phone financial advice on specific topics related to your QSuper account, at no out of pocket cost.⁴

Everyone can enjoy the QSuper feeling

We are an industry leader in 10-year investment performance⁵

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1. Past performance is not a reliable indicator of future performance.
2. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. Past performance is not a reliable indicator of future performance. Ratings, awards or investment returns are only one factor that you should consider when deciding how to invest your super.
3. Money magazine awards are solely a statement of opinion and do not represent a recommendation to purchase, hold or sell this product, or make any other investment decisions. Ratings are subject to change. Go to www.moneymag.com.au for details of its ratings criteria.
4. QInvest Limited (ABN 35 063 511 580, AFSL 238274) is a separate legal entity responsible for the financial services it provides. Eligibility conditions and advice fees may apply. Refer to the Financial Services Guide (pdf) for more information.
5. SuperRatings Fund Crediting Rate Survey, June 2020. SR50 Balanced Index (60-76). Past performance may not be a reliable indicator of future performance. QSuper’s Accumulation account, Balanced option only, ranked eight over ten years to 30 June 2020. Based on cumulative returns compounded annually after fees and taxes excluding fixed administration, contribution, switching fees and insurance premiums. SuperRatings does not issue, sell, guarantee, or underwrite this product. Ratings, awards or investment returns are only one factor that you should consider when deciding how to invest your super. Go to superratings.com.au for details of its ratings criteria.