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Coronavirus Market Impact

The Coronavirus is currently impacting investment markets. To stay fully informed regarding how Statewide Super are managing current events for our members, please stay tuned to this page for commentary from our investment team.

Last updated 18 May 2020

With markets starting to recover from the COVID-19 impacts felt earlier this year, Statewide Super’s Chief Investment Officer, Con Michalakis, foresees a continued staged return, both locally and globally. Watch this video for his brief update on the Fund’s current position.

Key points:

  • The investment markets are seeing happier times with the economy slowly opening up and life resuming some sort of normality
  • It remains uncertain what sort of recovery the markets will follow, however, it is likely the recovery will be staged, both locally and globally 
  • Super is a long-term investment and it is good to stick to your long-term investment strategy

 

  • Coronavirus market update 22 April

     

    Last updated 22 April 2020

    As the COVID-19 curve slows, there is a lot of noise in the media regarding industry super fund’s diversification and liquidity. In this video our Chief Investment Officer, Con Michalakis provides a brief update on Statewide Super’s current position.

    Key points:

    • Diversification is an investment risk strategy used to lessen your exposure to market drops by investing in a diverse range of assets.
    • Depending on the risk profile, we have broad diversification in terms of asset allocation – cash, fixed income shares, property, infrastructure, absolute returns strategies, venture capital and credit, to a name a few.
    • These assets behave differently to the stock market, we can see just in that one month of March, they don’t fall in line with the share market 1 for 1.
    • Statewide Super has sufficient cash and fixed income, from the lower risk options right up to the high risk options
  • Coronavirus Market Update 9 April 2020

     

     

    Last updated 9 April 2020

    The Coronavirus is continuing to impact investment markets, industries and the economy worldwide. In this update our Chief Investment Officer, Con Michalakis discusses the following key points:

    • Markets are up since the initial fall, however is it too early to call it a turnaround
    • An overview of investment diversification and the possible benefits of a diversified option
    • The Coronavirus curve is flattening, although what does this mean for the economy in the coming months
    • What Statewide Super is doing to manage liquidity to meet redemption needs
  • Coronavirus Market Update 31 March 2020

     

    Last updated 31 March 2020

    Our Chief Investment Officer Con Michalakis provides an update as we close out the month of March. His key takeouts are:

    1. Health is our number one priority as a society – we need to keep up the social distancing.
    2. The social distancing remedy is impacting economies and jobs. But he welcomes the government’s wage subsidies and jobs guarantee.
    3. Confidence – or lack thereof – (noting the stimulus and lowering of interest rates will help this) 
    4. Diversification continues to lessen the impacts of the markets, and we are managing liquidity.
  • Coronavirus Market Update 18 March 2020

    Last updated 11:45am, 18 March 2020

    Statewide Super understands that its members are going through a very uncertain time in the wake of the unprecedented Coronavirus pandemic. To minimise the impact of the virus, there will be social distancing and isolation. Statewide Super is committed to continued service, noting we will look at doing some things differently to maximise the safety of our members and staff. 

    As a fund Statewide Super recommends those who are concerned with market fluctuations to seek personal guidance, which should be provided by a Financial Planner. To speak with a planner please call 1300 65 18 65 or fill in the request form here.

    Here are the latest key points provided by our Chief Investment Officer, Con Michalakis.

    1. While global economies are looking like they will go into a recession, a good policy response of lower interest rates and fiscal stimulus should help the severity.
    2. For those young enough to carry higher risk, you will likely see better times. For those that are old enough, the very good times we’ve experienced - where your money has significantly increased over the last ten years, the market is now taking a bit back.
    3. Statewide Super reassures its members that retirement saving is a long-term goal. For those less than 55 this is case of riding through the markets and being well-diversified.
    4. Diversification is working. Diversification is the process of splitting your money across a range of investments and asset classes to receive returns from different sources. It also helps ensure if things go wrong with one business or asset class, you are at less risk.
    5. For those who are older and using bucketing, conservative or conservative balances the 25-30 per cent fall in the market is only a 2 to 7 per cent fall in low-risk multi-sector options. Diversification is working. Share market swings are only a small part of a lower risk portfolio.
    6. We have positive cash flow and the fund is running well in these uncertain times
  • Coronavirus Market Update 11 March 2020

    Last updated 3:06pm, 11 March 2020

    The Coronavirus is continuing to impact investment markets, industries and the economy worldwide. Here are the latest key points provided by our Chief Investment Officer, Con Michalakis.

    1. Be careful reacting to short term market movements. On Tuesday 10 March 2020, the Australian share market was up approximately 3%* following a very large fall on Monday 9 March, 2020.
    2. The market is predictably volatile as it struggles to deal with the uncertainty of the Covid-19 virus (Coronavirus).
    3. Policy makers around the world are deciding to enact policies, like lowering interest rates and putting in a fiscal stimulus to support the economy.
    4. We expect our well diversified portfolios to cushion some of the large falls in the market.
    5. Last and most importantly, stick to your retirement plan. If you're considering making a change to your investment options or are concerned as to how the current market may impact your retirement savings, the Statewide Super team are here to help. It's always important to be fully informed before making any financial changes, so don't hesitate to contact us on 1300 65 18 65 to discuss your options.
  • Coronavirus Market Update 28 February 2020

    Last updated 2:00pm, 28 February 2020

    Our Chief Investment Officer, Con Michalakis, knows all too well the impact that events such as the Coronavirus can have on investment markets and the economy. Here are his key points for Statewide Super members to be aware of:

    1. Statewide Super is well diversified across conservative, conservative balanced, active balanced, MySuper/Growth investment options and to a lesser extent High Growth. Therefore the current changes in the investment markets should have much less significance to members' accounts. However, it is inevitable that we will have a negative month to date return.  
    2. Statewide Super has not bought or sold any of the asset classes this week. 
    3. All things being equal Statewide Super may buy on further market weakness, having sold in January.
    4. Most importantly - stick to your long term plan and try to avoid the “noise” in the market.

    Investment returns can go up and down and are not guaranteed. All investments have risk, and past performance is not a reliable indicator of future performance. For more information on risks associated with investing, consider the “Risks of Super” and “How we invest your money” booklets or call 1300 65 18 65. 
    The information provided contains general advice which does not take into account your specific objectives, financial situation or needs. Before investing, you should consider the appropriateness of this general advice with regard to your personal circumstances. You may also wish to obtain independent financial advice. This article is not intended to be, and should not be construed in any way as, investment, legal, or personal advice.
    Statewide Super holds an Australian Financial Services Licence (AFSL) that allows it to provide both general and personal financial advice. For further information and a copy of the applicable Financial Services Guide, visit www.statewide.com.au or call 1300 65 18 65.