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Market volatility and how it affects your super

Global sharemarkets have recently experienced extraordinary levels of volatility. In fact, Friday 10 October was the second-worst one-day fall experienced on the Australian market since 1987.

From its high around one year ago, the ASX 200 is down by around 40% (as at 10 October 2008). For details on some of the issues that have caused these events, please see the article, 2008 proves a challenging investment year.

The UniSuper investment team continues, as is its normal practice, to tightly manage the asset allocation and liquidity of each investment option offered to members.

Diversification offers some protection

Importantly, all of UniSuper’s Pre-Mixed investment options operate using a strategy of diversification across various assets. This means that headline falls quoted in media reports will not necessarily be reflected in the performance of individual investment options, as the holding in particular asset classes will differ for each option.

Although UniSuper cannot offer members specific advice about the suitability of particular investment options or their future performance, we encourage members to set a strategy that is based on the timeframe they intend to invest in, and to stick to this for the long haul, or until such time there is a change in their personal circumstances.

A global response to a global issue

One encouraging sign on the global investment front is the emergence of a co-ordinated approach to stabilising financial markets by governments and central banks around the world. Signalling more action, we note the special meeting of the G20 – the world's 20 largest economies, including Australia – occurring in Washington this weekend (11-12 October 2008).

Regardless of the outcome, UniSuper’s investment team is committed to making prudent investment decisions when it comes to managing the super and pension savings of its 420,000 members.

We encourage members to log onto the Investment News section of the website to access more information as it becomes available.

 

Updated 7pm, 10 October 2008

 

Disclaimer:

This information is general information only and is not intended to be advice. It has been prepared without taking account of your objectives, financial situation or needs. Before deciding to acquire or hold an interest in any UniSuper product, you should consider whether it is appropriate for you and consider the relevant product disclosure document, which is available from your employer or UniSuper.

Issued by: UniSuper Management Pty Ltd ABN 91 006 961 799 Australian Financial Services Licence No. 235907 Level 37, 385 Bourke Street, Melbourne VIC 3000 UniSuper Helpline: 1800 331 685.

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