After delivering strong returns in the first half of the 2023 calendar year, investment markets have experienced volatility. 

It’s not unusual to see some cyclicality in investment returns.  In other words, after periods of strong investment performance, such as the first 6 months of the calendar year, we often see periods of weaker performance, as markets take a bit of a breather from the previous highs.

Our portfolios are currently somewhat cautiously positioned because we’ve been concerned about the potential for inflation and geopolitical risk.  Our target allocations to Australian equities are slightly lower than our long term targets while our target exposure to Government Bonds and Foreign Currency is slightly higher than usual.   

In the early part of October, we've seen a tragic escalation of geopolitical risks in the Middle East.  While the initial investment market reaction to these events has generally been muted, we are closely monitoring developments, and believe this is another reason to maintain a level of caution in our portfolios.

It’s important to note that returns over a twelve month period (to September 30) are strong – including almost 11% for the MySuper Growth option and almost 19% for the MySuper International Share option, with the Property option being the one exception, with a small negative performance.

See our latest market update below for more information on investment markets and returns. 

Investment market update September 2023

Super is a long term investment

While your super may be affected by investment volatility in the short-term, it is important to keep in mind that super is a long-term investment and over the long-term, there tend to be many more market ups than downs. This means that although you may see some negative returns over the years your money is invested, your super balance is likely to be much higher than it was a few years' ago depending on the option you are invested in.

As an example, you can see in this chart below for TelstraSuper's Balanced option:

Our investment teams prepare for volatility

The diversified nature of our investments mean that we've been able to ride out bumpy markets and still secure strong investment returns for our members in the long run. While your balance may decrease in the short term, we are still well on track to meeting our long term investment objectives.

Avoid making knee jerk reactions

You may – understandably – be tempted to switch investment options when you see the market drop, however you should consider your long-term investment objectives and avoid making panicked decisions. Switching at the wrong time could mean you miss out on gains when the market bounces back. 

For example, investment markets surged after the drops at the start of the COVID-19 pandemic. People who panicked and switched to cash following the initial market falls may have missed out on the recovery that came after.

Read more about lessons from COVID-19 market volatility

Help is here if you need it

If you're considering making a change to your super investments, you should speak to a financial adviser. TelstraSuper Financial Planning can discuss your investment objectives and give you advice about your TelstraSuper account over the phone at no additional cost – it’s part of your membership.

What is TelstraSuper doing with their investments to minimise the impact?

We build our portfolios to generate long-term returns in line with the investment objectives for each Option. We try not to over-react to short-term events. We expect heightened volatility to occur from time to time, and have taken the following measures:

• We don’t put all our eggs in one basket. Our options are diversified across many asset classes in many locations. Different markets and assets react in different ways so the risk is spread.
• Progressively over 2021, we started to adjust our portfolios towards a more conservative asset allocation stance, as equity markets rose and we became aware of rising potential risks. We did this by selling part of our share portfolios and holding more cash. This action has thus far delivered a measure of protection against the recent market volatility.
• All of our share portfolios are actively managed. Our professional fund managers build our portfolios by identifying those shares that are expected to deliver the best outcomes given the current and expected future economic environment. Although our portfolios haven’t escaped negative returns, many of our fund managers have done better than the market during periods of volatility.

This period of volatility is coming after a period of strong returns, which saw TelstraSuper deliver some of the strongest returns to 30 June 2021 in our 31 year history. The year to 30 June 2022 was a moderately negative year for our diversified investment options, but so far (to mid March) the 2023 financial year has been positive for our diversified options, despite the recent falls in markets.

View recent returns