“We believe in, and are sticking with, the long term investment structure we have in place.
“Following strong returns across many investments, now is not the time to over-complicate an investment strategy. As we’ve said before, it is time in the market, not timing the market that makes the difference for long term investors. Your superannuation is a long term investment.
“For all our members and especially those approaching retirement, calling the Qantas Super Helpline and speaking to an adviser can help you focus your personal financial strategy, and give you confidence in your financial future.”
The Aggressive option has been really a strong performer over the past 12 months, and indeed returns over the past five years have been great.
But our investment objective for the Aggressive option is to exceed CPI by at least 5% p.a. over 10 years. It has delivered 4.8% p.a. over the last 10 years, which is under our objective. This result reflects the severe negative impact of the global financial crisis (GFC) on financial markets. The GFC’s lowest point was March 2009, so the Aggressive option’s 10-year returns will be impacted until March 2019.
The other options which have 1, 3, 5 or 7 year time horizons have come out the other side of the GFC.
Cash rates continue to be flat because the Reserve Bank of Australia’s focus has been on balancing easier monetary policy (ie lower interest rates) to stimulate economic growth, while conscious of the level of household debt in the Australian economy.
We haven’t had an interest rate hike in Australia for a few years. But in the US, cash rates rose by three quarters of a percent to 1.5%, and are expected to continue to rise this year.