After a somewhat difficult December 2018 quarter, investment markets have had a solid start to 2019, rebounding and making strong gains in the March quarter.
With our portfolios designed to both cope with market volatility during difficult periods and capitalise on gains during positive periods, this rebound delivered significant growth across the board for Qantas Super and contributed to healthy returns for the year and three years to 31 March 2019 – which is illustrated in the chart below.
Performance for super accounts
As at 31 March 2019 – all returns are per annum and after investment fees.
- 1 year
- 3 years
Past performance is not a guarantee of future performance.
According to Qantas Super investment manager Chris Grogan, the market’s rebound from one quarter to the next highlights the importance of taking a long-term view when it comes to investing your super.
While it may be tempting to change your strategy when you see share markets falling, it can often make more sense to either stay invested or consider investing more. By switching in a downturn, you risk selling out at a time when prices are low, rather than taking advantage of price falls to profit when markets recover, as they have this quarter.
“If you stick with your long-term plan when the market falls, you give yourself the opportunity to reap the rewards when the market rebounds,” Chris explained.
That is why Qantas Super implements a well-diversified investment approach where the investment time horizon reflects the asset allocation of the investment option.
Your investment options are meeting their long-term objectives
As at 31 March 2019 – all returns and objectives are per annum and after investment fees.
|Investment option||Return objective||Actual return||Return objective||Difference|
|Glidepath: Take-Off||CPI +5% p.a. over 10 years||10.3% (3 year p.a. return)||6.8%||+3.5%|
|Glidepath: Altitude||CPI +4% p.a. over 7 years||8.7% (3 year p.a. return)||5.8%||+2.9%|
|Glidepath: Cruising||CPI +3.5% p.a. over 6 years||8.0% (3 year p.a. return)||5.3%||+2.7%|
|Glidepath: Destination||CPI +3% p.a. over 5 years||7.1% (3 year p.a. return)||4.8%||+2.3%|
|Aggressive||CPI +5% p.a. over 10 years||9.4% (10 year p.a. return)||6.8%||+2.6%|
|Growth||CPI +4% p.a. over 7 years||8.0% (7 year p.a. return)||5.9%||+2.1%|
|Balanced||CPI +3% p.a. over 5 years||5.8% (5 year p.a. return)||4.8%||+1.0%|
|Conservative||CPI +2% p.a. over 3 years||5.5% (3 year p.a. return)||3.8%||+1.7%|
|Cash||Bloomberg AusBond Bank Bill over 1 year||2.0% (1 year p.a. return)||1.7%||+0.3%|
- Glidepath: Take-OffReturn objectiveCPI +5% p.a. over 10 yearsActual return10.3% (3 year p.a. return)Return objective6.8%Difference+3.5%
- Glidepath: AltitudeReturn objectiveCPI +4% p.a. over 7 yearsActual return8.7% (3 year p.a. return)Return objective5.8%Difference+2.9%
- Glidepath: CruisingReturn objectiveCPI +3.5% p.a. over 6 yearsActual return8.0% (3 year p.a. return)Return objective5.3%Difference+2.7%
- Glidepath: DestinationReturn objectiveCPI +3% p.a. over 5 yearsActual return7.1% (3 year p.a. return)Return objective4.8%Difference+2.3%
- AggressiveReturn objectiveCPI +5% p.a. over 10 yearsActual return9.4% (10 year p.a. return)Return objective6.8%Difference+2.6%
- GrowthReturn objectiveCPI +4% p.a. over 7 yearsActual return8.0% (7 year p.a. return)Return objective5.9%Difference+2.1%
- BalancedReturn objectiveCPI +3% p.a. over 5 yearsActual return5.8% (5 year p.a. return)Return objective4.8%Difference+1.0%
- ConservativeReturn objectiveCPI +2% p.a. over 3 yearsActual return5.5% (3 year p.a. return)Return objective3.8%Difference+1.7%
- CashReturn objectiveBloomberg AusBond Bank Bill over 1 yearActual return2.0% (1 year p.a. return)Return objective1.7%Difference+0.3%
As Glidepath was established on 1 October 2015, only three year returns are shown for these options. Past performance is not a guarantee of future performance.
You’re in the pilot’s seat. The key to being confident is making sure your strategy is right for you, and focusing on how you are progressing towards your destination, rather than being distracted by the inevitable ups and downs along the way.
What’s behind the numbers?
Want to know the stories behind the numbers? We had Chris talk us through the latest market activity and what’s on the horizon:
Thinking about switching your investment options?
A Super Adviser can help you assess what option is right for you based on your unique situation and goals. You can speak with an adviser over the phone or face to face at no additional cost.