Coronavirus (Covid-19) Investment Update 5 March 2020
05 March 2020
The impact of the Coronavirus (COVID-19) outbreak on investment markets has led to a significant level of global uncertainty, with high equity market volatility experienced both domestically and overseas. Like all superannuation funds, this has meant BUSSQ has experienced short term negative returns over this recent period.
Last week, we saw share markets across the world fall by between 10% to 15%. Over the same time period, and for context, our default investment option (Balanced Growth) declined by 3.69%. This relationship between the performance of equity markets and our diversified Balanced Growth option is important for members to understand and is a result of:
- Our commitment to provide diversified options where not all of our holdings are invested in volatile markets.
- Our use of strategies where possible to provide some protection against sharp drops within share markets, like an insurance policy.
- Our use of active investment management means we are closely following the situation daily and acting where possible.
Many of our members experienced a decrease in the value of their accounts last week and understandably this can make people a little nervous. We would like to assure members that BUSSQ is here to assist with any queries about the current situation and recommend concerned members seek financial advice before making any changes to their investment strategy.
BUSSQ remains alert but not alarmed and are also looking for investment opportunities to take advantage of during this current market volatility where possible.
This week we have seen some recovery on the back of central banks cutting interest rates to support economic growth. However, whilst this virus continues to dominate global news headlines, we do expect continued periods of high volatility, both positive and negative.
This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Before acting, you should review the relevant Product Disclosure Statement to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or seek independent advice from a properly qualified professional. Past performance is no guarantee of future performance. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201). BUSSQ owns Skylight Financial Solutions Pty Ltd (ABN 46 076 835 848, AFSL 450139), the company that provides financial advice to our members.