Read our volatility fact sheet
A fact sheet that details current market volatility and how it could impact your super.
Volatility is a measure of potential uncertainty or risk associated with a market’s future performance, which can alter its value.
Risk can be created or increased through external triggers or events such as economic instability, supply and demand, international trade tensions and more recently a global pandemic.
The job of a super fund is to increase its members’ retirement savings through investing in different vehicles. Different investments have different levels of risk and exposure to volatility.
Higher risk/return investment options generally invest more in shares, infrastructure and property, while lower risk/return options invest more in cash and fixed-interest investments.
Members with super allocated to higher risk options will generally see larger swings in their returns as they have greater exposure to market movements.
One way to help ease volatility concerns is to diversify your portfolio across different asset classes which can help soften the impact of an unexpected market fall.
Cbus offers members a choice of diversified investment options that range from a high allocation to shares along with property and infrastructure, through to options that have higher allocations to cash and fixed-interest. Our default investment option for super members is the Growth (Cbus MySuper) option that invests around 70% in assets like shares, property and infrastructure. Members invested in the Growth (Cbus MySuper) option may see their account value moving up and down if there are big falls and rises in share markets.
For retired members our default Conservative Growth option invests around 50% in assets like shares, property and infrastructure. Members in this option would still see some movement in their account balance if there are big falls and rises in share markets.
Super is a long-term investment, so it’s important not to react to short-term market ups and downs.
Call us for advice
If you have any questions, or if market movements are making you concerned about where you’re account is invested and you’re considering switching investment options, Cbus Advice Services is available to call on 1300 361 784, at no additional cost for our members.
Read our Investment handbook
Read our Understanding risk fact sheet
This information is about Cbus. It doesn’t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions.
Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you.
Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262