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Our response to recent market volatility

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Pushlished date icon Published on 27 Jun 2022

With recent market volatility, many are noticing fluctuations in their investment returns. Prime Super structures and monitors investments to manage short-term fluctuations and generate long-term growth.

Why are markets volatile?

There are some overarching reasons why markets have, once again, become volatile globally. Markets reflect the future outlook , and incorporate factors such as risks and uncertainties.

Some of these currently include the continuing effects of COVID-19, the ongoing conflict in Ukraine and subsequent sanctions on Russia, interest rate hikes, and increased inflationary pressures.

If you would like more detailed and up-to-date information about the investment environment, read our monthly investment update. You can also subscribe to our monthly newsletter to receive updates to your inbox.

Why does investing have risks?

To get a good long-term return, some risk must be taken. We manage a portfolio that has a mix of growth assets, which generally come with more risk (e.g. shares) and defensive assets, which are generally lower risk (e.g. cash). 

If we take no risk, we could miss out on market growth, but growth assets may deliver negative returns in the short term as share markets fluctuate. By balancing defensive assets with growth assets, and actively managing investment portfolios, we can overcome short-term fluctuations.

How does Prime Super manage market volatility?

We invest carefully and strive for sustained returns for all our investment options over the medium to long-term.

All our investment options balance risk and return and have a much broader outlook than just short-term movements. Our robust investment strategy is designed to ride out short term market fluctuations and generate long-term results, without taking on excessive risk.

As an active investment manager, the investments team at Prime Super is constantly monitoring the markets in terms of both returns, yields and future expectations to achieve long-term growth.*

Want to know more?

We have a team of super specialists who can talk to you about how market fluctuations could affect your super.

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*Past performance is not an indicator of future performance