Super fund that’s weathering coronavirus storm

QUEENSLAND'S biggest super fund is riding out the coronavirus pandemic better than most other pension funds, according to the latest figures.

QSuper, which manages $110 billion on behalf of Queenslanders, says its balanced fund declined 7.03 per cent in March and 6.32 per cent over the first three months of the year.

According to estimates from leading research house SuperRatings, the median balanced fund fell 8.9 per cent in March and is down 10.0 per cent over the quarter.

Australia's benchmark index ASX 200 ended the first quarter of the year nearly $500 billion poorer, down 24 per cent, after falling from a market capitalisation of $2 trillion down to $1.56 trillion.

Charles Woodhouse.
Charles Woodhouse.

 

QSuper chief investment officer Charles Woodhouse said that despite the ongoing market volatility, QSuper's balanced investment option finished the quarter as an industry leader in investment performance over both the short and long-term.

"Superannuation is a long-term investment and it's the long-term returns that investors should be focused on," said Mr Woodhouse. "Strong consistent returns year on year over many years are important to achieve a comfortable retirement.."

 

He said QSuper's investment strategy focused on broad diversification with the objective that no single allocation - or single event - could terminally impact return outcomes.

"An investment strategy that can smooth out the impact of market volatility for members over the long-term is more important now than it has ever been post the Global Financial Crisis," he said. "The reality is that short-term low or even negative returns are an expected part of a long-term investment portfolio."

Mr Woodhouse said that while super funds had posted negative returns this quarter due to the impact of the coronavirus, well diversified funds have been able to better protect their members' retirement savings.

Despite this quarter's market volatility, QSuper was one of only three funds to post a positive investment return for the year.

QSuper long-term strategy of investing in blue-chip government bonds is allowing it to counter the stock market wipe-out sparked by the coronavirus epidemic.

Originally published as Qld super fund that's weathering coronavirus storm



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