Investment update: Russia and Ukraine crisis

The ongoing events in Ukraine are deeply concerning, and we are hoping for a peaceful and swift resolution to the war.

In the meantime, as investors responsible for your retirement savings, we are closely monitoring the situation and its impact on share markets.

As you may be aware, this year has already been volatile for investors, with a big drop in US-based technology stocks dragging down performance in January, and rising inflation tipped to see faster-than-expected increases in interest rates. The conflict in the Ukraine has added to these existing investor complications, but we are confident our investment strategy leaves us well placed to weather these events and produce strong, long-term results for your super.

Has there been an impact on returns so far?

So far this year monthly returns for our super and pension Balanced options have been slightly negative. While this is never happy news for investors, it is nothing to be alarmed about. These returns are well within the normal parameters of investment cycles. Investing will always come with risk, with the aim of an ultimately larger reward.

While the events in Ukraine are certainly disturbing on a humanitarian level, it may be surprising to learn there is a long history of major share markets being resistant to nonfinancial geopolitical events, including wars. In fact, US equities have already trended higher than they were pre-invasion. Financial events such as the Global Financial Crisis are more likely to take deep chunks out of the share market with slower recoveries.

Does First Super have any Russian holdings?

First Super’s investment options have zero direct exposure to Russia. We do have small indirect exposure through three of our investment managers.

What we’re doing

We will keep monitoring the situation in Ukraine. At First Super we have a long-term investment strategy in place to navigate members’ money through hard times and help you achieve a dignified retirement. We are confident in this long-term vision, despite the uncertainty of current geopolitical events.

To find out more about how First Super’s investment options are allocated, visit our Investment options webpage.

Should you take any action?

As always, we’d strongly suggest getting in touch with us before you make any changes to how your super is invested. Any time you move your balance directly after market downturns you risk crystallising any losses, rather than achieving the protection you were after.

Need help?

To speak to us about your investment choice, call the Member Services Team on 1300 360 988.

If you need more detailed advice, they can put you through to our Financial Advice Team*. This type of advice is a benefit of membership so there will be no extra cost to you.

* First Super financial planners are authorised representatives of Industry Fund Services Limited (ABN 54 007 016 195, AFSL 232514).

Past investment performance is not a reliable indicator of future performance.