News
17 August 2007
Investment market volatility
The investment markets are currently very volatile. We understand that some members may be concerned about this. For this reason we have prepared a brief explanation of the issue together with details about Vision Super’s position. While we can tell you what we are doing, we trust you will understand that the law does not allow us to give advice to members about what they should do without having regard to their personal circumstances.
The problem began in the United States where interest rates have gone up and the housing market has weakened. This has lead to an increase in bad debts in the “sub-prime” mortgage market for institutions that have granted mortgages to borrowers with a lesser ability to meet their repayments.
Concern about this issue has spread to other countries and affected other markets. It is causing volatility in investment markets both in Australia and around the world.
Vision Super provides members with a choice of 16 different investment options, each of which is invested for the long-term. Our long-term strategy recognises that there will be periods of volatility in the markets from time to time. Our strategy focuses on longer-term outcomes, not shorter-term events. Whilst past or current performance is no indication of future performance, the historical returns of Vision Supers’ investment options demonstrate that this approach has largely been successful*. Accordingly, we are not making any changes to our long-term investment strategy at this time.
* Performance tables are available by clicking here.
This information was current at the time of publishing. Vision Super believes the statements are correct and not misleading but we give no warranty in relation to them. Save for any statutory liability, we disclaim all liability for any loss or damage that may arise from anyone acting on these statements. All services and products detailed herein are subject to Australian laws that may change from time to time.
This information is not intended to act as financial advice. Remember, your circumstances and financial needs are unique. Before acting on the basis of anything contained in this document, you should consider whether it is appropriate to your needs and circumstances. You should obtain and read the relevant product disclosure statement before acquiring any financial product. We suggest you seek professional advice to make the best choice for your circumstances.
Vision Super Pty Ltd ABN 50 082 924 561 Australian Financial Services Licence 225054, RSE Licence L0000239 is the Trustee of the Local Authorities Superannuation Fund (R1000603) and the Vision Superannuation Fund (R1069938). August 2007.
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