Super performance.
The thing we all want to know about superannuation is performance. But what does it really mean? How do you know if you’re on a good wicket? Well let’s just say it comes down to much more than the latest good-looking (or otherwise) market figures.
Market performance, it’s a cycle
Markets behave in cycles. As you can see, after a period of good performance, a downturn occurs.
It pays to understand two key characteristics when thinking super. First is that it’s a long-term investment. Secondly - and most frustratingly at times! - is that markets behave in cycles, so that some years you may get incredible results, and other years, well it’s all you can do to not look the other way.
The reason why the market fluctuates is due to all sorts of factors. In 2008 there was the sub-prime mortgage issue, in 2000 the dot.com crash, and in 1987, Black Monday. So during volatile times, it’s important to frame fund performance in the bigger picture. If the figures looked great a few years prior to a market downturn, chances are fund performance will revitalise in the next cycle pick-up period.
Virgin Super performance: October – December 2009
To see how the broader markets have fared, have a look at our market reports.
| October – December 2009 Market Reports | |
|---|---|
Australian shares report
Oct-Dec 09
(391kb) |
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International shares
report Oct-Dec 09
(433kb) |
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Property
report Oct-Dec 09
(398Kb) |
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Cash and fixed
interest report Oct-Dec 09
(398kb) |
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