Market falls result in a challenging quarter for investments
The March 2022 quarter was challenging for investments. With share and bond markets weakening globally, our High Growth, Balanced and Conservative options each recorded returns of around -3% for the three months to 31 March 2022, but continued to achieve longer-term investment objectives. View our latest
quarterly investment updateOpens in new window
for returns over various timeframes to 31 March 2022.
Markets fell in the March quarter primarily in response to fears of interest rate rises, which negatively impacted the normally ‘safer’ Conservative option. A spike in reported inflation around the world, particularly in the US, raised expectations that central banks would accelerate plans to raise interest rates. This caused a fall in bond prices, as investors demanded higher yields in anticipation of higher interest rates. Australia’s government bond market index fell more than 6%*, with the global bond market down 5%.*
Parts of the global share market also saw a sell-off, especially in the Information Technology sector, which had made strong gains in the previous two years. The war in Ukraine caused further market volatility, as it added to supply restrictions and inflationary pressures in the energy and food sectors. The global share index lost just about 5%* in value. Australia’s share market was an exception to the global trend, delivering a small gain thanks to its concentration in mining companies. Other APSS asset segments, including private equity, alternative credit and real assets, provided more stability in the volatile conditions and lessened the overall negative impact on APSS crediting rates.
The Cash crediting rate meanwhile remained flat over the March quarter, as the Reserve Bank of Australia kept the official interest rate at 0.10%.
*Source: Willis Towers Watson
Federal Budget 2022-23
The Federal Government's 2022-23 Budget was handed down last night (Tuesday 29 March). The extension of the temporary reduction in superannuation minimum drawdown rates for pension/income accounts was the main superannuation-related measure, while several other measures due to come into effect in 2022 were recapped.
Australian Retirement Trust has prepared a summary of the key superannuation aspects, including a summary of the expected economic impact by Australian Retirement Trust Chief Economist Brian Parker.
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Australian Retirement Trust issues Transfer guides to APSS members
To help you understand various aspects of the merger, Australian Retirement Trust has today issued Transfer guides to APSS members. You can download your Transfer guide by visiting Australian Retirement Trust's dedicated online web portal for APSS members.
Australian Retirement Trust is also running a series of webcasts to go over this information.
Click below to find your link(s) to navigate to web portal information and the webcast(s) relevant to you.
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Australia Post Super Scheme to merge with Australian Retirement Trust
The Australia Post Superannuation Scheme (APSS) today announced its decision to merge with Australian Retirement Trust, the $230-billion/20-million member fund formally created at the start of this week through the merger of Sunsuper and QSuper.
Announcing the news to members at the APSS Annual Members’ Meeting today, the Trustee’s Independent Chairman, Mark Birrell, said the decision follows a very thorough and careful review, which has firmly established that proceeding with this merger will be in the best financial interests of APSS members, providing more services and choices, while continuing to safeguard members’ valuable existing APSS entitlements. He also provided an overview of the key detail that members can expect to receive over the coming week in their Significant Event Notices, which are being mailed out to members tomorrow, along with more online information to be published
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Sunsuper and QSuper merge to become Australian Retirement Trust
Sunsuper and QSuper have today officially merged to become Australian Retirement Trust, one of Australia’s largest super funds, taking care of over $200 billion in retirement savings for more than two million members. Australian Retirement Trust is a fund that works for members, not shareholders, working in their members’ best interests and commiting to returning profits to them as lower fees and better services.
You can learn more at the
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where you can find a
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with answers to frequently asked questions.
As mentioned in the
last edition of your member newsletter InsightOpens in new window
, Australian Retirement Trust will now become the fund that the APSS will merge with (i.e. if the APSS Trustee proceeds with the merger that we have been exploring).
Your latest Insight member newsletter
In March 2021, we announced we had entered an agreement with Sunsuper to explore a potential merger this year, in 2022. Sunsuper itself has progressed towards a merger with another major fund, QSuper, and announced last December that the new fund would be named Australian Retirement Trust, becoming one of the biggest super funds in Australia with over $200 billion in combined assets. As we have stated, our merger with Sunsuper (which is now expected to be with Australian Retirement Trust) will only proceed if confirmed to be in the best financial interests of APSS members. Like an aircraft being prepared for flight, the fine details must first be thoroughly checked and tested and the route precisely mapped before announcing take-off! Read about this and more in the latest edition of your member newsletter Insight.
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