Newsletter • Quarter 4 • 2024
WHAT ABOUT THE U.S. ELECTIONS? ARE MY SAVINGS SAFE?
After the recent U.S. elections, we understand that many members may be nervous about their retirement savings. Political events of this magnitude can indeed stir the market, but it can be difficult to identify the impact of an event like this.
- “Should I be worried about how the recent U.S. elections may affect my pension?” It is natural to be concerned, but remember that elections are just one of the many factors influencing investment markets. Our investment strategy is designed to withstand such events.
- “Can you not just move my investments to safer assets during uncertain times?” Market timing is extremely difficult. Moving in and out of the market can lead to missing out on potential gains and may not protect you against losses.
The principles guiding our investment strategy
- Our long-term approach aims to balance risk and reward.
- Regularly investing fixed amounts (as is typical with pension contributions) can reduce the impact of market ups and downs over time.
- A diversified investment portfolio can reduce the risks associated with any one event.
- Our investment strategy is designed with a long-term horizon in mind.
- We spread investments across various asset classes to reduce risk.
- We continually monitor and manage our portfolios to protect your investments.
- We prioritise steady, long-term growth over short-term gains.
Where does this leave you and your savings in the Woolworths Group Retirement Fund?
The trustees and their investment committee follow a solid process for determining the Fund’s investment strategy. It should be comforting to know that they put much effort into constructing diversified portfolios designed to be resilient over a range of market conditions.