Investment update October 2020

November 19 |  2 min read

The global pandemic has created heightened levels of concern around asset valuations, especially for infrastructure and property assets. However, while current conditions are not the normal for modern times, are they more uncertain than “normal”?

Some assets are more sensitive to economic growth levels than others. For example, the value of seaports depends on shipping volumes, which is highly sensitive to GDP growth. In contrast, electricity grids and oil pipelines are typically “take or pay” arrangements where one party has the obligation of either taking delivery or paying a specified amount, so there is some certainty there. The value of toll roads depends on the long-term traffic growth expectations, but critical commercial routes will have less associated risk. On office property, there is likely to be a shift in the approach to office work, with less density and fewer people at work. But the valuers of office buildings have already downgraded asset values to allow for the uncertainty around this.

We know that people will not stay in lockdown no matter what, not indefinitely. It’s human nature to want to move around, to socialise and to travel. Mobility data in the US and in Europe has rebounded despite the number of coronavirus cases and deaths. The future is uncertain and always has been. Throughout time we have heard commentators describe prevailing conditions for investing as “particularly uncertain”. This year has turned out very differently than we expected last year. So, while we have a lot of data already about the impact of the pandemic on economies and people’s behaviour, many aspects of asset valuations are less of an unknown. To paraphrase Donald Rumsfeld, the impact of unknown unknowns is more difficult than known unknowns, but the investment markets have to deal with this every year as they look forward.

November 19 |  2 min read

Must Reads

Feature, Fund news, Investments, must read  |  8 min read

US Inflation

It has been over a year since COVID-19 ended one of the longest equity bull markets in US history. Governments and central banks responded quickly and, as a result, global equity markets have not only recovered but some have hit record highs.

Feature, Fund news, Investments, must read  |  2 min read

Investment update March 2021

Auction clearance rates have recently reached elevated levels and this has coincided with very strong growth in house prices across Australian capital cities.

Feature, Fund news, Investments, must read  |  3 min read

Investment update Sept 2020

September saw positive returns as investors continue to adjust to the ‘new normal’ of the Covid-19 affected world.

Investments, must read  |  3 min read

The importance of diversification

The COVID-19 health emergency has already taken a terrible toll around the globe, with the impact on the economy significant. Many are out of work, and with falling financial markets...

Build a better future for you and your family

Invest in your future self

Sustainable products, quality advice, education and of course, low fees.

You have options when it comes to saving in your super and drawing from it on retirement. Find out which of our retirement products is most suited to you.

The Latest

General, Investments  |  4 min read

Portfolio defensiveness – Part 2

Diversified bonds is an asset class that typically provides defensiveness during unfavourable investment environments.

Feature, General, Investments  |  3 Min read

Portfolio defensiveness – Part 1

Vision Super has a wide range of multi-asset class investment options for members. When designing these options, one consideration is ensuring an appropriate level of defensiveness given the investment objectives of the option.

General  |  4 min

Investment Update – June 2021

Despite the uncertainties associated with Covid-19, most of our investment options have seen strong returns in 2020/21.

Already a Vision Super member?

The great news is you can now open your pension account online through the secure site.

Not a Vision Super member?

You’ll just need to open a Vision Personal account first and then you can transfer across to a Vision Super pension.