BUSSQ invested for long term growth

The financial year 2022-2023 was a roller coaster ride for investment markets. Tough challenges arose as the global economy suffered from lingering COVID-19 shutdowns, a war in Ukraine, rising cost of living, and banking turmoil in the US and Europe. As a result, share markets went through some wild ups and downs.

Despite this volatility, BUSSQ’s Balanced Growth Super option returned 8.81%, and our Balanced Growth Income account option returned 8.53% for the financial year to 30 June 2023^.

To see BUSSQ's end of financial year returns for all options download our 2022/23 Annual Report.

What happened in the markets?

Over the year the global economy experienced all sorts of chaos. The pandemic continued to cause havoc, while the war in Ukraine led to soaring energy costs and worldwide supply issues. These factors contributed to rising inflation, which put pressure on household budgets and businesses.

As a result, central banks were forced to raise official cash rates in an effort to combat inflation. The Reserve Bank of Australia (RBA) went all in, raising the cash rate 12 times in just 13 months, seeing it jump from 0.1% to 4.1% as at 30 June 2023. The significant increase in interest rates had a negative impact on consumer confidence, particularly for those with a mortgage.

On top of this a regional banking crisis unfolded in the US and spread to Europe, culminating with the bailout of three US regional banks and the merger of Credit Suisse with UBS in Switzerland. This led to further volatility in markets, particularly panic in the broader banking sector where there were no real issues other than fear and a lack of confidence. Central banks and governments responded positively however, by providing liquidity and deposit guarantees.

Future outlook

Looking ahead it’s expected that market volatility will continue. There is potential for more interest rate rises, putting more pressure on the cost of living and there's still a range of geopolitical risks that could potentially upset the economy and financial markets.

To mitigate risk around market volatility, BUSSQ maintains a diverse portfolio of investments within our pre-mixed options. We also actively manage our investments, closely following the market to buy, sell, or hold shares where suitable, in our members’ best interests.

Focusing on the long term

Investment markets naturally fluctuate, and it’s important to remember that super is a long term investment.

So, staying patient and committed to your super investments is key. For example, $50,000 invested in our Balanced Growth Super option 20 years ago would be worth $216,781^ as at 30 June 2023. That’s four times the initial amount, despite major financial events including COVID-19 pandemic, Global Financial Crisis, Dot.com bubble and 9/11.

The long term performance of our Balanced Growth Super option is proof that compounding can work wonders. If you're investing for the long term, BUSSQ can help achieve your financial goals.

Have questions or after advice?

If you have any questions about our latest performance, your super, how our investments work or want some advice^▷, simply call us on 1800 692 877 or email super@bussq.com.au.

Finally, thank you to all our members for your continued support.