Members

As at January 2012

Problems in Europe continue to dominate the world share markets despite a mix of good and bad news in recent months.  The distinct lack of investor confidence in the sustainability of any solutions pulled the markets down yet again. The imbalances that have been weighing on markets have remained in place.

Locally, confidence was boosted briefly with consecutive interest rate cuts and the prospect of further interest rate cuts to come early in 2012. However, globally things are pointing toward another volatile ride in 2012, especially if there is a break up of the Euro-zone.

The Chinese economy slowed measurably in 2011, but this was largely engineered to bring inflation down to a more manageable level. The main risk factor for China is the disorderly collapse of the Euro and the subsequent impact on exports to Europe.

There are still significant risks associated with what happens in Europe and the impact on global confidence and economic growth, but Australia is still reasonably well placed to ‘weather the storm’.

Once again, it’s important to remember that a super fund’s investment performance will continue to change from year to year. While you can expect your super to grow over the long term, you still might experience some years of low and even negative returns. This is “normal.”

Should you wish to review your chosen investment option, please see the Member Investment Booklet.

If you need help to review your chosen investment option, please contact a Tasplan Customer Service Officer on 03) 6270 4826.