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Your super is designed with the long term in mind, aiming to support your retirement for decades to come. Our investment team continues to closely monitor global developments, including recent events in the Middle East, to carefully manage your super through changing market conditions.

History has shown that, despite major global events such as military conflicts, the Global Financial Crisis, and the COVID‑19 pandemic, members’ super accounts have managed to remain resilient through these challenges. In each instance, financial markets have recovered and continued to grow the value of members’ super over time.

How markets have reacted

Recent events in the Middle East have reminded us of how markets can react quickly when unexpected news happens. This is something we’ve seen before, and markets often settle down after the initial response.

  • Oil prices went up for a short while, since the area is important for global energy supply
  • Share markets dipped as investors took a cautious approach
  • Gold, which people often turn to in uncertain times, became more popular

These changes are normal and reflect the uncertainty at the start, but markets have shown in the past that they can recover and move forward.

Why energy matters so much

The Middle East is a key supplier of oil and gas for the world. There’s a narrow waterway called the Strait of Hormuz between Iran and its neighbours, and a lot of the world’s oil travels through it every day.

If shipping here is held up for a while, energy prices could rise further, which might make petrol and transport more expensive and affect the cost of living. The good news is this impact is often temporary, and markets usually adjust over time.

What oil producers are doing

Major oil producing countries are already working to reduce the impact. For example, Saudi Arabia and others in the region have started sending more oil to the global market. This helps keep supplies steady and prevents prices from rising too much.

What this means for members and investors

When it comes to your super, we know that world leaders and governments make decisions we can’t control. Instead, we focus on what we can do — carefully managing your super with your best interests in mind.

Our team is keeping a close eye on what’s happening and looking for events that might affect your super.

Your super is invested across a range of asset classes and regions, aiming for diversification.  Diversification is about balancing exposure so that if some areas face challenges, others may help offset the impact.

The bottom line

We remain focused on protecting your retirement savings over the long term. That means staying diversified and focused on what matters most — helping you achieve your glorious retirement. 

Important informationThis document has been prepared by IOOF Investment Management Limited (IIML) ABN 53 006 695 021, AFSL 230524 as Trustee of the IOOF Portfolio Service Superannuation Fund ABN 70 815 369 818 (Fund). IOOF Employer Super is a Division of the Fund. IIML is part of the Insignia Financial group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (Insignia Financial Group).  The information and commentary provided in this communication is of a general nature only and does not relate to any specific fund or product issued by an Insignia Financial Group entity. This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. You should read the relevant Product Disclosure Statement (PDS) and the Target Market Determination (TMD) and consider whether the product is right for you before making a decision to acquire or to continue to hold the product. A copy of the relevant PDS and TMD is available on the website at www.ioof.com.au or by calling us on 1800 913 118. Information is current at the date of issue and may change. Past performance is not a reliable indicator of indicator of future performance. The value of an investment may rise or fall with the changes in the market. An investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested. Actual returns may vary from any target return described and there is a risk that the investment may achieve lower than expected returns. Any opinions expressed constitute our judgement at the time of issue and are subject to change without notice. We believe that the information contained in this communication is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made at the time of compilation. However, no warranty is made as to their accuracy or reliability or in respect of other information contained in this communication. Any projection or forward-looking statement (Projection) in this communication is provided for information purposes only. No representation is made as to the accuracy or reasonableness of any such Projection or that it will be met. Actual events may vary materially. This communication is directed to and prepared for Australian residents only.