The AvSuper Team and Trustee extend our sympathies to the Japanese people who are dealing with the catastrophic events of the last week under extremely difficult conditions.
As the world continues to experience what seems like an unabating stream of natural disasters in recent months, we are receiving member requests for more information about the likely economic impact of these disasters, including on their super.
While investment markets in Australia and globally have reacted very negatively to these events this week, AvSuper’s overall exposure to Japanese investment assets is relatively small, currently less than 3% of the Fund overall. The majority of this exposure is currency, equities and bonds with a very small property exposure and we hold no long term concerns at this stage for individual holdings. While some of our fund managers’ teams live or work in Japan to manage these assets for us, we have been able to ascertain that none have been significantly disrupted as they were not located in the worst affected areas.
Clearly, the pricing volatility in global markets seen this week demonstrates current uncertainty regarding the extent of the risks posed by Japan’s disaster. The AvSuper Investment Committee continues to watch the situation carefully and expects that as the situation and the economic outlook becomes clearer, market volatility will subside.
If you have any queries about AvSuper’s investments in general or our Japanese exposure in particular, please contact us.