At Australian Unity Investments, we understand your concerns about the current market volatility. Here we’ve taken some of your most frequently asked questions and provided comprehensive answers.
How is Australian Unity Investments faring in the difficult times?
Extreme volatility and the global credit crisis continue to rapidly change today’s investment landscape. More than ever, investors require innovative thinking and swift responses. Australian Unity Investments is meeting the challenge.
At AUI we create and source unique investment opportunities that have the potential to deliver better returns. Our approach is enterprising and original, but based on the solid foundation and trust of Australian Unity’s 165 years of sustained success.
Our structure works to the advantage of our investors. We have the flexibility and client focus of a boutique investment house, but as part of the wider Australian Unity Group, we enjoy the professionalism and resources of a major corporation. With over $5.2 billion in funds currently under management (as at 30 November 2008), our well-considered strategies are proving their worth.
AUI offers a range of successful mortgage and property investments that are managed in-house. We also partner with specialist investment managers to provide powerful investments covering fixed interest and Australian and international equities.
This distinctive partnership model means investors can access expert investment managers who focus on a specific asset class. They can also enjoy the support and resources of a long-established, mutually owned, member-focused organisation.
We do what we say we will.
Almost all investments have been negatively impacted by the financial crisis and major downturn of financial markets. AUI is highly focused on managing your investments to help you achieve the best outcome during this difficult period by:
1. Explaining things simply so you don’t have to waste time sifting through the jargon;
2. Doing what we promise - a “no surprises” strategy;
3. Having the best talent (many of whom are part owners of the business so their success is directly tied to yours) so you can always feel confident that you have right expertise; and
4. Being transparent, open and honest in our communication with you.
An effective investment approach.
The AUI approach to investing is simple but effective. We maintain our focus on bringing unique products to market and partner with talented fund managers who focus on what they do best – investing.
To ensure we remain in a strong position, we will continue to focus on the objectives for each of our funds and have conviction in our investment principles.
How important is advice in these uncertain times?
Whatever happens next – and no-one really knows what this will be – the short term outlook should have little impact on the decisions of long term investors, except to take the opportunity to rebalance your portfolio in line with your investment strategy.
The value of good advice and guidance when it comes to making the best investment decisions for your personal circumstances shouldn’t be underestimated. People who don’t have a reliable financial advisor are often tempted to make bad decisions – including reacting to the market by selling low and buying high, which is exactly the wrong thing to do.
Financial advisers can help you develop long-term strategies that minimise the impact of short-term volatility, can act as a sounding board or reality check if you’re nervous about falling markets, and have access to the information and approaches that will help you achieve your investment goals.
Taking advantage of the experts means that people with the knowledge and experience to properly assess opportunities and make decisions are working on your behalf – and you are getting access to professionals that can help reassure and identify the best ways to improve your financial situation.
If you are a younger investor with decades before retirement, having a portfolio of quality investments that are well diversified and supported by a long investment timeframe are sensible strategies designed to ride out market corrections.
For older investors and retirees it is not time to panic. It is time to check your exposure to the market and get better acquainted with the conservative part of your portfolio, making sure it’s as conservative as you think.
What can I do to help reduce my concerns about the current market volatility?
Economic pressures and market volatility make it increasingly difficult to manage your financial situation, which understandably causes worry and concern.
It’s important to take active steps to stay in control of your financial situation – and this should include getting professional assistance from a financial adviser. This will help you develop long-term strategies that minimise the impact of short term volatility.
It’s also very important to make investment decisions that you understand are comfortable with. Getting the right advice, assistance and expertise, coupled with a long-term approach, are the first steps in reducing worry.
JANUARY 2009