You will no doubt know that investment markets have been extremely volatile over the past few weeks, caused by the spread of COVID-19 and compounded by the recent oil price falls. Equity markets do not like uncertainty and have fallen substantially from their recent highs.
COVID-19 was first experienced in the Chinese provinces of Wuhan and Hubei in late December 2019. Since that time the virus has spread to multiple countries. On 12 March 2020 the World Health Organisation (WHO) officially declared the virus as a global pandemic.
While COVID-19 is a humanitarian challenge, its direct and consequential effect on wider economic, business, employment and social dimensions collectively contributes to the pandemic affecting global investment markets.
At times like these it is important to focus on the long term. Diversification and long-term strategic asset allocation underpin the investment process at the Fund and although the current volatility will impact short term performance, history shows that markets recover over time.
We continue to monitor the situation and will provide further updates as necessary.
Further information is available on our website at www.fessuper.com.au