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The current investment climate has had an impact on the investment returns for the Cash option resulting in short-term returns for this option being marginally negative. For the Financial Year to Date to 31 December 2020 (6 months), the returns for this option were -0.04% (-$4 for every $10,000 invested over that period).

Why are Cash option returns negative?

Official interest rates across the globe have plummeted over the last few years. This trend was accelerated more recently as countries responded to the economic impact of the COVID-19 pandemic. This has had an impact on the returns for Cash based products, which in Australia, are essentially zero at the moment.

After the costs of operating the Cash option are applied, this produces a return on this option which is marginally negative.

With little prospect of inflation escalating and strong incentives for countries to keep official interest rates low to help manage the cost of increased debt in times of crisis, most economists are predicting that cash rates will remain low, close to zero, and below inflation for some time to come.

What are options for members invested in the Cash option?

Mercy Super has a range of investment options with different risk/return profiles. These enable members to create an investment mix and strategy that suits their personal needs. You can see the recent returns for all these options here.

If you’re currently invested in the Cash option and want to keep this in place for your super that’s fine – we just wanted to bring the current negative investment returns to your attention.

Alternatively, if you want to consider other options, we’re here to help. We can guide you through the options available and our in-house advisers can help you identify your own personal investment strategy matched to your circumstances and long-term goals.

To get help in choosing an alternative strategy – just get in touch. Note there are no buy-sell or transaction costs associated with switching investments and advice relating to your Mercy Super investment options is provided as part of the administration fee so there is no additional cost to you.

Want to know more?

Remember, if you ever have any questions about your super we’re always here to help. Just drop in and talk to us face to face, call or send us an email. You can also keep track of your super at any time by logging into your account at mercysuper.com.au.

We’re committed to helping you realise your goals no matter what stage of life you’re at. It’s all part of our commitment to be – Always for you.