Russia and Ukraine crisis

posted on 03.03.2022

Staying calm during a major market event

The current situation in the Ukraine is concerning and is increasingly fluid. Financial markets have been reacting to this situation and whilst markets are volatile, our investment managers, Morningstar, are experienced at managing investments during major market events and market cycles. 

REI Super, along with Morningstar are monitoring the situation closely. It is important in situations like this, to keep focussed on your long-term investment return objectives. As the COVID pandemic has shown us, markets can fluctuate and reacting to short-term market movements could have a negative impact to your long-term retirement savings. 

Changing investment strategies during market volatility can prove risky. If you are considering changing your investment strategy, make sure you speak to a licensed or appropriately authorised financial advisor before you act. 

REI Super members have access to professional and cost-effective advice as part of their membership, so call the Member Helpline on 1300 13 44 33 if you need to discuss the investment strategies that are appropriate for you. 

Our investment managers, Morningstar, have provided in-depth investment insights on the current situation. Click here to read the full report.  

Key Takeaways

  1. The rapid escalation between Russia and Ukraine has dramatically shifted investor sentiment. We are witnessing a meaningful setback in key financial markets, prompting volatility and negative speculation. This is normal amid uncertainty, but it is worth stepping back to understand the fundamentals of the situation.
  2. A wide range of potential scenarios and outcomes are possible from here. As multi-asset investors, we should try to avoid predicting these pathways and instead look at the potential implications across assets.
  3. Energy prices are an area we believe will be vividly impacted.
  4. Russian stocks only account for around 2.9% of the emerging-markets basket1. So, while the local market reaction has been severe, the numbers don't argue for a significant long-term impairment in emerging-markets holdings.
  5. Volatility in markets can create valuation opportunities that we are prepared to take advantage of.
  6. During wars and conflicts, the historical track record of the equity market is mixed, with some conflicts such as the Crimea invasion in 2014 leaving equity markets barely changed. 

Are you invested in the right investment option?

Before reviewing and changing your investments, you should figure out what your risk profile is. Why? If you don’t know what level of risk you’re comfortable with, how much you are willing to put your finances at risk or what your financial goals are, then you’re heading down a risky path with your money. Establishing your risk profile before investing, will help you determine your investment strategy and help you achieve your financial goals.

Need advice on investments

Now that you have an idea of your risk profile and how much you need to save for retirement, call our member services helpline to help choose the right investments for you. Our advice on contributions, investments and insurance within your REI Super account is free. There are low fixed fees to set up or review transition to retirement strategies or to obtain comprehensive advice. Call us today 1300 13 44 33.

1. Morningstar Investment Insights 



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