Equip delivers top ten performance in 2019

Investments | | 2 min read

Equip delivers top ten performance in 2019

 

Global share markets delivered stellar returns in 2019, with double-digit returns for growth driven investment options. Watch the video below for a 60-second summary from Equip's Chief Investment Officer, Anna Shelley.

 

Investment Report

After much negative sentiment just 12 months ago, when markets went through a slump, shares staged a remarkable comeback, fuelling the returns in member portfolios.

Investment Report

For the year, Equip MySuper, our broadly diversified default option, returned 13.1%. Notably, compared with peers, Equip nabbed a top spot for excellence over the last decade. According to a SuperRatings report, the Balanced Growth option, which preceded MySuper as the default option, closed out in the top 10 of all balanced funds in Australia, providing members a 8.3% return per annum.

The quarter saw progress, as one of the main political risks that weighed heavily on sentiment was avoided. Tariffs by the US on China were schedule to increase mid December. However, the announcement of a deal between Washington and Beijing put an end to the escalating rhetoric, providing significant relief to share markets.

Economic indicators generally supported markets during the second quarter of the financial year. The United States in particular showed strength, adding hundreds of thousands of jobs late in the year, and restored faith among investors that a slump was not imminent. Interest rates remained low, further bolstering investor confidence; the Reserve Bank of Australia lowered the cash rate to 0.75% in October.

While Australian and overseas shares were the main drivers of returns, property, bonds, cash, infrastructure and our allocation to alternatives all contributed to overall performance. 

Outlook

Low inflation, moderate economic growth, cheap borrowing costs for businesses and consumers, and low unemployment levels generally provide a positive backdrop for investors. Of course, as always, there’s a list of risks, including ongoing trade tensions between the United States and China and Europe, respectively; the spread of the corona virus, which is impacting productivity and consumer spending not only in China, but elsewhere as well; and the 2020 presidential election in the US, to name but a few.

At this time, we remain more conservatively positioned than many super funds. We maintain an underweight to shares and fixed income assets, while holding slightly more alternatives and cash than usual. While this position might yield lower returns over shorter periods of time, it has traditionally served us well when market strength eventually starts to wane.

An Equip financial planner can help you plan for tomorrow. Find out more by clicking here.


Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("the Fund"). The information contained herein is general information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should also seek professional financial advice tailored to your personal circumstances. Where tax information is included, you should consider obtaining personal taxation advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the appropriate Product Disclosure Statement (PDS) and Target Market Determination for the product which are available at equipsuper.com.au.  Financial advice services may be provided to members by the trustee’s related entity Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). *Past performance is not an indication of future performance.

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