Quarterly investment update February 2024

Investments | | 2 min read

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Equip Super accumulation and Transition to Retirement Income
Quarter ended 31 December 2023
 

Global equity markets rebounded strongly over the December quarter, buoyed by robust economic activity and hopes for interest rate cuts in 2024. It was a welcome turnaround after the broadly negative market returns of the previous quarter.

Fund performance

The Equip Super Balanced Growth investment option returned 4.14% for the three months to 31 December 2023, and the MySuper investment option returned 4.15%. All Equip Super investment options posted positive returns for the quarter.

Equip Super is delivering strong returns for members over the long term. The Balanced Growth investment option returned an average of 7.17% a year for members for the last 10 years, and the MySuper investment option returned an average of 6.92% for the last 10 years.
 

View the quarterly investment update

Market review

Global equities experienced a strong resurgence over the quarter. The MSCI World Index ex-Australia (hedged into Australian dollars), achieved a solid return of 5.3% for the quarter, and an overall return of 22.3% for the year to 31 December 2023.

In Australia, the S&P/ASX 300 Index rose by 8.4% for the quarter. The November monthly inflation report saw inflation decrease to 4.3% for the previous 12 months, while unemployment rose to 3.7%. The Reserve Bank of Australia raised the cash rate to 4.35% in November.

Expectations of lower interest rates in 2024 led to a material fall in bond yields. The US 10-year Government bond yield fell from 4.57% to 3.88%, and the Australian 10-year Government bond yield fell from 4.49% to 3.96%.

Looking ahead

When the US Federal Reserve changed its stance on interest rates in December, markets were ignited by the prospect that the next move for interest rates will likely be down. The broader US economy, although showing signs of slowing, has remained resilient, and it appears that the Federal Reserve has managed to pull off the near impossible – a “soft landing” for the economy.

But the outlook is mixed. The war in Ukraine shows no sign of resolution, and conflict in the middle east continues. The recent easing in US/China tensions, however, is being welcomed. In 2024, more than half the world’s population, across 40 countries, will have national elections – the largest election year in history.

Share markets have run very hard recently and are close to breaching all-time highs, and much of the associated optimism may already be accounted for. While we hope 2024 plays out as expected, there’s still room for disappointment should it deliver any unwelcome surprises.

We’re here to help

If you’d like further information about how your investments have performed, or if you’ve got any queries about your Equip Super account, you can contact us online at any time, or give our team a call on 1800 682 626, Monday to Friday 8:00am to 8:00pm AET.

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the trustee of the Equipsuper ABN 33 813 823 017 ("Equip Super"). The information contained 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. Before making a decision to invest in the Equip Super, you should read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product which are available at equipsuper.com.au.  Financial advice may be provided to members by Togethr Financial Planning Pty Ltd (ABN 84 124 491 078 AFSL 455010) – a related entity of Togethr.
Past performance is not an indication of future performance.