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Equip delivers Top 10 investment results for 2020

Superannuation  |  1/02/2021  |   8 min read

Last year was tough on many fronts.

But we’re pleased to announce Equip delivered Top 10 investment returns for members.

Our Balanced Growth option was up by 5.1% for the year. That’s not only a top performance, it’s also well above the SuperRatings SR50 market average of 3.3%.*    

Our Overseas Shares option returned members 15.4% for the year, significantly outperforming the competition. 

Download the full investment report here. Or watch the video below.

 

 

1 year investment performance
Equip comparison returns for 2020 calendar year*

Equip

Market average

Balanced Growth

SR50 Balanced (60-76) Index

5.10%

3.30%

Growth Plus

SR25 High Growth (91-100) Index

6.78%

4.05%

Overseas Shares
SR50 International Shares Index

15.40%

6.26%

Please note: Large tables will scroll to the right

*SuperRatings Fund Crediting Rate Survey
SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria.


Those numbers have been described as a “stunning turnaround” for the super industry. As the coronavirus pandemic began to shut down the global economy back in February and March, the average super balance saw a 10-12% loss.

While most funds have rallied, and recovered those losses, Equip has been recognised by Chant West for our Top 10 end of year ranking.
 

The reason for the gains

Investment markets have been in recovery mode since mid-2020, and the December quarter solidified that trend with roaring gains.
 

Quarterly investment performance
Equip quarterly returns to 31 December 2020*

Investment option

Equip returns

Balanced Growth

5.99%

Growth Plus

9.36%

Overseas Shares

10.58%

*SuperRatings Fund Crediting Rate Survey
SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria.


Those gains were driven by a number of factors, including:

  • Better than expected developments on the COVID-19 vaccine,
  • Increased political certainty in the U.S. following the November elections, 
  • Economic stimulus in the U.S.

While the above provided markets with renewed optimism and certainty, the results were underpinned by surging tech stocks. Indeed, one of the biggest investment stories of 2020 has been the unprecedented rise in tech stocks.

Tesla began the year at $84.90 USD and ended 2020 above $700, a gain of over 740%. Apple, Amazon and Google haven’t been able to match those numbers, but they’ve all done very well for investors, returning 80%, 76%, and 30% for the previous calendar year. 

The good news for members is that surging tech stocks also boost super balances, especially those invested in growth-driven options. This is another reason that our Growth Plus option is up 9.36% for the previous quarter, and Overseas Shares have returned 10.58% during that same time. 


Where to from here?

The new U.S. administration is looking at a $1.9 trillion USD stimulus package to help jumpstart the American economy. It’s hoped that this government spending, alongside the rollout of a COVID-19 vaccine, will help deliver an economic recovery in 2021.

But if 2020 has taught us anything, it is to expect the unexpected. Which takes us full circle, and back to the early days of 2020 when no-one anticipated a global pandemic, or a record surge in global tech stock.

The simple fact is no-one can predict the future, and past performance is no guarantee of future results. But most of us are probably looking forward to a calmer, more stable 2021.

Meanwhile, a financial planner can help you better understand your options and recommend the best way to structure your finances. Equip members can speak to one of our financial planners at no additional charge for the initial appointment. 


Find out more about our financial planning services. 

 

This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr") is the trustee of the Equipsuper Superannuation Fund ABN 33 813 823 017 ("Equip" or "The Fund"). Past performance is not a reliable indicator of future performance.

Togethr Financial Planning Pty Ltd (“TFP”) (ABN 84 124 491 078, AFSL 455010), trading as Equip Financial Planning, is licensed to provide financial planning services to retail and wholesale clients. TFP is owned by Togethr Holdings Pty Ltd (ABN 11 604 515 791). You can obtain the TFP Financial Services Guide and/or Privacy Statement by contacting our Helpline on 1800 682 626. This is general information only and does not take into account your personal objectives, financial situation or needs and therefore should not be taken as personal advice.

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