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Equip delivers top ten performance in 2018

Superannuation  |  23/01/2019  |   5 min read

Equip was one of Australia’s Top Ten superannuation funds in 2018.

In a slow year for returns, Equip delivered members more than double the industry average. The default option returned 1.9% for the calendar year (compared to 0.8 across the broader superfund sector).

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What happened to investment returns?

2018 saw investment returns dive significantly in the final months, with local and international options hit especially hard. According to superannuation research and consultancy firm, Chant West, the “better performing funds in 2018 were those that had relatively higher allocations to unlisted assets - infrastructure, property and private equity - and to bonds at the expense of shares.” https://www.superreview.com.au/news/superannuation/industry-funds-lead-way-2018

“The power of diversification was clearly evident in 2018. When you consider that the Australian share market fell 3.1% and international shares 7.5%, the median [growth fund] was still able to eke out a positive return. That’s because, while these funds do invest substantially in shares they also invest in a wide range of other asset sectors including unlisted assets and traditional defensive assets such as bonds and cash, all of which produced positive returns for the year.”

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The long term outlook

While the 2018 numbers were modest, they have extended superannuation’s run of positive returns to seven years.  Equip has delivered an annual average return of 8.3% for members in the Balanced Growth option for the last decade. Growth Plus has delivered an annual average of 10% for the decade.

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The market expects more volatility in 2019, so it’s important that your investment options align with your risk tolerance. You can read more about Equip’s investment options, their long term returns, and their risk by clicking here. Changing your preferences is as easy as logging into your account and adjusting the percentages. While it’s totally free, and available right now, you should consider your long term investment strategy before making any updates. 
 

Try the retirement calculator to see how different options may impact your future balance. Click here.


Equipsuper Pty Ltd (“Equip”) (ABN 64 006 964 049, AFSL 246383) is the Trustee of the Equipsuper Superannuation Fund (“the Fund”) (ABN 33 813 823 017, MySuper Authorisation 33813823017672). This document provides general information only. It does not take into account your personal objectives, financial situation or needs, so should not be taken as personal advice. Before making a decision to invest in the Fund, you should read the appropriate Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance. Equip is licensed to provide intrafund personal and general superannuation advice under its AFSL. Member Advisors are employees of Equip. For more information about the remuneration of Equip and its employees, please refer to the Equipsuper Financial Services Guide (FSG).

Check your retirement income with the Equip calculator