Equip Rio Tinto Fund Investment Report (Sept 2017)
Investments | 2/11/2017 |
5 min read
During the September quarter, shares and property continued their upward trajectory of the previous financial year. But bond returns remained muted, with the asset class providing slightly better returns overseas than in Australia. The Growth option, our broadly diversified MySuper investment option, returned 2.0% for the quarter for accumulation members, and 2.8% for pension members.
The quarter saw a fair share of distractions. North Korea fired test missiles over Japan, which led to a war of words between the US and North Korea. In Germany, the rise of the far right in the parliamentary election in Germany generated concerns globally. But while the world worried, markets cheered better company profits, the improved global growth outlook, and the re-election of Angela Merkel to a record fourth term.
Our International Equities option returned a very strong 3.2% during the period. In Australia, with economic indicators less emphatic, share market returns were mixed, and the Australian Equities option returned 1.4%.
Government bonds rallied early in the quarter, but gave much of the gains back as investors started to take talk about interest rate rises in some key markets more seriously.
Taking our mid-term outlook views into consideration, we remain underweight in most growth assets, such as shares and real estate. Further, we prefer cash over bonds, and hold higher levels of foreign currency than average, as we believe the Australian dollar to be overvalued relative to many other currencies.
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. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the relevant Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance. Issued by Equipsuper Pty Ltd ABN 64 006 964 049 AFSL 246383. MySuper Authorisation Numbers 33813823017672 and 33813823017518 (‘Equip’, ‘the Fund’ and ‘the Equip Rio Tinto Fund’).
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