How is your super invested?
Investments | 5/10/2021 |
7 min read
Superannuation funds saw record returns last financial year.
Equip members in our default MySuper option enjoyed returns of 16.8%. Our Growth Plus option returned 25.2%
Those returns are based on members’ super being invested in a variety of local and overseas shares, property, and infrastructure.
Let’s take a closer look at what that means, and how a shift in Amazon, Wesfarmers or Commonwealth Bank shares can impact your super.
How super work: the basics.
Equip offers a variety of investment options.
We have six diversified investment options such as Balanced Growth, Growth Plus, etc. These are complemented by six sector specific options like Property and Overseas Shares.
When you join the fund, you can mix and match these options to suit your financial goals and risk tolerance. If you don’t make an active choice, you’ll be placed in our default MySuper option.
Either way, your super is invested on your behalf by the fund, and the performance of these options will determine the returns you see. In a good year, like the one we just had, that might mean 16.8% for MySuper members, but the long-term average across all super funds in Australia is closer to about 8% p.a. over 10 years.
How Amazon or Wesfarmers may impact your super
Our investment options help simplify things for members. They allow you to choose a level of risk and return that you’re comfortable with, and not have to worry too much about the specifics.
Where it gets interesting, and where our investment managers earn their keep, is all the unseen work that takes place.
Behind each of our options is a variety of companies, investments and fund managers working to provide you with a better retirement.
If you want to learn more, our Top Holdings table is a good place to start. It lists the companies that we invest in on behalf of our members. A quick glance shows that we’re invested in everything from overseas tech companies like Amazon, Tesla and Apple to the four big banks, overseas infrastructure and alternatives.
That means you may own a small piece of these companies via you super. Which means that when they go up your super returns also lift. Conversely, if they go down your super returns may be decreased.
||Utilities Trust of Australia
||Australia Pacific Airports Corp
||Brisbane Airport Trust
||Macquarie Global Infrastructure Fund II
A word from our investments team
In light of last year’s double-digit returns, we decided to go straight to the source, and speak with Equip’s Head of Asset Allocation about the market, and the future outlook.
What has driven the spectacular growth over the past 12 months?
“Interest rates are low, and there’s been a lot of stimulus support, that means money is cheap, which has helped drive spending, which in turn has seen share prices go up. The roll-out of the COVID vaccine has also provided hope and increased global confidence that we’ll emerge from the pandemic sooner rather than later.”
Which industries or companies do you feel have the most potential?
“If the global economic upswing continues, and we start to open international borders, we should see a bounce in spending and GDP growth. That should see mining, energy and the financial sector lift. Consumer driven retail spending should also lift, which will have an impact on that sector.”
What do you take into account when looking at investment opportunities?
“Each investment option has its own specific objective, aligned to risk and reward. So we look towards that as a starting point. We also look for diversification, so we don’t have all our eggs in one basket. You can review the objective (and returns) history of each of our options, to pick one that suits your needs."
Getting the mix right
When was the last time you checked your investment mix? If it's been a while it may be worth a look. You can see how our investment options have performed online, and making a chance is as easy as logging into your account and updating your preferences.
Whether that's a more growth driven strategy, our sustainable option, or a combination of options, it's your choice, and it's only a click away.
Check your investment returns
See how your super has performed over the previous 12 months
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.