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Investment update

Superannuation  |  22/10/2020  |   7 min read

2020 has been quite a year and, as we enter the home stretch, it looks like global investment markets have finally run out of steam. Compared to the volatility that we saw at the beginning of the year the past quarter has been relatively subdued.
 


Share markets have been flat, the surge in tech stocks has slowed and, locally at least, we’ve seen the job market begin to recover.

For members in our Balanced Growth option that’s meant slow but steady gains, with the fund returning 1.9% for the quarter.

Our Overseas Shares option returned 5.9% during the same period. 

But it's the long-term numbers that count, and as the table below shows, members in our Balanced Growth option have seen average returns of more than 8% p.a. over the past decade, which is a Top 10 result.

Read the full investment report here. 
 

Investment Performance
Equip comparison to September 30 2020^

 

Option
name
Rolling
1 Year
Rolling
5 Year P.A.
Rolling
10 Year P.A.
Equip MyFuture
(Balanced Growth)
1.31% 7.46% 8.05%
SR50 Balanced
(60-76%) Index
-(0.86)% 6.37% 7.14%


^SuperRatings SR50 Balanced Option Index
SuperRatings does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria.

 

Responding to black swans

Despite the better than expected investment returns, the future remains uncertain, as the global economy looks for a path out of lockdown and recession. 

This won’t be easy, as we’re seeing a resurgence in coronavirus throughout Europe and the US.

At the same time, many of the stimulus packages that were introduced to keep economies afloat are now expiring. The true impact of the pandemic won’t be felt in Australia until banks end their mortgage deferrals and the job keeper subsidies are removed. It’s a similar scenario around the world, and any easing of support is likely to hamper a recovery.

With a vaccine unlikely until 2021, or possibly later, and the impact of the US election anyone’s guess, we’re certainly not out of the woods yet.
 

Looking forward

So where to from here?

Looking ahead, we expect interest rates to remain very low. Cheap credit provides opportunities for growth. When combined with big spending government budgets we see a potential roadmap for the near future and economic recovery.

That being said, we still have two months left in 2020; ample time for more surprises, in a year that’s already delivered more than its fair share.

Which is why it's important to remember that super is a long-term investment. And if you look back at the last decade you'll find that Equip has averaged returns of over 8% p.a. for members in our Balanced Growth option. That means a a better retirement for you and your family. 

 

Login to your account for a more detailed overview of how your super has performed. Click here.

Read the full investment report here.  
 

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 an indication 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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