Privacy Notice: We use cookies to improve your experience on our website. You can find out more and opt out by clicking here.

menu

Pension investment update

Superannuation  |  8/02/2021  |   10 min read

Last year was tough on many fronts.

So we’re pleased to announce that Equip members enjoyed positive investment returns.

Our Balanced Growth (Pension) option was up by 4.6% for the year. Which compares favourably to a 3.7% market average return*. Our Conservative (Pension) option also beat the market average. 

But the standout performance was our Overseas Shares (Pension) option, which returned members 16.4% for the year, significantly outperforming the competition.

Download the full investment report here. 

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

 

Equip

Market average

Balanced Growth

SRP50 Balanced (60-76) Index

4.6%

3.7%

Conservative

SRP50 Capital Stable option (20-40)
Index

4.3%

2.8%

Overseas Shares
SRP50 International Shares Index

16.4%

6.8%

Please note: Large tables will scroll to the right

*SuperRatings Pension 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.

That’s a remarkable turnaround since the start of 2020, when the coronavirus pandemic began to shut down the global economy and super balances went backwards. Those early losses have been recovered, and most members would have seen their 9th consecutive year of positive returns. 
 

The reason for the gains

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

Quarterly investment performance
Equip quarterly returns to 31 December 2020*

Investment option

Equip returns

Balanced Growth (Pension)

6.71%

Conservative (Pension)

3.17%

Overseas Shares (Pension)

11.42%

*SuperRatings Pension 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 USD, 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 quarter.  

The good news for members is that surging tech stocks also boost super balances, especially those invested in growth-driven options. Which is another reason our Overseas Shares (Pension) option is up 11.4% for the previous quarter.


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’s 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 stocks.

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 meeting. 


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.

Check your retirement income with the Equip calculator

Get in touch

Do you need additional assistance?

Fill in your details, and Equip’s Member Services team will call you back.

Thank you. An Equip representative will be in touch shortly.