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Pension investment update

Retirement  |  3/05/2021  |   7 min read

The global economy is starting to recover from the COVID-19 recession, and we’re seeing the results in both investment returns and super balances.  

Our Balanced Growth (Pension) option delivered quarterly returns of 3.5% to the end of March. That takes one year investment returns to 21.8%. Which is a remarkable turn-around from where we were this time last year. 

It means an Account Based Pension balance of $100,000 invested in Balanced Growth could have seen over $20,000 in investment returns over the previous 12 months, depending on the timing and amount of pension payments.* 

12 month return example 
$100,000 in Equip's Balanced Growth (Pension) option 

20k-returns-02.png

Strong investment returns help top-up your Account Based Pension balance, and the previous 12 months have seen competitive results across most of our investment options.

Our Conservative (Pension) option delivered a very healthy 10.7% for the 12 months to the end of March. But the standout performance came from our Overseas Shares (Pension) option, which saw over 42% in returns. That’s a phenomenal result, and one that’s unlikely to be matched anytime soon.

Investment returns to March 31 2021
SuperRatings Pension Fund Crediting Rate Survey^

 

All funds
industry median
(rolling 1 year) 

Equip
(rolling 1 year)

Conservative (Pension)
(Capital Stable 20-40)

9.26%

10.74%

Balanced Growth (Pension)
(Balanced 60-76)

21.47%

21.84

Overseas Shares (Pension)
(International Shares)

30.28%

42.09%

 

View the full quarterly investment returns.

Download Equip’s Investment report. 

 

COVID-19 recovery and investment markets  

We’re not out of the woods when it comes to COVID-19. International travel is still largely suspended, retail is sluggish, and the lack of overseas students is playing havoc with sections of the economy, but the recovery is gaining momentum, and doing so faster than most economists expected.

This comes down to a couple of key factors:

  • The roll out of the COVID-19 vaccine
  • Ongoing international government stimulus

These measures have helped revive business and seen growth projections upgraded. In other words, there’s a light at the end of the tunnel, and optimism is returning to markets.
 

Looking forward 

Tech stock had a bumper year in 2020. With people confined to their homes and unable to travel, services such as Netflix and Amazon soared. So did many things associated with home entertainment, home décor, and the reduced mobility associated with a global pandemic.

As the world awakes from its collective 12-month slumber it’s unlikely we’ll see those growth levels maintained in the tech sector. That being said, we expect the economic outlook to continue improving, with strong corporate earnings helping to drive shares upwards.

So, that’s the good news. But as always, there are opportunities and challenges on the horizon. 

Our relationship with China will continue to have significant implications on the size and scope of any recovery and future growth. Meanwhile, there’s a host of economic issues to contend with, including inflation, interest rates, the housing market and how to balance these competing demands in a recovering market. 

Still, it’s hard to argue with 21% investment returns. Or 10% for Conservative (Pension) options. And while there’s still a long road to recovery, we’re in a remarkably good place compared to this time last year.  
 

Tailor your investments

You can find out more about Equip’s investment options and how they’ve performed via our Investment returns chart.

With 11 different investment options available, our members can decide how they would like to see their money invested, and tailor their own portfolio accordingly.

Our financial planners can help you set up an income strategy for retirement, and the first appointment is available at no additional charge.
 

Review your quarterly investment returns
 

*less fees and charges

^SuperRatings 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.

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.

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