menu

Your Investment Report

Superannuation  |  24/04/2018  |   5 min read

After an unusually calm 2017, the March quarter saw some headline grabbing swings and roundabouts for growth assets, such as shares and listed property. But despite the recent volatility, returns remain solid for the financial year to date, with Equip MySuper, the default option for our accumulation members, returning 5.78%. The Conservative pension option, which has a lower exposure to global share markets, has chalked up a 3.80% return financial year to date.

During the quarter, investors worried about a potential trade war between the US and China, which they feared would also impact directly on Australia, as about a third of our exports go to China.  Investor sentiment was also affected by signs that global growth was peaking, as well as fears that US inflation might trigger interest rates to rise sooner than expected.

The Australian market felt the effects of these perceived headwinds. Equip’s Australian Shares option posted a -2.8% return for the quarter. Health care, consumer staples and information technology bucked the trend and performed relatively strongly, while other sectors showed negative returns for the quarter.

Overseas markets performed better; the Equip Overseas Shares option returned a solid 2.3% for the quarter. Despite all the noise, the US market, the world’s largest share market, ended the quarter up -- the proposed tariffs China threatened with would have an insignificant effect on US growth overall. Japan was also up, while some of the larger European markets, such as Germany and the UK, lagged.

At this stage of the economic cycle, we are at the tail end of an extended global growth phase. We expect that volatility in share markets will remain a recurring feature over the next few months. But the good news is that the economic backdrop continues to look solid -- global growth is healthy, and interest rates remain cheap for the most part.

 

Read the full investment report and check specific investment returns by clicking 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. 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’).

Equipsuper Financial Planning Pty Ltd (“EFP”) (ABN 84 124 491 078, AFSL 455010) is licensed to provide financial planning services to retail and wholesale clients. EFP is owned by Equipsuper Financial Holdings Pty Ltd (ABN 11 604 515 791). You can obtain the EFP Financial Services Guide and/or Privacy Statement by contacting our Helpline 1800 682 626.

Check your retirement income with the Equip calculator