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How is your super invested?

I'm building my wealth | | 2 min read

Women with Coffee

Superannuation funds saw record returns last financial year.

Catholic Super members in our default Growth Plus option enjoyed returns of 19.90%.

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

Catholic Super offers a variety of investment options.

We have nine diversified investment options such as Balanced, Growth Plus, etc. These are complemented by five 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. Alternatively, you can opt for our default investment strategy, which is designed to manage your super throughout different life stages. 

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, that might mean 20% for members in our Growth Plus option, but the long-term average across ten years is closer to 10%.  

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 to infrastructure projects 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 decrease.

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 our 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 you may want to have a look.

While we provide a default lifecycle investment option for members, you can also opt for a sector specific investment, our PostiveIMPACT option, or a combination of options.  

Making a change is as easy as logging into your account and updating your preferences. 

Authorised by Togethr Trustees Pty Ltd (ABN 64 006 964 049; AFSL 246383) ('Trustee') the trustee of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Catholic Super is a division of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Financial advice services may be provided to members by the trustee's related entity. 

Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). The information contained herein is general information only. It has been prepared without taking into account your personal investment objectives, financial situation, or needs. It is not intended to be, and should not be, construed in any way as investment, legal or financial advice. Please consider your personal position, objectives, and requirements before taking any action. Past performance is not a reliable indicator of future performance.

© 2020 Togethr Trustees Pty Ltd. For further information please our contact our Service Centre on 1300 655 002 or visit our website: csf.com.au.

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