Equip & Catholic Super beat coronavirus downturn
Equip and Catholic Super have defied the worst market downturn since the Global Financial Crisis, delivering positive returns to members invested in the joint trustee’s flagship balanced options.
In a financial year end that saw COVID-19 market jitters push most super funds into negative territory, Equip’s Balanced Growth option captured a 1.7% return and Catholic Super’s Balanced option +0.52%. Both funds’ returns are above 8% p.a. over 10 years – proving once again that long term gets the returns.
Anna Shelley, Chief Investment Officer, said that the funds deployed a number of strategies to protect members’ retirement savings as COVID-19 disrupted financial markets.
“Global markets fell significantly and very quickly as the coronavirus pandemic hit back in March. Despite the initial panic, markets have significantly rebounded since then,” she said.
“As markets bottomed through March, the funds bought $1 billion of equities and, after markets had recovered substantially, $1 billion of equities was steadily ‘sold off’. Many small, conservative actions were implemented to protect and add to our members’ retirement savings.
“Put another way, while markets are still a bit lower than their record February highs, they’re back to late 2019 numbers.
“Equip and Catholic Super’s investment team is closely watching the markets and resetting strategies as conditions change during the pandemic, positioning members’ retirement savings for long-term growth as markets and economies reset and recover for life after the crisis.
“Both funds are known for their track record of delivering for members, particularly in tough times, so we are very pleased to achieve these results, supporting our members’ retirement outcomes. Our long term results show that investments require time in the market. The key is consistently strong results over many years.”
Scott Cameron, Equip and Catholic Super Chief Executive Officer, said managing both risk and opportunities to grow members’ wealth is essential, particularly at a time when consumers are seeking to chase returns.
“Both funds have a long-term growth plan to deliver competitive fees and performance. The results for the 12 months to June and a longer 10 year period show that the funds are growing members’ retirement savings during both difficult and more optimistic times,” he said.
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Any figures quoted are correct at the time of writing but may be subject to change.
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.
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