2020 has been quite a year and, as we enter the home stretch, it looks like global investment markets have finally run out of steam. Compared to the volatility that we saw at the beginning of the year the past quarter has been relatively subdued.
Share markets have been flat, the surge in tech stocks has slowed and, locally at least, we’ve seen the job market begin to recover.
For members in our Balanced option that’s meant slow but steady gains, with the fund returning 2% for the quarter. Our Overseas Shares option returned 4.9% during this same period.
But it's the long-term numbers that count, and as the table below shows, members in our Balanced option have seen average returns of more than 7.7% p.a. over the past decade.
Catholic Super comparison to September 30 2020*
5 Year P.A.
10 Year P.A.
(Balanced - MySuper)
*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.
Responding to black swans
Despite the better than expected investment returns, the future remains uncertain, as the global economy looks for a path out of lockdown and recession.
This won’t be easy, as we’re seeing a resurgence in coronavirus throughout Europe and the U.S.
At the same time, many of the stimulus packages that were introduced to keep economies afloat are now expiring. The true impact of the pandemic won’t be felt in Australia until banks end their mortgage deferrals and the job keeper subsidies are removed. It’s a similar scenario around the world, and any easing of support is likely to hamper a recovery.
With a vaccine unlikely until 2021, or possibly later, and the impact of the U.S. election anyone’s guess, we’re certainly not out of the woods yet.
So where to from here?
Looking ahead, we expect interest rates to remain very low. Cheap credit provides opportunities for growth. When combined with big spending government budgets we see a potential roadmap for the near future and economic recovery.
That being said, we still have two months left in 2020; ample time for more surprises, in a year that’s already delivered more than its fair share.
Which is why it's important to remember that super is a long-term investment. The good news is we've averaged returns of 7.7% per annum for our Balanced option over the past decade. That's a great result for our members, and a better retirement for you and your family.
Check your investment returns
Log in to your account for a more detailed overview of how your super has performed.
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.
© 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.