Investment update - February 2021

Last year was tough on many fronts.

So we’re pleased to announce that Catholic Super members enjoyed positive investment returns.

Our default Aggressive Super option delivered 4.05% for the year.

While the standout performance was our Overseas Shares option, which returned members 10.74%. 

Download the full investment report. 
 

1 year investment performance
Catholic Super comparison for 2020 calendar year*

Investment option

Catholic Super 

Market average 

CS Difference 

Balanced Super Option
SR50 Balanced MySuper (60-76%) Index   

3.53%

3.30%

+0.23%

Aggressive Super option
SR25 High Growth (91-100) Index

4.05%

4.05%

0.00%

Overseas Shares option
SR50 International Shares Index

10.74%

6.26%

+4.48%

*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.

That’s a remarkable turnaround since the start of 2020, when the coronavirus pandemic began to shut down the global economy and super balances went backwards. Those early losses have been recovered, and most members would have seen their 9th consecutive year of positive returns. 

The reason for the gains

Investment markets have been in recovery mode since mid-2020, and the December quarter solidified that trend with strong gains.

Quarterly investment performance
Catholic Super quarterly returns to 31 December 2020*

Investment option

Catholic Super return

Balanced Super Option

5.70%

Aggressive Super option

7.01%

Overseas Shares option

7.97%

*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.

Those returns were driven by a number of factors, including:

  • Better than expected developments on the COVID-19 vaccine,
  • Increased political certainty in the U.S. following the November elections, 
  • Economic stimulus in the U.S.

While the above provided markets with renewed optimism and certainty, the results were underpinned by surging tech stocks. Indeed, one of the biggest investment stories of 2020 has been the unprecedented rise in tech stocks.

Tesla began the year at $84.90 USD and ended 2020 above $700, a gain of over 740%. Apple, Amazon and Google haven’t been able to match those numbers, but they’ve all done very well for investors, returning 80%, 76%, and 30% for the previous calendar year. 

The good news for members is that surging tech stocks also boost super balances.

Where to from here

The new U.S. administration is looking at a $1.9 trillion USD stimulus package to help jumpstart the American economy. It’s hoped that this government spending, alongside the rollout of a COVID-19 vaccine will help deliver an economic recovery in 2021.

But if 2020 has taught us anything, it’s to expect the unexpected. Which takes us full circle, and back to the early days of 2020 when no-one anticipated a global pandemic, or a record surge in global tech stock.

The simple fact is no-one can predict the future, and past performance is no guarantee of future results. But most of us are probably looking forward to a calmer, more stable 2021.

Meanwhile, a financial planner can help you better understand your options and recommend the best way to structure your finances. Catholic Super members can speak to one of our financial planners at no additional charge for the initial meeting.

Speak to a financial planner

Plan an investment strategy for uncertain times.

Authorised by Togethr Trustees Pty Ltd (ABN 64 006 964 049; AFSL 246383), the trustee of MyLifeMyMoney Superannuation Fund (ABN 50 237 896 957; SPIN CSF0100AU). Catholic Super and MyLife MySuper are divisions of MyLifeMyMoney Superannuation Fund. 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.