To ensure that the Fund continues to deliver competitive returns to our members, we compare our performance against other funds in the industry. The data we use is provided by an independent superannuation consulting organisation, SuperRatings and is distributed at the end of each month for the previous month’s performance.

Overview

Equity markets continued to move higher as the world adjusts to the new reality as a result of COVID-19. Up till the end of October, the Australian and US share markets were up by 30% and 46% respectively from their March 2020 lows, in what has been a remarkable recovery from an otherwise negative event¹.

Dominating headlines over past months has been the US election, which was declared in favour of former Vice President Joe Biden in early November. In the short-term, equity markets have seen a Democratic President and Republican-controlled Senate as being positive for corporates, and markets have responded accordingly.

Meanwhile, news from pharmaceutical companies Pfizer and Moderna on successful COVID-19 vaccination trials have given equity markets another leg up on hopes that life may return to normal in 2021.

Although these news and events can provide an indication of how markets may react in the short run, the Fund continues to focus on longer-term trends as these will drive returns for our members, while also adjusting to take advantage of opportunities as they arise. Consequently despite favourable updates in recent times, the Fund maintains a slightly cautious stance as the world continues to deal with the social, health and economic outcomes caused by COVID-19. Moreover, it’ll take some time before the vaccine is deployed and for jobs as well as global economies to recover.

At the same time, interest rates have fallen to historic lows, which makes traditional safe-haven assets such as cash and bonds offer very low prospective returns.

In light of the above, the Fund has:

  • increased its exposure to US dollars, which provides a buffer if equity markets fall.
  • held less shares than usual. In particular, the Fund has reduced its exposure to highly priced US-listed technology shares.
  • reduced exposure to government bonds and cash in favour of more corporate debt, which generally provides better returns in a low-interest rate environment. 

Read more: Investment Update - August 2020

Investment performance as at 31 October 2020

As indicated below, a majority of the Fund’s diversified options have performed at or close to the industry average over differing time periods.

Superannuation investment returns (net of fees and taxes)

Super - Growth graph

The Growth option was introduced on 1 May 2018, so only data on short-term returns are available.

Super - Balanced graph

Super - Conservative Balanced graph

Super - Conservative graph

Super - Capital Stable graph

Read more: Our pension options - Riding the wave of extreme of volatility

Pension investment returns (net of fees)

Penson - Growth graph

The Growth option was introduced on 1 May 2018, so only data on short-term returns are available.

Penson - Growth graph

Pension - Conservative Balanced graph

Pension - Conservative graph

Pension - Capital Stable graph

¹Based on the performance of the S&P/ASX 200 and S&P 500 indices.

Any advice contained in this document is of a general nature only, and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek independent financial advice if you are unsure of what action to take. Past performance is not a reliable indicator of future performance.