The September 2020 quarter saw each of our investment options deliver strong results, with investments across all asset classes performing well.
According to Qantas Super investment manager Chris Grogan, markets both at home and abroad are steadily recovering from the lows of the March 2020 quarter.
Along with continued stimulus from governments, this recovery was aided by growing consumer and business confidence.
Though Victorians were in lockdown for the local winter, the rest of Australia got used to the new ‘COVID-normal’, with retailers reopening and hospitality venues welcoming diners back in progressively larger numbers.
Europeans and North Americans also enjoyed a relatively open northern hemisphere summer, despite the growing numbers of COVID-19 cases in many countries, helping to buoy their respective economies.
The results for the financial year to date are as at 30 September 2020. Meanwhile, 1, 3, 5, 6, 7, and 10 year returns are p.a. to 30 June 2020.
All returns are after investment fees.
| Investment option | Financial year to date | 1 year | 3 years | 5 years | 6 years | 7 years | 10 years |
|---|---|---|---|---|---|---|---|
| Glidepath: Take-off | 2.3% | -2.8% | 5.8% | ||||
| Glidepath: Altitude | 2.0% | -1.6% | 5.3% | ||||
| Glidepath: Cruising | 1.7% | -1.0% | 5.1% | ||||
| Glidepath: Destination | 1.5% | -0.9% | 4.5% | ||||
| Aggressive | 2.3% | -2.8% | 5.8% | 5.8% | 6.4% | 7.6% | 7.9% |
| Growth | 2.0% | -1.6% | 5.3% | 5.3% | 5.7% | 6.6% | 7.0% |
| Balanced | 1.5% | -0.9% | 4.6% | 4.4% | 4.8% | 5.6% | 6.1% |
| Conservative | 1.1% | 0.1% | 3.9% | 3.8% | 4.0% | 4.4% | 4.9% |
| Cash | 0.2% | 1.2% | 1.6% | 1.6% | 1.7% | 1.8% | 2.4% |
Past performance is not a guarantee of future performance.
The return to positive territory for each of our investment options highlights the importance of taking a long-term approach to investing your super.
Though there may yet be occasional dips along the way, over a century’s worth of historical financial markets performance tells us that as economies recover following crisis events, so do financial markets.
As at 30 September 2020 – all returns and objectives are per annum and after investment fees.
| Investment opton | Return objective | Actual return | Return objective | Difference |
|---|---|---|---|---|
| Glidepath: Take-off | CPI +4.5% p.a. over 10 years | 6.4% (5 year return) | 6.4% | 0.0% |
| Glidepath: Altitude | CPI +3.5% p.a. over 7 years | 5.8% (5 year return) | 5.4% | +0.4% |
| Glidepath: Cruising | CPI +3.0% p.a. over 6 years | 5.3% (5 year return) | 4.9% | +0.4% |
| Glidepath: Destination | CPI +2.5% p.a. over 5 years | 4.7% (5 year return) | 4.4% | +0.3% |
| Aggressive | CPI +4.5% p.a. over 10 years | 7.7% (10 year return) | 6.6% | +1.1% |
| Growth | CPI +3.5% p.a. over 7 years | 6.3% (7 year return) | 5.6% | +0.7% |
| Balanced | CPI +2.5% p.a. over 5 years | 4.9% (5 year return) | 4.5% | +0.4% |
| Conservative | CPI +1.5% p.a. over 3 years | 4.0% (3 year return) | 3.4% | +0.6% |
| Cash | Bloomberg AusBond Bank Bill over 1 year | 1.0% (1 year return) | 0.6% | +0.4% |
As Glidepath was established on 1 October 2015, only five year returns are shown for these options. Past performance is not a guarantee of future performance.
Each of our investment options are meeting their stated return objectives.
These objectives are linked to the Consumer Price Index, which measures inflation. We aim to achieve these objectives so your super account delivers a return higher than the rate of inflation over the long term, as your superannuation will support your income and lifestyle in retirement.
For most of us, going through the global financial crisis just a couple of months after taking on the role of inaugural Chief Investment Officer (CIO) of a super fund would likely be considered a case of particularly bad timing. Not so for Andrew Spence, who believes his joining Qantas Super as the fund’s first CIO in July 2008 came at the perfect time.
At Qantas Super, we focus on being well diversified by building portfolios with investments that complement each other. That means your super is invested across over 5,000 investments such as shares, property, infrastructure, timberland, agriculture, a variety of bonds, and cash. Take a look at a couple of the things we’ve invested in.
According to independent research house SuperRatings, each of our tailored investment options – Aggressive, Growth, Balanced, Conservative, and Cash – was ranked in the top quartile for their respective categories for the September 2021 quarter, with Aggressive ranked 1st.
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone. It’s included as a part of your membership so there’s no extra cost.
