Pre-mixed investment options are flexible, with the ratio of asset classes changing over time to take advantage of market conditions.

To help reduce the impact of large market fluctuations and corrections, our pre-mixed options are invested across a range of asset classes such as shares, cash and fixed income. These asset classes are the building blocks of your investment and the main driver of returns.

Asset allocation refers to how much of a particular asset class is held by each investment option.

As a guide, each year we set long-term asset allocation percentage targets for each investment option, known as strategic asset allocations (SAA). We also establish asset allocation ranges which are the minimum and maximum amounts we can invest in each asset class. During the year we may move towards or away from the strategic asset allocations percentages based on our outlook for the economy and investment markets. The asset allocations at a particular point in time are referred to as the actual asset allocations.

Strategic asset allocations and ranges

Strategic asset allocations for pre-mixed investment options (super and income stream).

Strategic asset allocations

Asset class High Growth Growth Diversified Socially Responsible Balanced Growth Conservative Growth
Australian equities 30% 23% 26% 16% 6%
International equities 37% 29% 24% 21% 7%
Alternatives 28% 28% 26% 28% 29%
Fixed income 0% 10% 18% 20% 20%
Cash 5% 10% 6% 15% 38%
Total 100% 100% 100% 100% 100%

Ranges

Asset class High Growth Growth Diversified Socially Responsible Balanced Growth Conservative Growth
Australian equities 20% - 40% 13% - 33% 16% - 36% 6% - 26% 1% - 13%
International equities 27% - 47% 19% - 39% 14% - 34% 11% - 31% 2% - 12%
Alternatives 18% - 38% 8% - 48% 6% - 46% 8% - 48% 14% - 44%
Fixed income 0% - 10% 1% - 20% 8% - 28% 5% - 35% 5% - 35 %
Cash 1% - 15% 1% - 45% 1% - 36% 1% - 60% 1% - 85%

Actual asset allocations

Effective asset allocations for pre-mixed investment options (super and income stream) as at 31 October 2017.

Asset class High Growth Growth Diversified Socially Responsible Balanced Growth Conservative Growth
Australian equities 29.9% 23.2% 26.3% 16.2% 5.9%
International equities 36.7% 29.2% 28.5% 20.5% 7.0%
Property^1 7.2% 6.2% 7.9% 5.8% 4.7%
Infrastructure & real assets^1 4.2% 3.0% 7.7% 3.9% 3.9%
Credit income^1 0.0% 3.1% 0.0% 7.5% 11.2%
Private equity^1 5.3% 5.1% 0.0% 3.6% 2.0%
Other alternatives^1 8.1% 8.7% 3.7% 6.9% 7.9%
Fixed income 0.0% 10.0% 17.3% 19.9% 20.1%
Cash 8.6% 11.5% 8.6% 15.7% 37.3%

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Our asset allocation approach

We use an active approach to asset allocation that allows us to take advantage of market conditions by temporarily increasing or decreasing our exposure to a particular asset class. This can help shield members from the risks of being overexposed to expensive markets and add additional incremental returns by increasing exposures to asset classes when they are attractive. This is one of the ways we look to add value to our investments and is outlined in the below video.

  1. Included in the Alternatives asset class.

    The actual asset allocation will vary and figures will be updated to reflect how each pre-mixed investment option is blended over time.

    Please note, 'Other alternatives' was previously called ‘Dynamic multi asset’. And on 15 August 2016, the names of three of our pre-mixed options were updated as follows: from Diversified to Growth, from Balanced to Balanced Growth and from Capital Guarded to Conservative Growth.