When we invest your super, we focus on achieving the best outcome for you. Our approach focuses on the long-term because super is likely to be your longest investment.
Key points
- We invest to deliver strong long-term returns for our member’s retirement savings
- We understand that you need different things from your investments at different times
- Our team of investment experts decide how we invest and what we invest in
- Our investment approach focuses on the long-term, but also manages for short-term risks.
Our approach to investing
When we invest, we focus the long-term. That’s because super is a long-term investment.
Our aim is to invest in a diversified portfolio, or a mix of, good quality assets, like shares, property and bonds. We only want to be investing in assets where we are confident the risk of the investment will be rewarded in returns.
Aware Super is one of Australia’s largest super funds. Our size and scale helps create more opportunities to find the right investments.
A members-first investment approach
Our members need different things from their investments in super at different stages of life. That’s why we tailor the way we invest, to meet these needs.
Members’ financial wellbeing in retirement, is at the core of our investment approach. This guides the investment objectives and strategy for our different investment options.
Asset allocation
We invest in different assets like shares, cash and property. Asset allocation is a process where we decide how much of an option is invested in each asset class.
We make asset allocation decisions with the aim of smoothing the impacts of market ups and downs over time. The asset allocation, or the mix of assets you are invested in, is a key driver of your long-term returns.
Strategic asset allocation has a long-term focus.
- It decides the mix of assets we believe will deliver the desired returns for an investment option over the long-term.
- The key idea is to not be swayed too much by short-term market ups and downs.
For example:
If you are invested in our High Growth option which has a higher return objective, we allocate a larger proportion to shares. This is because shares are known as 'growth' assets and have the potential to increase in value over time.
If you are invested in our Defensive option, which has a lower return objective, we allocate a larger proportion to cash. This is because cash is a ‘defensive’ asset and is considered to be more stable.
We can also move away from the target strategic asset allocation. We may use active asset allocation to help improve your returns in the short-term.
Active asset allocation has a short-term focus
- We can change the mix of assets for short periods to respond to current market conditions.
- This helps minimise risk in the short-term and maximise returns.
Choosing your investments
There are many ways to invest to deliver value. We research a range of investment styles, investment managers and types of investments. We do this to find the right investments for our members.
Listed and unlisted assets
We can invest in listed investments, like shares and unlisted investments, like direct property. What your super is invested in will depend on your investment option or options.
Active and passive investing
An investment approach is the way investments are selected and managed to achieve an objective.
- Active investing involves making decisions that aim to outperform the broader market.
- Passive investing aims to match the performance of the market, and usually invests in a market index, like the ASX 200.
We prefer active investing as we believe it adds more value over time. However, where the returns are not compelling or it is too costly, we will passively invest. We also give our members access to a range of low-cost indexed options. These use a passive approach to investing.
Investment research
Aware Super has specialist investment teams for each type of asset class. For example we have a Property team and a Cash team. The teams are experts in selecting investments in their chosen asset class.
Investments are selected based on extensive research.
Research looks at things like:
- a company’s financial position, like how much profit they make and what their expenses are
- market trends that may impact the performance of a company or type of asset
- environmental, social and governance (ESG) factors.
Good governance
We have robust processes and governance frameworks in place. This is to manage the risks involved in making lots of investment decisions. All investments have to meet certain criteria to be included in our portfolios. A consistent process ensures we are considering the right things for every investment. It also empowers the experts with the most knowledge to be able to make the decision.
Where to next?
Understand investment basics
Super is a long-term investment for your future. Understanding how investments work can help you make better investment choices. This can make you feel confident that you’re on the right track to reach your retirement goals.
Change investment options
You can switch your investment options at any time. There is no charge for switching investment options.
Get help deciding the best investment option for you
At Aware Super, we can help you with questions about how to get the most out of your super. You can also pay for financial advice tailored to your specific needs.