Each investment option has an investment objective, which is the desired investment return for the option reflecting the current investment environment and investment mix. Investment objectives vary with the level of risk associated with the assets that make up the option.
A benchmark is a reference point within an objective, against which performance can be measured. For example, for our diversified options, the benchmark is the Consumer Price Index (CPI).
When making an investment choice, keep in mind that objectives and benchmarks are tools to monitor performance. They are not a forecast of future returns or a prediction of the earnings on your investment.
While investment objectives are not to be taken as a forecast of future performance, they can give you an idea of the expected return outcome of each investment option.
We periodically review the investment objectives for each option to ensure they reflect the current investment environment. As a result, we may change the objective or benchmark of an investment option from time to time.
Diversified investment options
For each diversified option, the investment objective is to achieve investment returns above inflation (as measured by the Consumer Price Index) over rolling time periods.
The current benchmarks for the diversified options are shown below and are over rolling 10-year periods after taking into account fees, costs and tax.
|Option||Super and Transition to retirement Benchmark||Retirement Income stream Benchmark|
|High Growth||CPI + 4.00% p.a.||CPI + 4.50% p.a.|
|Growth||CPI + 3.75% p.a.||CPI + 4.25% p.a.|
|Diversified Socially Responsible Investment (SRI)||CPI + 3.25% p.a.||CPI + 3.00% p.a.|
|Balanced Growth||CPI + 3.00% p.a.||CPI + 3.50% p.a.|
||CPI + 1.25% p.a.||CPI + 1.75% p.a.|
Single asset class investment options
To benchmark the performance of our asset class options, we use a relevant benchmark or index. The current benchmarks for our single asset class options are shown below.
|Australian Equities||Aware Super Custom Index on MSCI Australia Shares 300^1 (before fees, costs and tax)|
|Australian Equities Socially Responsible (SRI)||Aware Super Custom Index on MSCI Australia Shares 200^1 (before tax and after fees and costs)|
|International Equities||Aware Super Custom Index on MSCI World ex-Australia^1 (unhedged) in Australian dollars (before fees, costs and tax)|
|Property||A weighted index, namely:
65% FTSE EPRA/NAREIT Developed Rental Index Net Dividends Reinvested (100% hedged) in Australian dollars
35% CPI + 5% p.a. (before tax and after fees and costs)
|Australian Fixed Interest||Bloomberg AusBond Composite 0+Yr Index (before fees, costs and tax)|
|International Fixed Interest||Bloomberg Barclays Global Aggregate Float-Adjusted ex-CNY Index (100% hedged) in Australian dollars (before fees, costs and tax)|
|Cash||Bloomberg AusBond Bank Bill Index (before fees, costs and tax)|
Aware Super custom benchmarks
On 1 October 2020 we introduced custom benchmarks for our single asset class equities options: Australian Equities, Australian Equities SRI and International Equities.
In addition to excluding our fund-wide exclusions in relation to tobacco, thermal coal and controversial weapons, these custom benchmarks exclude, or have a reduced weighting to, the most carbon intensive companies from the respective benchmarks based on emissions and fossil fuel reserves data. This is consistent with our target to reduce the carbon exposure in our equities portfolio by at least 30% by 2023. Note that the benchmarks are dynamic and rebalanced each quarter, and the constituents can therefore change over time.
For more information on investment objectives, see the Member Booklet Supplement: Investments. If you are an income stream member, see the Member Booklet: Transition to retirement Income Stream (PDS) or the Member Booklet: Retirement Income Stream (PDS).
A custom index calculated by MSCI based on the responsible ownership criteria provided by Aware Super. For more information, refer to the section ‘Aware Super custom benchmarks’ above. ↩