Our asset classes
Below are descriptions of each of our asset classes to help you understand how your super is invested.
Shares are a type of investment that give you partial ownership of a company. They can be bought or sold on an exchange.
The value of shares is dependent on the performance of the company and the overall share market. Investing in shares can offer the potential for high returns. However, share prices can change quickly and by large amounts. This makes them a high-risk investment.
We invest in both Australian and international shares across a range of industries.
Note that our Australian and International shares asset classes may include a small allocation to unlisted companies.
Private equity is an investment in a company that isn’t listed on a public stock exchange. It can include Australian and international companies across a wide range of industries.
Private equity investments can generate strong returns for investors. However, they are generally not easily traded. This makes them high risk investments.
See examples of our private equity investments
Infrastructure investments are the systems and facilities that provide essential services to communities. It also includes the entities that own or operate them.
Infrastructure investments can include:
- utilities, such as electricity, gas and water
- energy, such as power, renewables and storage
- transport, such as toll roads, railways, airports and seaports
- social infrastructure, such as hospitals and convention centres
- digital, such as fibre and data centres
- registries, such as land and motor vehicle registries
- infrastructure-like agriculture, such as water and timber assets
Our infrastructure asset class can include both unlisted and listed infrastructure companies. However, it is currently fully invested in unlisted infrastructure assets.
See examples of our infrastructure investments
Property investments are investments in real estate. This can include commercial property such as office buildings, shopping centres, industrial estates. Or residential property such as apartment buildings and retirement villages, and property businesses.
We invest in property in two ways:
- directly – by buying a property
- indirectly - by buying units in a listed or unlisted property trust or company.
Listed property investments are traded on a public exchange like shares. They are an investment in their own right. Real Estate Investment Trusts, or REITs, are a common form of listed property. The returns from listed property investments are closely tied to the overall real estate market. However, their value can also be impacted by the overall mood of the stock market. This means their prices can change quickly and by large amounts. As a result, they are generally higher risk than direct or unlisted property investments.
Liquid alternatives are a type of alternative investment that can:
- provide diversifying sources of return
- help manage portfolio risk, and
- generally be readily converted into cash.
Examples of liquid alternatives include hedge funds and real return strategies.
We have both growth-orientated and defensive liquid alternatives investments.
- Growth-oriented - these strategies aim to generate strong capital growth, but can also carry a high level of risk.
- Defensive - these strategies aim to provide positive returns when share markets experience large negative returns.
Fixed income investments pay regular interest over a set term, usually at a fixed rate. They can include bonds and securitised assets.
A bond is a loan to a government or large corporation. The investor receives regular interest payments called coupons. The loan amount, known as the principal, is repaid to the investor when the loan period ends.
Securitised assets are created by bundling together debts, for example residential home loans, into tradeable securities. Investors in these securities receive regular payments similar to bond interest payments.
Like most other investments, the value of fixed income investments can go up and down. Changes that can affect their value include:
- interest rates and interest rate expectations
- circumstances of the individual lender
- economic conditions
- liquidity (how many buyers and sellers there are).
Fixed income investments can experience periods of low or negative returns. Learn more about fixed income
Credit income covers a range of debt investments. Like fixed income, credit income investments involve lending money to a borrower. However, compared to fixed income, the borrowers usually have a higher credit risk profile. Because of this, they typically pay a higher interest rate. This means the potential returns are higher than traditional fixed income. However, the risk of default is also greater.
Credit income includes loans to companies across a variety of industries such as:
- real estate
- financials, and
- different corporate sectors.
Cash includes term deposits and other short-term interest-bearing investments issued by banks.
Cash typically provides a low risk, short-term investment with fairly stable but lower returns compared to other asset classes.
The cash allocation for our diversified options can also include other short-term money market and debt securities. These types of cash investments can have the potential for higher returns, but also have modestly higher risk.
For more information on our asset classes, refer to the relevant Product Disclosure Statement or Handbook.