super investment options

Investment objective

Medium term (5 years) CPI + 3.0%
Long term (10 years) CPI + 3.5%

Aims to optimise returns while only occasionally having a return less than zero.

Type of investor this option may suit

Assertive

Strategy

Invests in a diversified but balanced mix of assets. Aims to provide a less volatile return than would otherwise be expected in an investment with its investment objective.

Probable number of negative annual returns over 20 years

3 to less than 4

Suggested minimum investment timeframe

5 to 7 years

Investment objective

Medium term (5 years) CPI + 1.5%
Long term (10 years) CPI + 2.0%

Aims for the lowest year-to-year variation in returns of all Ready-Made Investment Pools, although with lower expected rates of return than Core Pool over the long term.

It is designed to:

• be the most conservative of HESTA Pools
• offer members a low-risk investment
• seek greater returns than cash alone.

Type of investor this option may suit

Defensive

Strategy

Asset allocation includes:

• more exposure to cash and debt markets than other Ready-Made Pools
• approximately 25% of investments in shares.

Shares tend to have a low correlation, or relationship, with cash and debt and as one rises in value, the other may be expected to fall. Investing a proportion in shares helps reduce risk while enhancing the potential return over the longer term.

Probable number of negative annual returns over 20 years

1 to less than 2

Suggested minimum investment timeframe

1 to 3 years

Investment objective

Medium term (5 years) CPI + 3.5%
Long term (10 years) CPI + 4.0%

Aims to provide higher long-term returns than Core Pool. Since there may be substantial year-to-year variation in returns, even in the longer-term, it may not outperform other Pools. It has a diversified portfolio that includes assets other than shares.

Type of investor this option may suit

Aggressive

Strategy

Has a mixed asset allocation, with more exposure to the share market than Core Pool. However, its diversification means that it has a lower risk profile than an investment in shares alone.

Probable number of negative annual returns over 20 years

4 to less than 6

Suggested minimum investment timeframe

7 to 10 years

Investment objective

Medium term (5 years) CPI + 3.0%
Long term (10 years) CPI + 3.5%

Aims to optimise long-term returns while investing in companies that demonstrate best practice sustainability performance within their industry sector, relative to their peers.

Its high allocation to shares means there is likely to be significant year-to-year variation in returns. It may be more suitable for an investor with a higher tolerance to investment risk. Although we expect long-term returns similar to Core Pool, it may not outperform other pools, even in the long term.

Type of investor this option may suit

Aggressive

Strategy

Invests in companies with superior environmental, social and governance performance as assessed by our managers. Eco Pool has investment exclusions concerning uranium, fossil fuels, tobacco and controversial weapons. Property investments are screened to ensure they meet appropriate environmental requirements. Currently, the private equity investments are in sustainable investments.

Probable number of negative annual returns over 20 years

4 to less than 6

Suggested minimum investment timeframe

7 to 10 years

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, equivalent to or higher than the return (net of tax^##) of the Bloomberg AusBond Bill Index. Is the most conservative of the Your Choice options and aims to achieve its investment objectives each year.

Type of investor this option may suit

Cautious

Or, an investor seeking to create their own diversified portfolio, who would like to include cash and cash products. 

Strategy

Cash is primarily invested in at-call bank deposits, along with an allocation to short-dated term deposits. It may include a small allocation to other cash investments.

Probable number of negative annual returns over 20 years

Less than 0.5

Suggested minimum investment timeframe

Less than 1 year

^## Estimated tax rate provided by independent investment consultant.

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, equivalent to or higher than the return (net of tax^##) of the combination of:

• 50.0% Bloomberg AusBond Composite 0+ Year Index
• 50.0% Barclays Capital Global Aggregate ex -Australia Index Hedged to $A

Aims to achieve its investment objective over the long-term (10 years).

Global Bonds:

• is less conservative than Your Choice – Cash
• may produce a negative return, but
• is more conservative than other Your Choice options.

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include debt and other fixed interested investments.

Strategy

Is 100% invested in bonds and other debt products. The underlying investments are similar for this asset class in Core Pool, being a range of global debt products, but excluding some unlisted debt that is considered higher risk. All currency exposures in international debt are fully hedged.

Probable number of negative annual returns over 20 years

1 to less than 2

Suggested minimum investment timeframe

1 to 3 years

^## Estimated tax rate provided by independent investment consultant.

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, equivalent to or higher than CPI + 3.0%.

Aims to achieve its investment objective over the long-term (10 years). It is less conservative than cash or bonds, as it has a higher chance of producing a negative return. However, it is more conservative than the remaining Your Choice options.

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include Australian and international property.

Strategy

Is invested primarily in unlisted property products, and has a 10% holding in cash investments. Your Choice - Property investments are managed in a similar style to that used by Core Pool for this asset class.

Probable number of negative annual returns over 20 years

2 to less than 3

Suggested minimum investment timeframe

5 to 7 years

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, equivalent to or higher than CPI + 3.0%.

Aims to achieve its investment objective over the long-term (10 years). It has holdings in unlisted infrastructure companies. Although these holdings are not considered speculative, they are likely to produce negative returns from time-to-time as their returns are expected to comprise of capital gains (or losses) and income. Returns should be less volatile than other equity investments as the earnings of these companies are expected to be relatively stable.

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to infrastructure assets.

Strategy

Is invested primarily in unlisted infrastructure products with a 10% holding in cash products. It will have investments in both Australian and international infrastructure. The underlying investments are similar to those for this asset class in Core Pool.

Probable number of negative annual returns over 20 years

3 to less than 4

Suggested minimum investment timeframe

5 to 7 years

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, equivalent to or higher than the return (net of tax^##) of the combination of:

• 77.5% MSCI World ex-Australia Index in $A Net Dividends Reinvested
• 22.5% MSCI Emerging Markets Index in $A Net Dividends Reinvested
• 50/50 $A Hedged/Unhedged

Aims to achieve its investment objective over the long-term (10 years). It aims to produce a long-term return primarily from capital gains, but carries the risk of producing negative returns quite frequently.

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to listed international shares.

Strategy

The underlying investments in Your Choice - International Shares are similar for this asset class in Core Pool. The currency exposures in international shares are managed under our active currency overlay program policy. It may include managers who also short sell shares.

Probable number of negative annual returns over 20 years

4 to less than 6

Suggested minimum investment timeframe

7 to 10 years

^## Estimated tax rate provided by independent investment consultant.

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, equivalent to or higher than the return (net of tax^##) of the S&P/ASX 300 Accumulation Index. 

Aims to achieve its investment objective over the long term (10 years). It aims to produce long-term returns primarily from capital gains, but carries the risk of producing negative returns quite frequently.

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to listed Australian shares.

Strategy

The underlying investments in Your Choice - Australian Shares are similar for this asset class in Core Pool. Your Choice - Australian Shares investments are managed in a style similar to that used by Core Pool for this asset class. It can hold a small percentage of its assets in shares of companies not listed on the Australian Stock Exchange. It may include managers who also short sell shares.

Probable number of negative annual returns over 20 years

6 or greater

Suggested minimum investment timeframe

7 to 10 years

^## Estimated tax rate provided by independent investment consultant.

Investment objective

Over the long term, to earn an after-tax return after investment fees and indirect costs, at least 3.0% higher than the return (net of tax^##) of the combination of:

• 13.5% S&P/ASX 300 Accumulation Index
• 76.5% MSCI ACWI ex-Australia in $A Net Dividends Reinvested Hedged
• 10.0% Bloomberg AusBond Bank Bill Index

Aims to achieve its investment objective over the long term (10 years). It targets high long term returns, primarily from capital gains, but carries the risk of producing negative returns quite frequently.

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to Australian and international private equity products.

Strategy

Invests primarily in Australian and international private equity and also has a 10% holding in cash products. The underlying investments are similar to those for this asset class in Core Pool.

Probable number of negative annual returns over 20 years

4 to less than 6

Suggested minimum investment timeframe

7 to 10 years

^## Estimated tax rate provided by independent investment consultant.