Asset Classes

Asset Classes

Super SA’s options are invested across a range of asset classes. Descriptions of the underlying investments of each asset class are detailed below.
  • These are investments in assets that can be cashed in quickly. It includes bank bills, overnight cash and short-dated term deposits.
  • These investments are usually in the form of loans to governments or companies who pay a fixed rate of interest for the term of the loan. Returns tend to be better than cash over the long term, but lower than property and shares.

    Returns can fluctuate and can be negative, as these investments are valued daily and can change depending on movements in interest rates and general market conditions. Bond prices typically move in the opposite direction to interest rates (I.e. higher interest rates lead to lower bond prices and vice versa).
  • These investments are similar to those described for the Fixed Interest asset class. However, they have the additional feature of being linked to a measure of the general level of prices in the economy, such as the Consumer Price Index (CPI). Returns can fluctuate and can be negative.
  • These are investments in higher yielding fixed income securities, and include investments in the form of loans to companies and emerging markets. It also includes alternative investment strategies that are expected to benefit from the more volatile financial market environment (referred to as 'absolute return' strategies). Returns tend to fluctuate and can be negative.
  • These are investments in Australian unlisted property trusts and property securities listed on the Australian Securities Exchange. It includes retail, office and industrial property. There's potential for these property assets to provide moderate to higher returns over the long term, however the value of the assets can fluctuate dramatically and there can be negative returns.
  • These are investments in companies listed on the Australian or international stock exchanges. Dividends provide income although they can't be guaranteed. Share prices can fluctuate dramatically and can be frequently negative, which makes them high risk, but there's potential for high capital growth over the long term.
  • These are investments in a diverse range of assets, including private companies and infrastructure. Returns tend to fluctuate and can be negative. These assets carry a high level of risk.
    International assets are 100% hedged to the Australian dollar, with the exception of the International Equities asset class, whereby 20% of the developed markets component is hedged to the Australian dollar.
The superannuation schemes administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). Super SA is not required to hold an Australian Financial Services Licence to provide general advice about a Super SA product. The information in this publication is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Super SA recommends that before making any decisions about its products you consider the appropriateness of this information in the context of your own objectives, financial situation and needs, read the Product Disclosure Statement (PDS) and seek financial advice from a licensed financial adviser in relation to your financial position and requirements. 

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