Super SA’s options are invested across a range of asset classes. Descriptions of the underlying investments of each asset class are detailed below.
Super SA’s Socially Responsible option invests in AMP Capital's Responsible Investment Leaders Balanced Fund. It does not invest in the asset class portfolios listed below. The AMP Capital website has additional details on the target manager allocation and portfolio holdings.
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 (ie higher interest rates lead to lower bond prices and vice versa).
Inflation Linked Securities
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.
Diversified Strategies Income
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.
Australian and International Equities (shares)
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.
Diversified Strategies Growth
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.