The tables below explain the inner workings of each investment option. They provide an excellent summary of the objectives, suitability and risk measures, so you can make an assessment as to what is best for you and your investment objectives.

 

Investment options

Growth (MySuper)

This is the default option if you do not want to make an investment choice

Suitability

This option is generally suitable for members with a medium term investment timeframe prepared to accept potentially modest to material fluctuations in asset values over shorter time periods. It is also the default option that members who do not exercise an investment choice will be invested in. Members may elect to make an investment choice at a later stage.

Objective

To achieve a return (net of fees and taxes) of at least 3% per year above the Consumer Price Index over rolling 5-year periods.

We have also formulated a return target for the Growth (MySuper) Option in accordance with legislative requirements. The return target is shown in the product dashboard that can be accessed at the Super section of the Kinetic Super website.

Strategic asset allocation

Shares 55%
Private capital 8%
Property 13%
Bonds 24%

Strategic asset allocation

This may include both overseas and Australian assets

Shares 35% to 75%
Property 3% to 23%
Private capital 0% to 18%
Bonds 14% to 34%
Cash and cash-like assets 0% to 10%

Minimum suggested investment timeframe

5 years

Risk band

6

Risk level

High

Estimated number of negative annual returns over any 20 year period

4 to less than 6

Pre-mixed options

Aggressive

Suitability

This option is generally suitable for members with a long term investment timeframe prepared to accept potentially material fluctuations in asset values over shorter time periods.

Objective

To achieve a return (net of fees and taxes) of at least 4.0% a year above the Consumer Price Index over rolling 8-year periods.

Strategic asset allocation

Shares 75%
Property 15%
Private capital 10%

Strategic asset allocation

This may include both overseas and Australian assets

Shares 55% to 95%
Property 5% to 25%
Private capital 0% to 20%
Bonds 0% to 10%
Cash and cash-like assets 0% to 10%

Minimum suggested investment timeframe

8 years

Risk band

6

Risk level

High

Estimated number of negative annual returns over any 20 year period

4 to less than 6

Moderate

Suitability

This option is generally suitable for members with a medium term investment timeframe prepared to accept potentially modest fluctuations in asset values over shorter time periods.

Objective

To achieve a return (net of fees and taxes) of at least 2.5% a year above the Consumer Price Index over rolling 4-year periods.

Strategic asset allocation

Shares 35%
Property 13%
Bonds 35%
Cash and cash-like assets 17%

Strategic asset allocation

This may include both overseas and Australian assets

Shares 15% to 55%
Property 3% to 23%
Private capital 0% to 10%
Bonds 25% to 45%
Cash and cash-like assets 7% to 27%

Minimum suggested investment timeframe

4 years

Risk band

5

Risk level

Medium to high

Estimated number of negative annual returns over any 20 year period

3 to less than 4

Asset class options

Australian shares

Suitability

This option is generally suitable for members with a long term investment timeframe prepared to accept potentially material fluctuations (and reductions) in asset values over shorter time periods.

Objective

To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of Australian sharemarket indices as outlined below) over rolling 1-year periods.

Strategic asset allocation

100%

Benchmark

50% S&P/ASX 200 Accumulation Index
+
50% S&P/ASX 300 Accumulation Index.

Minimum suggested investment timeframe

8 years

Risk band

7

Risk level

Very high

Estimated number of negative annual returns over any 20 year period

6 or greater

Overseas shares

Suitability

This option is generally suitable for members with a long term investment timeframe prepared to accept potentially material fluctuations (and reductions) in asset values over shorter time periods.

Objective

To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of overseas sharemarket indices as outlined below) over rolling 1-year periods.

Strategic asset allocation

100%

Benchmark

60% MSCI World (ex-Aust) Index with net dividends reinvested ($A Unhedged)
+
30% MSCI World (ex-Aust) Index with net dividends reinvested ($A Hedged)
+
10% MSCI Emerging Markets Index with net dividends reinvested ($A Unhedged).

Minimum suggested investment timeframe

8 years

Risk band

6

Risk level

High

Estimated number of negative annual returns over any 20 year period

4 to less than 6

Property

This may include both overseas and Australian assets

Suitability

This option is generally suitable for members with a medium term investment timeframe prepared to accept modest fluctuations in asset values over shorter time periods.

Objective

To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of Australian and overseas property market indices as outlined below) over rolling 1-year periods.

Strategic asset allocation

100%

Benchmark

80% Mercer/IPD Australian Pooled Property Fund Index
+
20% FTSE EPRA/NAREIT Developed Index Hedged to AUD (Net of Withholding Tax).

Minimum suggested investment timeframe

4 years

Risk band

6

Risk level

High

Estimated number of negative annual returns over any 20 year period

4 to less than 6

Bonds

This may include both overseas and Australian assets

Suitability

This option is generally suitable for members who seek short term returns above cash and protection against fluctuations in asset values over shorter time periods.

Objective

To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of Australian and overseas bond market indices as outlined below) over rolling 1-year periods.

Strategic asset allocation

100%

Benchmark

45% Bloomberg AusBond Composite Index
+
30% Bloomberg Barclays Global Aggregate Index ($A Hedged)
+
25% Bloomberg AusBond Inflation Government Index

Minimum suggested investment timeframe

2 years

Risk band

4

Risk level

Medium

Estimated number of negative annual returns over any 20 year period

2 to less than 3

Cash

Suitability

This option is generally suitable for members concerned about capital preservation.

Objective

To achieve a return (net of fees and taxes) that exceeds the benchmark (the Bloomberg Ausbond Australian Bank Bill Index) over rolling 1-year periods.

Strategic asset allocation

100%

Benchmark

Bloomberg Ausbond Australian Bank Bill Index.

Minimum suggested investment timeframe

2 years

Risk band

1

Risk level

Very low

Estimated number of negative annual returns over any 20 year period

Less than 0.5

1CPI stands for Consumer Price Index, which is a measure of the rate of price inflation that compares the changes in prices in a standard basket of goods and services consumed by Australian households.
2Includes term deposits, commercial paper and floating rate notes.
3The strategic asset allocation ranges are a guide to how asset classes may be invested within each investment option. These ranges show the maximum and minimum limits which the Trustee may invest in an asset class for each investment option. The Trustee regularly reviews the asset allocations and may alter them within the ranges over time.