Pension investment options
Pension members have the choice of 10 investment options, plus the Direct Investment option. Compare your options against your own risk appetite and return requirements.
Standard risk measure
legalsuper utilises the Standard Risk Measure, which is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than you may require to meet your objectives. You should still ensure you are comfortable with the risks and potential losses associated with your chosen investment options.
Single asset class
Cash
Return objective
- To at least match Bloomberg Ausbond Bank Bill Index over rolling 5-year periods (before administration fees but after investment fees and costs).
Likelihood of negative returns
- less than 6 months in every 20 years
Risk level
- Very low
Overseas Shares
Return objective
- To outperform the MSCI All Country World (ACWI) ex-Australia Index, 50% unhedged and 50% hedged into Australian dollars, net of fees, over rolling 10-year periods.
Likelihood of negative returns
- 5 years in every 20 years
Risk level
- High
Australian Shares
Return objective
- To outperform the return of the S&P/ASX300 Accumulation index, net of fees, over rolling 10-year periods.
Likelihood of negative returns
- 6 years in every 20 years
Risk level
- Very high
Pre-mixed
Conservative
Return objective* - Outperform CPI with an average annual return, over rolling 10 year periods by
- + 2.5%
Likelihood of negative returns in every 20 years
- 1 to 2 years
Risk level
- Low to Medium
Conservative Balanced
Return objective* - Outperform CPI with an average annual return, over rolling 10 year periods by
- +3.0%
Likelihood of negative returns in every 20 years
- 2 to 3 years
Risk level
- Medium
Balanced Index
Return objective* - Outperform CPI with an average annual return, over rolling 10 year periods by
- +3.5%
Likelihood of negative returns in every 20 years
- 4 to 6 years
Risk level
- High
Balanced
Return objective* - Outperform CPI with an average annual return, over rolling 10 year periods by
- +3.5%
Likelihood of negative returns in every 20 years
- 3 to 4 years
Risk level
- Medium to High
Growth
Return objective* - Outperform CPI with an average annual return, over rolling 10 year periods by
- +4.0%
Likelihood of negative returns in every 20 years
- 4 to 6 years
Risk level
- High
High Growth
Return objective* - Outperform CPI with an average annual return, over rolling 10 year periods by
- +4.5%
Likelihood of negative returns in every 20 years
- 4 to 6 years
Risk level
- High
*The annual return and return objectives listed are net of all fees and tax except the weekly $1.30 Administration fee.
