Pension investment options
Pension members have the choice of 11 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||Return objective||Likelihood of negative returns||Risk level|
|Cash||To at least match Bloomberg Ausbond Bank Bill Index over rolling 5-year periods (before administration fees but after investment fees and costs).||less than 6 months in every 20 years||Very low|
|Enhanced Cash||To outperform Bloomberg Ausbond Bank Bill Index over rolling 5-year periods (before administration fees but after investment fees and costs).||6 months to 1 year in every 20 years||Low|
|Overseas Shares||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.||5 years in every 20 years||High|
|Australian Shares||To outperform the return of the S&P/ASX300 Accumulation index, net of fees, over rolling 10-year periods.||6 years in every 20 years||Very high|
|Pre-mixed||Return objective* Outperform CPI with an average annual return, over rolling 10 year periods by||Likelihood of negative returns in every 20 years||Risk level|
|Conservative||+ 2.5%||1 to 2 years||Low to Medium|
|Conservative Balanced||+ 3.0%||2 to 3 years||Medium|
|Balanced Index||+ 3.5%||4 to 6 years||High|
|Balanced||+ 3.5%||3 to 4 years||Medium to High|
|Balanced Socially Responsible||+ 3.5%||4 to 6 years||High|
|Growth||+ 4.0%||4 to 6 years||High|
|High Growth||+ 4.5%||4 to 6 years||High|
*The annual return and return objectives listed are net of all fees and tax except the weekly $1.30 administration fee.
|Self-managed||Return objective||Likelihood of negative returns||Risk level|
|Direct Investment option||Self-determined||Self-determined||Self-determined|