Investment options

Strategies and objectives

Professional Associations Super aims to deliver net long-term investment returns for each investment option that exceed the annual rate of inflation by a specified amount that are consistent with each option's risk profile. These are monitored and reviewed on a regular basis to ensure they remain appropriate to achieving the Fund's investment objectives, as financial markets move over time.

Pre-mixed options
Investment option	Aggressive		Growth		Moderate		Stable
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.		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.		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.		This option is generally suitable for members who are focussed on short term returns and are averse to significant fluctuations in asset values over the short term.
Objective	To achieve a return (net of fees and taxes) of at least 4.0% a year above the CPI¹ over rolling 8-year periods.		To achieve a return (net of fees and taxes) of at least 3.0% a year above the CPI¹ over rolling 5-year periods.		To achieve a return (net of fees and taxes) of at least 2.5% a year above the CPI¹ over rolling 4-year periods.		To achieve a return (net of fees and taxes) of at least 2.0% a year above the CPI¹ over rolling 3-year periods.
Strategic asset allocation
	Aggressive		Growth (default)		Moderate		Stable
		Shares: 65%		Shares: 50%		Shares: 35%		Shares: 20%
		Property: 10%		Property: 10%		Property: 10%		Property: 7.5%
		Alternative assets: 20%		Alternative assets: 17%		Alternative assets: 12.5%		Alternative assets: 7.5%
		Private capital: 5%		Private capital: 3%		Bonds: 30%		Bonds: 40%
				Bonds: 20%		Cash and cash-like assets²: 12.5%		Cash and cash-like assets²: 25%
Strategic asset allocation ranges³ ^{This may include both overseas and Australian assets.}	Shares: 50% to 80%		Shares: 40% to 60%		Shares: 25% to 45%		Shares: 10% to 30%
	Property: 5% to 15%		Property: 5% to 15%		Property: 5% to 15%		Property: 5% to 15%
	Alternative assets: 15% to 30%		Alternative assets: 10% to 25%		Alternative assets: 5% to 20%		Alternative assets: 0% to 15%
	Private capital: 0% to 15%		Private capital: 0% to 10%		Private capital: 0% to 7.5%		Private capital: 0% to 5%
	Bonds: 0% to 5%		Bonds: 15% to 25%		Bonds: 25% to 35%		Bonds: 25% to 35%
	Cash and cash-like assets²: 0% to 10%		Cash and cash-like assets²: 0% to 10%		Cash and cash-like assets²: 5% to 15%		Cash and cash-like assets²: 30% to 40%
Minimum suggested investment timeframe	8 years.		5 years.		4 years.		3 years.
Risk level	This option may expect a negative return approximately 5 years in 20.		This option may expect a negative return approximately 4 years in 20.		This option may expect a negative return approximately 3 years in 20.		This option may expect a negative return approximately 2 years in 20.

Asset class options

Investment option

Australian Shares

Overseas Shares

Property

Bonds

Cash

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.

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.

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.

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 (weighted average of Australian sharemarket indices) over rolling 1-year periods.

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

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

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

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

Strategic asset allocation

Australian Shares

Overseas Shares

Property

Bonds

Cash

Australian shares: 100%

Overseas shares: 100%

Property: 100%

Bonds: 100%

Cash and cash-like assets²: 100%

Benchmark

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

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

80% Mercer/IPD Australian Pooled Property Fund Index + 20% UBS Global Investors Index Net of Withholding Tax ($A Hedged).

25% UBS Composite Bond Index (All Maturities) + 25% UBS Government Inflation Index (All Maturities) + 25% Barclays Capital Global Aggregate Index ($A Hedged) + 25% Barclays Capital Global World Government Inflation Linked Bond Index ($A Hedged).

UBS Bank Bill Index.

Minimum suggested investment timeframe

8 years.

4 years.

2 years.

Risk level

This option may expect a negative return approximately 6 years in 20.

This option may expect a negative return approximately 4 years in 20 and also carries potential liquidity risks in stressed markets.

This option may expect a negative return approximately 1 year in 20.

This option may expect a very low chance of negative returns in any 1 year.

1	CPI 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.
2	Includes term deposits, commercial paper and floating rate notes.
3	The 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.