Investment Options

A range of options to suit you

SMARTpension has nine investments options. There are four Pre-mixed options and five Asset class options, providing a range of risk and return profiles.

You can choose between any of these nine investment options, switch at anytime (a $30 fee is charged for your seventh and subsequent switches that occur within a financial year) and have your account invested in one option or split between options.

Read more about making an investment choice.

Selecting investments that suit your lifestyle and situation can make a big difference to how long you pension lasts. Remember, you can spend longer in retirement than working!

Pre-mixed options
Investment option	Aggressive	Growth (This is the default option if you do not want to make an investment choice)	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
	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: 30%
		Bonds: 20%	Cash and cash-like assets²: 12.5%	Cash and cash-like assets²: 35%
Strategic asset allocation ranges³ This may include 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 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 allocation3
	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.	8 years.	4 years.	2 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 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.