Your investment options
You can choose any one or more of the five investment options offered by the MSB Board, as described below.
Choosing the right investment option for your super is an important decision affecting your financial future. The Product Disclosure Statement provides more information on the choices you have available. Call MilitarySuper on 1300 006 727 or order online to receive a hard copy.
If you need help making a decision you should seek advice from a licensed or appropriately authorised financial advisor.
TopCash
This strategy aims to maximise protection against capital loss. To do this it invests only in secure cash investments such as bank deposits, bills, mortgages and short term funds.
2007–08 Net Return 6.0%
Investment Objectives
- To achieve returns that match the UBS Bank Bill Index over a one year period.
- The investment focus of this option is short term and is provided for Members expecting to access their funds within 1-2 years and therefore seeking a greater degree of certainty in investment returns.
Level of Risk
- Very Low
Suitability
This strategy may be suitable if:
- You need your super within two years, and
- Your most important consideration is avoiding a negative return in any one year.
| Asset Class | Percentage |
|---|---|
| 1.Cash | 100% |
Conservative
This strategy invests in a conservative mix of assets, mostly debt instruments (such as fixed interest, infrastructure debt and cash), with some investment in shares and property.
2007–08 Net Return 2.7%
Investment Objectives
- To achieve returns that are greater than 1%(net) over the UBS Bank Bill Index over most rolling three year periods.
- This strategy is aimed at maintaining an extremely low risk of capital loss and is therefore provided for Members expecting to access their superannuation within 2-5 years and have a low appetite for investment risk.
Level of Risk
- Low
Investor Suitability
This strategy may be suitable if:
- You have two to five years until you need
your super, and - You are able to tolerate a degree of variability of returns over the short term with a view to achieving reasonable returns over the medium term.
| Asset Class | Percentage |
|---|---|
| 1.Cash | 20% |
| 2.Debt Instruments | 50% |
| 3.Property | 7% |
| 4.Australian Shares | 9% |
| 5.International Shares | 9% |
| 6.Private Equity | 0% |
| 7.Infrastructure | 3% |
| 8.Uncorrelated Alpha | 0% |
| 9.Alternative Debt | 0% |
Balanced
This strategy invests in a diversified mix of assets such as debt instruments (including infrastructure debt), but with a bias towards growth assets.
2007–08 Net Return -0.5%
Investment Objectives
- To achieve absolute returns of 8% (net) per annum over most rolling five-year periods.
Level of Risk
- Moderately Low
- Likelihood of a negative return is approximately one year in eight.
Investor Suitability
This strategy may be suitable if:
- You have five to seven years until you need
your super, and - You wish to achieve an attractive return over
the longer term and are able to tolerate a reasonably high level of variability in returns
over the short term.
| Asset Class | Percentage |
|---|---|
| 1.Cash | 5% |
| 2.Debt Instruments | 33% |
| 3.Property | 6% |
| 4.Australian Shares | 18% |
| 5.International Shares | 18% |
| 6.Private Equity | 5% |
| 7.Infrastructure | 8% |
| 8.Uncorrelated Alpha | 5% |
| 9.Alternative Debt | 2% |
Growth (Default Strategy)
This strategy invests mainly in assets with growth characteristics (including Private Equity, Infrastructure and Uncorrelated Alpha products) with some investment in property, debt instruments and cash. It currently has a bias towards listed equity markets. This bias towards market generated returns is being reduced through a greater exposure to unlisted growth asset classes such as Private Equity, Infrastructure, Property and Uncorrelated Alpha products such as hedge funds.
2007–08 Net Return -2.6%
Investment Objectives
- To achieve absolute returns of 10% (net) per annum over most rolling five year periods.
Level of Risk
- Moderate
- Likelihood of a negative return is approximately one year in seven.
Investor Suitability
This strategy may be suitable if:
- You have more than six years until you need
your super, and - You wish to achieve an attractive return over
the longer term and are able to tolerate a reasonably high level of variability in returns
over the short term.
| Asset Class | Percentage | |
|---|---|---|
| Actual* | Target | |
| 1.Cash | 10% | 2% |
| 2.Debt Instruments | 5% | 10% |
| 3.Property | 7% | 8% |
| 4.Australian Shares | 20% | 20% |
| 5.International Shares | 17% | 20% |
| 6.Private Equity | 17% | 10% |
| 7.Infrastructure | 11% | 14% |
| 8.Uncorrelated Alpha | 6% | 7% |
| 9.Alternative Debt | 7% | 9% |
Actual
Target
Top
High Growth
This is the most aggressive strategy. It invests exclusively in growth assets with no direct investment in cash, or debt instruments such as fixed interest. This options’ historically high dependence on returns generated by listed equity markets has been reduced through increased allocations to alternative growth assets such as Private Equity, Infrastructure, Property and Uncorrelated Alpha products such as hedge funds.
2007–08 Net Return -3.9%
Investment Objectives
To achieve absolute returns of 11% (net) per annum over most rolling seven year periods.
Level of Risk
- Moderately High
- Likelihood of a negative return is approximately one year in six.
Investor Suitability
This strategy may be suitable if
- You have seven or more years until you need your super, and
- You wish to achieve an attractive return over the longer term and are able to tolerate a reasonably high level of variability in returns over the short term.
| Asset Class | Percentage |
|---|---|
| 1.Cash | 0% |
| 2.Debt Instruments | 0% |
| 3.Property | 10% |
| 4.Australian Shares | 30% |
| 5.International Shares | 30% |
| 6.Private Equity | 15% |
| 7.Infrastructure | 5% |
| 8.Uncorrelated Alpha | 10% |
| 9.Alternative Debt | 0% |
