Single asset classes
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 asset classes
Conservative
Return objective*
Outperform CPI with an average annual return, over rolling 10 year periods by + 2.0%
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 +2.5%
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 +3.0%
Likelihood of negative returns in every 20 years
4 to 6 years
Risk level
High
MySuper 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
3 to 4 years
Risk level
Medium to High
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
3 to 4 years
Risk level
Medium to High
Balanced Socially Responsible
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
4 to 6 years
Risk level
High
Growth
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
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
Direct Investment option
- Return objective: Self-determined
- Likelihood of negative returns: Self-determined
- Risk level: Self-determined
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.