Investment guide 1 July 2020 - TelstraSuper
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Investment
guide
1 July 2020Telephone 1300 033 166 www.telstrasuper.com.au contact@telstrasuper.com.au The information in this document forms part of the Product Disclosure Statement (PDS) for TelstraSuper Corporate Plus dated 1 July 2020 and TelstraSuper Personal Plus dated 1 July 2020. You should read the information in this document (which forms part of the Product Disclosure Statement) before making a decision. © Telstra Super Pty Ltd. ® is a registered trademark in Australia of Telstra Corporation Limited. Telstra Super Pty Ltd ABN 86 007 422 522, AFSL 236709 is the trustee of the Telstra Superannuation Scheme ABN 85 502 108 833 (TelstraSuper) and is referred to throughout this Product Disclosure Statement as “the Trustee”, “our”, “we” or “us”. TelstraSuper MySuper authorisation number 85502108833326.
About this Guide Contents
This Guide provides you with 01 Types of assets 04
information about TelstraSuper’s
investment options, including 02 Investment options 06
TelstraSuper’s MySuper arrangement,
the different types of asset classes
03 Choosing an investment option 21
and member investment choice and 04 Risks of super 23
also explains how diversification
helps to reduce investment risk. 05 Environmental, Social and
Governance (ESG) Considerations 24
For information about the cost of
managing your investment refer to 06 Stay informed 24
the ‘Fees and other costs’ section
of the Additional Information
About Your Super Guide.
When reading this Guide, keep in mind
how you invest your super depends
upon your attitude to risk, the number
of years you have until retirement
and your own financial plans.
As you move through different stages
in your life, your financial needs will
change. So too will your appetite for
return and your tolerance for risk.01
Private Markets
Private Market investments are predominantly invested in
unlisted assets. The investment may occur through, for
Types of assets example, a limited partnership or limited liability company
which then invests in underlying businesses. The money
invested in the underlying businesses is generally used
to expand or develop the business or facilitate founders
Investing is not as complex as it may seem, selling the business to new shareholders. Private Markets
especially once you understand what present opportunities to invest in assets that are not
listed on a stock exchange. A return on your investment is
makes up an investment and a few simple received when the business pays a dividend or a Private
investment principles. Markets manager sells or revalues an asset they have
invested in using your capital.
What makes up an investment?
Defensive assets
There are two major types of assets that make up the
building blocks of an investment: growth assets and Defensive assets include Fixed Interest and Cash, which
defensive assets. earn returns primarily from interest. This means that these
types of assets usually provide lower risk due to fixed
Growth and defensive assets have different levels of risk repayments, however, returns are also likely to be lower
and expected return. over the long-term. For example, when you put some
money aside in a term deposit with a bank you may not
To help you invest in the assets that best suit you, we offer be getting the highest interest rates available, but you can
a range of investment options that invest in both growth confidently expect that after a fixed period the bank will
and defensive assets in varying percentages. Some assets pay you the pre-determined interest rate and return your
have characteristics of both growth and defensive assets. investment amount to you.
We call these 'mixed assets'.
Cash
Growth assets Cash includes investments in bank bills, commercial
paper, negotiable certificates of deposit, bank deposits,
Growth assets include Shares and Listed Property Trusts commercial promissory notes and other money market
that earn income from dividends and rent and may instruments commonly for short periods of time. This
increase in value from capital gains. Capital gain is the rise investment class is the most secure because the returns
in an asset’s value. are the most predictable due to the nature of the issuers
and the short duration of the securities but it generally
However, it is important to know that the total value of
earns a lower rate of return over the long term.
these assets can be volatile, that is, they can rise and fall,
particularly in the short-term.
Fixed Interest
For example, you may have noticed how the share price Fixed Interest can be bonds and other debt securities
for a company can vary each day. issued by a government or corporation (sometimes
referred to as credit). Credit (as explained below) forms a
Shares (equities) significant part of this asset class. If you invest in Fixed
Shares represent ownership in a company and are often Interest, you lend money to the issuer who promises to
referred to in investment terms as ‘equities’. Potential make regular interest payments with full repayment on an
returns from shares are typically earned from both agreed date in the future.
dividends and capital appreciation. They can generally
be bought and sold on the stock exchange and offer Credit
the opportunity for high returns, but also the potential Credit is issued by both domestic and international
for high risk. corporations in the form of bonds that carry a rating from
credit rating agencies. The primary focus of TelstraSuper’s
Listed Property Trusts (Real Estate Investment Trusts) credit portfolio is to gain exposure to investment grade
Listed Property Trusts are investments in property-related bonds, although holding below investment grade bonds is
businesses that are listed on a stock exchange. These permitted in limited circumstances. Credit forms a significant
businesses are involved in the ownership, development, part of the Defensive Growth option (see page 10).
financing and/or management of properties. Returns are
derived from distributions paid by the securities as well as Income Securities
changes in the market value of these securities. These are securities that provide a relatively high income
yield that is floating in nature. In other words, the income
yield changes in response to changes in short-term interest
rates. These securities can provide protection in rising
interest rate environments but may lose value in times of
credit stress.
04These securities are issued by corporations and high yield debt. Typically, these securities are either not
other non-government borrowers, and include hybrid rated by credit rating agencies or have a lower rating than
securities, which are listed on a stock exchange and pay assets held in the “Credit” asset class. Alternative Debt
regular coupon income, as well as mortgages secured is riskier and less liquid than Fixed Interest or Credit, but
by real property. offers higher expected returns over the longer term.
Opportunities
Mixed assets
Investment in Opportunities provides the ability to
Infrastructure, Unlisted Property, Alternative Debt, capitalise on one-off market opportunities as they
Opportunities and Hedge Funds possess characteristics arise. These investments are not directly aligned with
of both defensive and growth assets. one specific asset class but provide TelstraSuper with
the flexibility to improve returns by exploiting unique or
Infrastructure unusual opportunities to add value.
Infrastructure assets consist of a broad range of assets
including toll roads, ports, gas pipelines, airports, utility Hedge Funds
providers and more. Infrastructure assets are typically Hedge Funds are managed funds that trade securities
monopolistic in nature with high barriers to entry and with the aim of generating returns well in excess of cash
steady reliable cashflows. Such cashflows are usually over the long-term, but with less volatility than would be
underpinned by a contractual or regulatory right to expected from shares. Hedge Funds invest across a broad
revenue. Infrastructure investments can be made directly, mix of investment strategies where the sources of returns
through unlisted funds or through listed infrastructure are diversified.
companies. The sources of return are the earnings of the
assets as well as increases (or decreases) in capital value
over time. The level of risk of these investments varies Foreign Currency Exposure
depending on the nature of the asset and the regulatory TelstraSuper manages foreign currency risk internally
regime under which they operate. and the foreign currency exposure varies per option as
specified in the relevant Investment mix and asset ranges
Unlisted Property charts.
Unlisted Property is investments in residential,
commercial, industrial and retail real estate. These
investments can include equity or loans secured by Asset class volatility
property assets. Property investments can provide returns The general nature of investment markets causes
in two ways: investment returns to fluctuate over time. Influences such
as world politics, demand and both domestic and global
• through income from rental or income payments, and economies all influence returns on investment. Due to
• by increases (or decreases) in the capital value these factors some asset classes tend to fluctuate to a
of investments over time. higher degree and more frequently than others.
Unlisted Property can be held directly or through unlisted For example, concern over sovereign debt has the
property trusts. potential to impact Fixed Interest markets while economic
growth in emerging markets may have a flow-on effect to
Alternative Debt local share markets.
Alternative Debt includes a range of credit securities such
as loans to companies, mortgages, securitised debt and
0502
the Association of Superannuation Funds of Australia
(ASFA) and the Financial Services Council (FSC) in
July 2011 by adopting the Standard Risk Measure (SRM)
Investment options
categories below.
The SRM requires the reporting of risk by ‘Risk Bands’ and
As a TelstraSuper member you can choose from a ‘Risk Labels’. There are seven risk bands with risk labels
broad range of investment options, covering all major ranging from ‘Very Low’ to ‘Very High’. The risk bands relate
asset classes, to suit the conservative through to the to a measure of the estimated number of negative annual
aggressive investor. returns in a 20 year period (see table below).
You can choose to invest in the following investment
options: Growth, Balanced, Diversified Income, Defensive Asset ranges
Growth, Conservative, Australian Shares, International Many investment options invest in different asset classes
Shares, Property, Fixed Interest, Cash or a combination within defined ranges. We use the asset ranges to take
of options. We also offer an investment option called advantage of market opportunities and vary the levels
Direct Access which provides access to term deposits of investment in each asset class from time to time. The
and ASX300 shares and other listed securities such as asset ranges are displayed in brackets next to the target
Exchange Traded Funds (ETFs), approved by us. investment mix figures for these options on pages 7 to 20.
For more information regarding the Direct Access Varying the investment mix within these ranges may also
investment option, refer to the Direct Access Guide cause the split between growth and defensive assets to
available at telstrasuper.com.au/pds vary from the target investment mix from time to time.
If you don’t make an investment choice when you join
TelstraSuper, you’ll automatically be defaulted into Changes to our investment options
TelstraSuper’s MySuper arrangement that consists of
three age-based investment stages: MySuper Growth for We monitor our investment options and investment
members aged under 45, MySuper Balanced for members managers on a regular basis. We may close or change any
aged 45 to under 65 and MySuper Conservative for investment option at any time. You’ll be given notice of any
members aged 65 and over. such changes, should they occur.
The following pages outline each option to help you
Investment option risk measures think about your future and the way your money can
grow over time.
The Trustee seeks to satisfy the requirements of
the Standard Risk Measure guidance released by
ASFA/FSC Standard Risk Measure (SRM) categories
Estimated number of negative annual returns over
Risk Label Risk Band
any 20 year period
Very Low 1 Less than 0.5
Low 2 0.5 to less than 1
Low to Medium 3 1 to less than 2
Medium 4 2 to less than 3
Medium to High 5 3 to less than 4
High 6 4 to less than 6
Very High 7 6 or greater
The SRM categories detailed above are applied to each investment option in this guide.
06Growth option
Objective Return objective
To build an investment portfolio to achieve the stated
Outperform CPI+3.5%p.a.
return objective within the stated risk parameters over the
specified timeframe.
Investment timeframe
Who should invest? 7 to 10 year periods.
This option suits those who are seeking high growth and
are comfortable with high levels of volatility in returns, Risk objective
particularly over the short-term. Compared to the other A high level of risk expected to generate 4 to less than
options available in TelstraSuper, this option involves a 6 negative annual returns over any 20 year period.
higher level of risk to target greater returns over the longer
term. As a result, the value of your investment may rise or Long-term strategic investment mix*
fall in the short-term. 87.5% growth assets,
12.5% defensive assets.
Investment strategy
Strong bias towards growth assets, such as Australian and
International Shares, and Listed Property Trusts, with a
smaller allocation towards mixed assets such as Unlisted
Property and Infrastructure and defensive assets such as
Cash.
Investment mix and asset ranges
International Shares 40% (20-60%)
Australian Shares 30% (10-50%)
Unlisted Property 10% (0-25%)
Infrastructure 7% (0-15%)
Private Markets 5% (0-15%)
Alternative Debt 4% (0-20%)
Cash 2% (0-10%)
Listed Property Trusts 2% (0-10%)
Australian Fixed Interest 0% (0-15%)
Credit 0% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
International Fixed Interest 0% (0-15%)
Opportunities 0% (0-10%)
Foreign Currency Exposure (10-50%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
07Balanced option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+3%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
5 to 10 year periods.
Who should invest?
This option suits those who are seeking growth and are Risk objective
comfortable with volatility of returns, particularly over the A high level of risk expected to generate 4 to less than
short-term. This option is designed to provide lower levels 6 negative annual returns over any 20 year period.
of risk and return than the Growth option, but higher
long-term returns than the Conservative and Cash options.
Long-term strategic investment mix*
Investment strategy 71.5% growth assets,
28.5% defensive assets.
The Balanced option has a moderate bias towards growth
assets, such as Australian and International Shares, and
Listed Property Trusts, balanced by an allocation towards
defensive assets such as Fixed Interest Securities and
Cash, and mixed assets such as Unlisted Property and
Infrastructure.
Investment mix and asset ranges
International Shares 30% (10-50%)
Australian Shares 24% (0-40%)
Unlisted Property 10% (0-25%)
Australian Fixed Interest 7.5% (0-20%)
Infrastructure 7% (0-15%)
Cash 6% (0-15%)
Private Markets 5% (0-15%)
Alternative Debt 4% (0-20%)
International Fixed Interest 2.5% (0-15%)
Credit 2% (0-10%)
Listed Property Trusts 2% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
Opportunities 0% (0-10%)
Foreign Currency Exposure (5-45%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
08Diversified Income option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+2%p.a.
return objective within the stated risk parameters over the
specified timeframe and to produce a distributable income Investment timeframe
above the Cash rate over the medium-term, while also 4 to 6 year periods.
aiming for stability in the value of capital.
Risk objective
Who should invest?
A medium to high level of risk expected to generate
Members who are looking for an income stream, 3 to less than 4 negative annual returns over any 20
while still seeking some growth on their initial investment year period.
capital. A minimum investment of $100,000 applies.
Long-term strategic investment mix*
Investment strategy
54.5% growth assets,
The Diversified Income option is uniquely structured to 45.5% defensive assets.
distribute income it receives from investments, allowing
members to fund part of their retirement needs without
the need to sell capital assets.
When selecting investments, preference is made for
expected returns predominately driven by income rather
than capital growth. Income is accrued as underlying
investments pay income distributions during the month.
Due to the varying income distributions of the underlying
investments, the income payment to members will vary
from month to month.
Investment mix and asset ranges
Diversified Fixed Interest 19% (0-50%)#
Australian Shares 17.5% (10-35%)
International Shares 17.5% (0-35%)
Unlisted Property 13% (0-25%)
Cash (includes term deposits) 11% (0-20%)
Infrastructure 10% (0-20%)
Alternative Debt 8% (0-25%)
Listed Property Trusts 4% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
Opportunities 0% (0-10%)
Private Markets 0% (0-10%)
Foreign Currency Exposure (0-30%)
# Diversified Fixed Interest comprises Australian
and International Fixed Interest and Credit securities.
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
09Defensive Growth option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+2%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
4 to 6 year periods.
Who should invest?
Members who want the potential for moderate investment Risk objective
growth but with greater security than the Balanced or A medium to high level of risk expected to generate
Growth options. This option is designed to give more 3 to less than 4 negative annual returns over any 20
flexibility for members who might be looking to access year period.
their super in the short to medium-term and who want to
continue participating in capital growth.
Long-term strategic investment mix*
Investment strategy 54.5% growth assets,
45.5% defensive assets.
The Defensive Growth option is uniquely structured to
adjust its exposure to a range of growth and defensive
assets, based on the performance and confidence of
investment markets at any point in time.
When investing in growth assets, it does so in a way that
aims to reduce volatility. For example, by investing in
stable businesses with long histories of reliable cash flows
and profitability.
Investment mix and asset ranges
International Shares 23% (0-40%)
Australian Shares 17% (0-35%)
Unlisted Property 12% (0-25%)
Australian Fixed Interest 10.5% (0-25%)
Credit 10% (0-20%)
Infrastructure 10% (0-20%)
Alternative Debt 7% (0-25%)
Cash 6% (0-15%)
International Fixed Interest 4.5% (0-15%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
Listed Property Trusts 0% (0-10%)
Opportunities 0% (0-10%)
Private Markets 0% (0-10%)
Foreign Currency Exposure (0-35%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
10Conservative option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+1.5%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
3 to 10 year periods.
Who should invest?
Those who want to maintain some growth, with a lower Risk objective
risk of capital loss than the Balanced or Growth options. A low to medium level of risk expected to generate
1 to less than 2 negative annual returns over any 20
Investment strategy year period.
The Conservative option has a bias towards defensive
assets, in particular a high weighting towards Cash, to Long-term strategic investment mix*
minimise short-term fluctuations (risk) but has some 35% growth assets,
exposure to growth assets for long-term growth (return). 65% defensive assets.
Investment mix and asset ranges
Australian Fixed Interest 21% (5-35%)
Cash 21% (10-30%)
International Fixed Interest 14% (0-25%)
International Shares 14% (0-30%)
Australian Shares 10% (0-30%)
Unlisted Property 10% (0-25%)
Infrastructure 5% (0-15%)
Alternative Debt 3% (0-20%)
Listed Property Trusts 2% (0-10%)
Credit 0% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
Opportunities 0% (0-10%)
Private Markets 0% (0-10%)
Foreign Currency Exposure (0-30%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under the TelstraSuper's Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
11International Shares option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+3.5%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
8 to 10 year periods.
Who should invest?
Those who want to achieve potentially high returns in the Risk objective
long-term through exposure to International Shares, while A high level of risk expected to generate 4 to less than
being willing to accept a high level of volatility in returns. 6 negative annual returns over any 20 year period.
Investment strategy Long-term strategic investment mix
The International Shares option has 100% exposure to 100% growth assets.
International Shares, and is invested through several
investment managers. It aims to achieve exposure
to industries and companies that are not part of the
Australian share market.
Investment mix and asset ranges
International Shares 100%
Foreign Currency Exposure (20-80%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
12Australian Shares option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+3.5%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
8 to 10 year periods.
Who should invest?
Those who want to achieve potentially high returns in Risk objective
the long-term through exposure to listed Australian A very high level of risk expected to generate 6 or more
Shares, while being willing to accept a high level of negative annual returns over any 20 year period.
volatility in returns.
Long-term strategic investment mix
Investment strategy
100% growth assets.
100% of the option is invested in listed Australian
companies. Diversification is achieved through exposure
to a number of investment managers with different
styles of investing.
Investment mix and asset ranges
Australian Shares 100%
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
13Property option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+3%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
5 to 7 year periods.
Who should invest?
Those who wish to generate investment returns through Risk objective
investing in property and accept that this option involves a A medium to high level of risk expected to generate
moderate level of risk. 3 to less than 4 negative annual returns over any 20
year period.
Investment strategy
The Property option invests exclusively in property-based Long-term strategic investment mix
assets, including both Listed Property Trusts and Unlisted 57.5% growth assets,
Property. For diversification reasons, this may include 42.5% defensive assets.
investment in international property and mortgages or
loans secured by property assets.
Investment mix and asset ranges
Unlisted Property 85% (70-100%)
Listed Property Trusts 15% (0-30%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
14Fixed Interest option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI.
return objective within the stated risk parameters over
the specified timeframe. In the short-term, returns can be Investment timeframe
negative from time to time. 4 to 6 year periods.
Who should invest? Risk objective
Those who are seeking an investment option where A medium level of risk expected to generate
returns are determined by a combination of income 2 to less than 3 negative annual returns over any 20
payments and changes in capital values caused by year period.
changes in interest rates. This option generally provides
lower risk and returns than Shares, but can still deliver
Long-term strategic investment mix
negative returns.
100% defensive assets.
Investment strategy
The Fixed Interest option invests primarily in Australian
and International Fixed Interest Securities, including
fixed, variable and floating interest rate securities issued
by government bodies and companies, as well as asset
and mortgage-backed securities and mortgages or loans
secured by property assets. It may also have exposure to
Cash, up to a maximum of 50%.
Investment mix and asset ranges
Australian Fixed Interest 80% (65-95%)
International Fixed Interest 20% (5-35%)
Cash 0% (0-50%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
15Cash option
Objective Return objective
To build an investment portfolio to achieve the stated Outperform the Bloomberg AusBond Bank Bill Index, on a
return objective within the stated risk parameters over the pre-tax basis*.
specified timeframe.
Investment timeframe
Who should invest? 0 to 2 year periods.
Those who require access to cash in the short-term or
who are seeking a secure, very low risk investment. Over Risk objective
long-term periods, Cash is expected to be the lowest A very low level of risk expected to generate less than
returning asset class. 0.5 negative annual returns over any 20 year period.
Investment strategy Long-term strategic investment mix
100% invested in Cash and short-term money 100% defensive assets.
market securities.
Investment mix and asset ranges
Cash 100%
*The Bloomberg AusBond Bank Bill Index is a commonly used benchmark for cash-like investments. It measures the return earned on a diversified portfolio of
different types of short-term cash investments. Cash investments are generally taxed at 15% in the superannuation accumulation phase.
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
16Direct Access option
Objective Risk objective
To provide members with the choice and flexibility to The risk level will depend on the mix of investments
manage part of their super. selected by individual members. The risk levels that
generally apply to the investments in the Direct Access
Who should invest? option are:
Those who are comfortable taking an active role managing
their super investment.
• term deposits: very low risk
• listed securities such as ETFs, and Australian Shares
Investment strategy that form part of the S&P/ASX300 Index: very high risk.
Allows members to invest a proportion of their super in
their choice of: The likelihood of a negative return will vary depending
on each member’s allocation to shares, ETFs and term
• Australian shares that form part of the deposits and the performance of the investments selected
S&P/ASX300 Index by individual members.
• other listed securities such as ETFs, approved by the
Long-term strategic investment mix
Trustee
The mix of growth and defensive assets will depend on
• a range of approved term deposits. the mix of investments selected by individual members.
The growth/defensive characteristics that generally apply
Return objective to the investments in the Direct Access option are:
The return objective will depend on the mix of investments • term deposits: defensive assets
selected by individual members.
• approved ETFs: growth or defensive assets
Investment timeframe • listed securities and Australian shares that form part
The minimum suggested timeframe will depend of the S&P/ASX300 Index: growth assets.
on the investments selected by individual members.
The minimum suggested timeframes that generally apply
to the investments in the Direct Access option are:
• term deposits: 2 years or less
• approved ETFs: 8-10 years
• listed securities and Australian shares that form part of
the S&P/ASX300 Index: 8-10 years.
17MySuper Growth
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+3.5%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
7 to 10 year periods.
Who should invest?
This option suits those who are seeking high growth and Risk objective
are comfortable with high levels of volatility in returns, A high level of risk expected to generate 4 to less than
particularly over the short-term. Compared to the other 6 negative annual returns over any 20 year period.
options available in TelstraSuper, this investment stage
involves a higher level of risk to target greater returns over
Long-term strategic investment mix*
the longer term. As a result, the value of your investment
may rise or fall in the short-term. 87.5% growth assets,
12.5% defensive assets.
Investment strategy
Strong bias towards growth assets, such as Australian and
International Shares, and Listed Property Trusts, with a
smaller allocation towards mixed assets such as Unlisted
Property and Infrastructure and defensive assets such as
Cash.
Investment mix and asset ranges
International Shares 40% (20-60%)
Australian Shares 30% (10-50%)
Unlisted Property 10% (0-25%)
Infrastructure 7% (0-15%)
Private Markets 5% (0-15%)
Alternative Debt 4% (0-20%)
Cash 2% (0-10%)
Listed Property Trusts 2% (0-10%)
Australian Fixed Interest 0% (0-15%)
Credit 0% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
International Fixed Interest 0% (0-15%)
Opportunities 0% (0-10%)
Foreign Currency Exposure (10-50%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
18MySuper Balanced
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+3%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
5 to 10 year periods.
Who should invest?
This investment stage suits those who are seeking growth Risk objective
and are comfortable with volatility of returns, particularly A high level of risk expected to generate 4 to less than
over the short-term. This investment stage is designed to 6 negative annual returns over any 20 year period.
provide lower levels of risk and return than the MySuper
Growth investment stage, but higher long-term returns
Long-term strategic investment mix*
than the MySuper Conservative investment stage
and Cash option. 71.5% growth assets,
28.5% defensive assets.
Investment strategy
MySuper Balanced has a moderate bias towards growth
assets, such as Australian and International Shares,
and Listed Property Trusts, balanced by an allocation
towards defensive assets such as Fixed Interest Securities
and Cash, and mixed assets such as Unlisted Property
and Infrastructure.
Investment mix and asset ranges
International Shares 30% (10-50%)
Australian Shares 24% (0-40%)
Unlisted Property 10% (0-25%)
Australian Fixed Interest 7.5% (0-20%)
Infrastructure 7% (0-15%)
Cash 6% (0-15%)
Private Markets 5% (0-15%)
Alternative Debt 4% (0-20%)
International Fixed Interest 2.5% (0-15%)
Credit 2% (0-10%)
Listed Property Trusts 2% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
Opportunities 0% (0-10%)
Foreign Currency Exposure (5-45%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of financial and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
19MySuper Conservative
Objective Return objective
To build an investment portfolio to achieve the stated Outperform CPI+1.5%p.a.
return objective within the stated risk parameters over the
specified timeframe. Investment timeframe
3 to 10 year periods.
Who should invest?
Those who want to maintain some growth, with a lower Risk objective
risk of capital loss than the MySuper Balanced or A low to medium level of risk expected to generate
MySuper Growth options. 1 to less than 2 negative annual returns over any 20
year period.
Investment strategy
MySuper Conservative has a bias towards defensive Long-term strategic investment mix*
assets, in particular a high weighting towards Cash, to 35% growth assets,
minimise short-term fluctuations (risk) but has some 65% defensive assets.
exposure to growth assets for long-term growth (return).
Investment mix and asset ranges
Australian Fixed Interest 21% (5-35%)
Cash 21% (10-30%)
International Fixed Interest 14% (0-25%)
International Shares 14% (0-30%)
Australian Shares 10% (0-30%)
Unlisted Property 10% (0-25%)
Infrastructure 5% (0-15%)
Alternative Debt 3% (0-20%)
Listed Property Trusts 2% (0-10%)
Credit 0% (0-10%)
Hedge Funds 0% (0-5%)
Income Securities 0% (0-10%)
Opportunities 0% (0-10%)
Private Markets 0% (0-10%)
Foreign Currency Exposure (0-30%)
The aim of this information is to provide members with investment objective and strategy details (including investment mix) that we consider members
reasonably need to understand TelstraSuper's investments and reflect the manner in which objectives and strategies have been formulated by the Trustee
pursuant to superannuation law and discretionary powers under TelstraSuper's Trust Deed.
*The long-term investment mix is used as a strategic guide for investing. The split of defensive and growth assets can vary from time to time as investment in
each asset class may vary within the allowable ranges.
2003
Diversify your investment to help minimise risk
Diversification simply means spreading risk. TelstraSuper
does this by offering diversified investment options that
Choosing an invest in a mix of growth and defensive assets, such as
Shares, Fixed Interest, Unlisted Property, Listed Property
investment option Trusts and Cash. In this way, when one asset is not
performing as well as expected, the other assets in your
You can invest in an option, including our MySuper portfolio may help to balance the overall return. You’ve
arrangement, that best suits your age, timeframe, financial heard the saying, ‘don’t put all your eggs in one basket’.
plans, appetite for return and your tolerance for risk. Apply this concept to investing and it can help reduce the
impact of negative returns on your investment.
Pages 7 to 20 of this guide outline our investment options,
their investment timeframes, and their associated levels of We also achieve diversification by selecting a wide range
risk and expected return. of specialist investment managers. This means that
different specialists in each asset class manage your
Our MySuper arrangement is a lifecycle investment money, which also helps spread the risk. Each manager
strategy consisting of three investment stages: is carefully chosen to provide competitive performance as
well as specialist skills in particular markets.
MySuper arrangement You can find a full list of our investment managers on
Member age
investment stages our website.
Under 45 MySuper Growth
45 to under 65 MySuper Balanced
65 and over MySuper Conservative
MySuper members will have their balance invested in the
relevant age-based investment stage shown in the table
above. As the member ages, their super will automatically
be moved to the relevant age-based investment stage,
without incurring a buy-sell spread.
If you don’t choose an investment option(s) when
you first become a TelstraSuper accumulation member,
you’re automatically placed in the relevant MySuper
investment stage*.
We'll advise you in writing whenever new investment
options are introduced, or when changes are made to the
existing options.
Buy-sell spreads
A buy-sell spread is a fee to recover transaction costs
incurred by the trustee of a superannuation entity
in relation to the sale and purchase of assets of the
entity. For further information, refer to the Additional
Information About Your Super guide available at
telstrasuper.com.au/pds
* Except members who transferred to TelstraSuper Corporate Plus as part of the Telstra 2014 Super Offer.
21Choosing a mix of investment options Over time, the value of your account will fluctuate.
If you’re invested in more than one investment option,
Members can individually tailor their investment by these fluctuations will likely cause your percentage of
choosing a mix of investment options, as shown in the holdings to vary from your initial investment profile.
example below. We don’t automatically balance your account to keep
your chosen split, however, if you’d like to automatically
balance your account, you can use our Automatic
Example Investment Re-weight facility.
Sally has $100,000 in her super account and would like The Automatic Investment Re-weight facility gives you
to divide it between a mixture of investment options, the option to re-weight your account on a quarterly,
which she can do by allocating specific percentages to half-yearly or yearly frequency. Your re-weight can include
the options of her choice: any investment options (excluding Direct Access) and
you can also nominate a deviation tolerance percentage
Investment option/MySuper Percentage that determines what percentage your account needs to
fluctuate from its initial allocation before the re-weight
Growth -
occurs. Please note, any applicable buy-sell spreads will be
Balanced 40% incurred for re-weighting your investment profile.
Diversified Income - If you’d like to setup an Automatic Investment Re-weight
profile, you can do so by completing a TelstraSuper
Defensive Growth - Investment Choice form available at telstrasuper.com.au
or call us.
Conservative -
International Shares 50% Speak to TelstraSuper Financial Planning
Australian Shares - You should consider seeking financial advice from
TelstraSuper Financial Planning. To discuss your advice
Property - needs, please call TelstraSuper Financial Planning on
1300 033 166 (option 2).
Fixed Interest -
Changing your investment option(s)
Cash 10%
If you'd like to change your investment option(s), you
Direct Access* can do so securely in SuperOnline. Alternatively, you
- Cash Transaction Account can complete an Investment Choice form, available at
- Term deposits - telstrasuper.com.au/forms or by calling us.
- Listed securities (including
shares and Exchange You can change your investment option(s) at any time.
Traded Funds) Investment switching will incur any applicable buy-sell
costs. For more information on buy-sell spreads see the
MySuper Additional Information About Your Super guide available
at telstrasuper.com.au/pds
Total 100%
Changing your investment option(s) will also affect how
The mix will change as investment earnings accrue and investment returns are allocated to your account.
income payments are made. Sally should therefore be
careful to review her choice regularly to ensure that her
mixed option selection remains appropriate.
When you’ve invested across a mix of investment options,
investment earnings depend on the combination of options
you choose.
We don’t guarantee that a mixture of any two or more
investment options will provide earnings consistent with the
performance of the investment options designed by us.
Investment earnings for each option will be applied to your
account balance via the unit price.
* Investment switches can be made based on percentage or dollar amount. Switches to and from Direct Access must be made through SuperOnline and for
dollar amounts only.
2204
Applying investment returns to your account
Investment returns/earnings are applied to your account
according to your chosen investment option(s). We declare
Risks of super
daily unit prices for the purpose of applying investment
returns to your account. The unit price applied depends
upon your account activity and the ‘Effective Day’ for
transactions. For more information on how your account Like any investment, there are risks associated with
works, see the ‘How your super account works’ section investing your super. The significant risks include:
in our Additional Information About Your Super Guide
available at telstrasuper.com.au/pds Risk Description
Investment option switches will be processed at the sell Inflation may exceed the return
unit price (out of the current investment option(s)) and Inflation
risk on your investment, reducing its real
the buy unit price (into the selected investment option(s)) value.
applicable to the day the switch took place.
Individual
investment The investment option(s) you choose may
For online investment option switches, we must receive
risk fall in value.
the switch instruction before 5.30pm on a Melbourne
business day in order to be transacted at that day’s
Changes in investment markets due
declared unit price. Unit prices for a particular day are Market to economic or political factors may
declared on the following Melbourne business day. For risk occur, possibly causing changes in your
online switches received after 5.30pm the switches will be
investments and returns.
transacted using the next day’s buy and sell unit prices.
Interest Changes to interest rates may impact on
For investment option switch instructions given rate risk investment returns.
other than online (such as by post, email or in person),
those instructions are not always able to be processed We invest in overseas investments, for
in accordance with the above timeframes and as result example as part of the International
Hedging
the unit price that will be applied to those instructions risk Shares option, and if the currency of
will be the one available on the first business day after (currency) those countries rises or falls, or if the
such processing. Australian dollar rises or falls, the value of
your investment may change.
A Melbourne business day is from Monday through Friday
(inclusive) and excludes any day that falls on a national Derivatives are instruments that derive
holiday or Victorian public holiday. their value from an underlying asset, such
as a share or index. We use derivatives
Income returns (net of fees and taxes) for the Diversified to reduce risk, reduce transaction costs
Income option are distributed on a monthly basis* and and as an efficient way to gain exposure
used to purchase Cash investment option units at that to certain asset classes, including
time. Derivative Australian and International Shares and
risk Fixed Interest. Derivatives are not used
The total income earned for the month is applied within for gearing. Risks include the value of the
seven business days of the following month. If a full derivative falling, which may affect your
withdrawal is made before the month end, no income investments. We aim to control derivative
distribution will take place for that month. Instead, the risk by monitoring TelstraSuper's contracts
withdrawal benefit will be inclusive of income accrued and by entering into derivative contracts
at the time of redemption. with reputable parties.
Super and tax laws change often and
Changes
to law these changes may affect
your investment.
The risk an investment manager will not
perform to expectation (which might put
your investments at risk). Our manager
Manager risk is reduced by using a diverse range
risk of specialist investment managers chosen
to provide competitive performance as
well as specialist skills. Performance is
carefully monitored and managed.
* Subject to investment performance.
2305 06
Environmental, Social Stay informed
and Governance (ESG) More information and helpful articles about investing
Considerations your retirement savings are available on our website.
We also publish an email newsletter, which includes news
and updates on investment performance and the options
We believe that incorporating environmental, social available to TelstraSuper members.
and governance (ESG) considerations into investment
decision making is part of good risk management and Subscribe today at telstrasuper.com.au
making better investment decisions. For example, this
includes negatively screening tobacco investments and
certain controversial weapons like cluster munitions and
land mines, and positively screening sustainable energy
projects like wind farms.
We take a range of ESG factors into account when
selecting, retaining or realising investments. This includes
climate risk, gender diversity, labour standards, and
human rights in corporate supply chains and corporate
governance. The ESG considerations we focus on, may
change from time to time.
For further information on ESG considerations, please
view our Sustainable Investment Policy and Responsible
Investment webpage at telstrasuper.com.au
Telstra Super Pty Ltd
PO Box 14309
Melbourne VIC 8001
1300 033 166
222166/FA
www.telstrasuper.com.au
PG002/65/0720 contact@telstrasuper.com.auYou can also read
