Invest­ments

Our investment philosophy

When creating the investment options for Professional Super, we sat down with the investment experts at Activus Investment Advisors and asked;
“what’s the best evidence-based investment strategy for young people?”
The solution he came up with was three investment options which were created using index investing.
Index investing involves using technology to buy a little bit of many companies, in proportion to their share of the market or index. The alternative is active investing, which involves hiring a team of managers to pick which specific companies on the stock market (or other investments) will meet a set criteria e.g. perform better than others.
A number of long-term studies have shown that over time, index investing outperforms actively managed investments. A research project conducted by S&P Dow Jones Indices in 2016, found that around 90% of active managers didn’t beat the index (Bloomberg). And, because you don’t need a team of stock pickers, it’s also lower cost.
At Professional Super, if your balance is above $1,500 it’s invested in a range of index funds managed by Macquarie.

Our investment options

We have three investment options that are available for all members with balances over $5,000.

High Growth

This option is designed for people who are prepared to accept a high level of risk for the potential to achieve greater returns over the long term. The investment objective is CPI + 4.5% p.a. over a 10 year period.
High Growth Strategic Asset Allocation
Australian shares (31%)
International shares (56%)
Australian property (4%)
International property (5%)
Global infrastructure (4%)
Cash (0%)
Fixed income (0%)

Growth

This option is our default investment option for all members who don’t make an investment choice. It’s designed for members who are investing over the longer term and are prepared to accept a higher level of risk for the potential to achieve greater returns. The investment objective is CPI + 4% over 10 years.
Growth Strategic Asset Allocation
Australian shares (27%)
International shares (50%)
Australian property (4%)
International property (5%)
Global infrastructure (4%)
Cash (10%)
Fixed income (0%)

Balanced

This option has been designed for members who are seeking growth, but wish to lower the risk of rapid changes in value over the short term. The investment objective is CPI + 3.5%.
Balanced Strategic Asset Allocation
Australian shares (19%)
International shares (37%)
Australian property (4%)
International property (5%)
Global infrastructure (5%)
Cash (30%)
Fixed income (0%)
For more information see Section 5 Fees and Costs of our Reference Guide.