What is it?

Our Australian Shares investment option is generally made up of 100% exposure to Australian equity markets. It is designed to provide a large return on investment for members who are willing to also accept potentially higher risk of a negative return.

Who should invest in the Australian Shares option?

The Australian Shares option is designed for members with a long investment horizon (7 years or more) who want to grow their investment and can tolerate short-term market volatility.

What is the investment objective?

The Australian Shares option seek to achieve an investment return, after taxes and fees, that exceeds the benchmark – the S&P/ASX 300 Accumulation Index – over rolling 10-year periods. This forms the basis of which shares we invest in.

How long should I invest in the Australian Shares option?

Because there is the opportunity for the value of investments to go down in the short term, we recommend a minimum investment term to avoid short-term market volatility.

For the Australian Shares option, the suggested minimum investment term is 7+ years.

Risk estimate

A risk estimate is the potential for a negative return in any given year over a 20-year rolling period.

While our goal is to provide members with a positive return, external factors can influence investment performance, including broader economic trends. Risk is defined by how often an investor should expect to see a negative return out of every 20 years.

The risk estimate for the Australian Shares option is Very High (negative annual return likelihood in 6 out of every 20 years). That means, in any given year, there is a 30% chance for a negative return.

Asset allocation

Australian Shares is primarily invested in Australian equity markets and at times may hold a limited cash position.

Key investment option holdings

Top 10 Australian shares

As at June 2018, our top 10 shareholding for Australian shares was:

Company Name

Portfolio Weight (%)

Westpac Banking Corporation

5.2

Australia and New Zealand Banking Group

4.6

BHP Billiton

4.5

Commonwealth Bank of Australia

3.4

National Australia Bank

3.3

Wesfarmers Ltd

3.2

Woodside Petroleum

2.8

QBE Insurance Group

2.3

Tabcorp Holdings Ltd

2.1

Macquarie Group

2.1

Fees and other costs

The Australian Shares option fees will be:

  • Investment management fee of 0.22%pa
  • Indirect cost ratio of 0.15%pa.

For each $50,000 invested, members can expect to pay $388 in investment fees, administration fees and indirect costs for this option each year. These fees are however subject to change

How can I change my investment choices?

You can change your investment mix at any time. Just login to your Members online account and click ‘Your account’ from the options in the left hand menu.

Alternatively, you can download and complete our Investment Switch form.

Need help making an investment choice?

Making an investment choice can be difficult. Download the "Your investment options super fact sheet" for more information on all of our investment options available to you.

Take advantage of our free, over-the-phone advice service and obtain a personal recommendation on which of our investment options may be right for you.

Call us on 1300 658 776 , and we’ll book a 30-minute phone appointment at a time that best suits you (within business hours) or click here to schedule a call.