What is it?
Our Property investment option is invested in property assets with a bias to unlisted properties. 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 Property option?
The Property 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 while understanding that, under certain market conditions, assets can be made illiquid and investors may not be able to redeem or switch out of the option.
What is the investment objective?
The Property option seeks to achieve an investment return, after taxes and fees, of 4% per annum above inflation over rolling 10-year periods.
How long should I invest in the Property 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 Property option, the suggested minimum investment term is 7+ years.
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 Property option is Medium (negative annual return likelihood in 4 to less than 6 out of every 20 years). That means, in any given year, there is a 20-30% chance for a negative return.
The Property option is primarily invested in Australian properties with a bias to unlisted properties in which investors buy units in trusts holding investment properties that are managed by professional investment managers. At times, the investment may not be liquid and investors may not be able to redeem or switch out of the option.
Fees and other costs
The Property option fees will be:
- Investment management fee of 0.77%pa
- Indirect cost ratio of 0.65%pa.
For each $50,000 invested, members can expect to pay $913 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 complimentary, over-the-phone advice service and obtain a personal recommendation on which of our investment options may be right for you.