Capabilities
Funds SA offers a range of investment options, from cash to growth-oriented strategies and tailored strategies, to specifically meet our client’s investment objectives.
Our investment and operational approach enables us to cater for different tax environments, with investment options available for tax-exempt investors, tax-paying investors and those investors who are able to take advantage of franking credit refunds.
There are currently 18 investment options, including tailored options for specific clients, distinguished by differing risk profiles, return targets, investment time horizons and tax status.
These investment options invest into common asset class pools according to the determined strategic asset allocation for each option.
Funds SA investment option objectives
|
Funds SA investment option |
Investment horizon |
Target return |
Risk of a negative return |
Growth Asset Ranges* |
|
Cash |
0+ years |
RBA Cash Rate |
Less than 0.5 years in 20 |
0% |
|
Capital Defensive |
2+ years |
CPI + 1.5% |
between 0.5 and 1 year in 20 |
10% - 40% |
|
Conservative |
4+ years |
CPI + 2% |
Between 2 and 3 years in 20 |
25% - 55% |
|
Moderate |
6+ years |
CPI + 3% |
Between 3 and 4 years in 20 |
40% - 70% |
|
Balanced |
10+ years |
CPI + 3.5% |
Between 4 and 6 years in 20 |
60% - 90% |
|
Growth |
10+ years |
CPI + 4% |
Between 4 and 6 years in 20 |
70% - 100% |
|
High Growth |
10+ years |
CPI + 4.5% |
Between 4 and 6 years in 20 |
70% - 100% |
|
Defined Benefit |
10+ years |
CPI + 4.5% |
Between 4 and 6 years in 20 |
70% - 100% |
* ‘Growth’ assets include equities, certain types of property and growth alternatives. The remainder of the funds are invested in ‘Defensive’ assets, including fixed income, inflation linked bonds and cash.
Please note: The investment objectives state the aims of each investment option and are designed to help investors with their investment decisions. The objectives have been developed having regard for the long-term performance and characteristics of financial markets. There is a reasonable probability that the target returns for each investment option will be acheived over its stated time horizon based on the investment strategies employed. However, there is no guarantee the target returns will be met because financial markets are volatile and past performance is note a reliable indicator of future performance. Indeed, for investment options with exposure to growth assets, there is a material likelihood that returns may be negative in any particular year.
Our asset classes are the building blocks for any investment option or strategy we create.
|
Asset Class |
Investments |
|
Cash
|
Exposure to Australian short-term interest rate sensitive debt instruments, such as bank bills, that provide a high level of liquidity with minimal risk of capital loss.
|
|
Fixed Interest
|
Short-Term Fixed Interest Exposure to Australian nominal debt instruments providing principal repayment at maturity, and coupon payments at regular intervals until maturity, with an average duration of around 2-3 years.
Long-Term Fixed Interest Exposure to Australian and global debt instruments providing principal repayment at maturity, and coupon payments at regular intervals until maturity. with an average duration of around 7-8 years. International assets are hedged to the Australian Dollar.
|
|
Inflation-Linked Securities
|
Exposure to debt securities providing a fixed rate of return in excess of an index related to the general level of prices in the economy, such as the Consumer Price Index or Average Weekly Earnings. International assets are hedged to the Australian Dollar.
|
|
Diversified Strategies Income
|
Investment opportunities with expected returns between that of bonds and equities, not readily classifiable within the other asset classes. Includes investments in investment grade credit, emerging market debt, high-yield securities and absolute return strategies. International assets are hedged to the Australian Dollar.
|
|
Property
|
Exposure to Australian listed and unlisted property.
|
|
Australian Equities
|
Equity exposure to companies listed or about to be listed on the Australian Securities Exchange.
|
|
International Equities
|
Equity exposure to companies listed on international stock exchanges. Includes exposure to emerging markets and small companies. A portion of the developed markets component is hedged to the Australian Dollar.
|
|
Diversified Strategies Growth
|
Investment opportunities with expected returns in excess of the long-term expectation for listed equities, not classifiable within the other asset classes. Includes investments in private equity, opportunistic property, infrastructure and other opportunities. International assets are hedged to the Australian Dollar.
|