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Eyre Peninsula. Rumi on Louth. South Australian Tourism Commission.

Our Capabilities

Investment Options

Funds SA offers a range of investment options, from cash to growth-oriented strategies and tailored strategies, to specifically meet our clients’ 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 19 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 strategic asset allocation for each option.

Investment Objectives

Funds SA investment optionInvestment horizonTarget returnRisk of a negative returnGrowth asset ranges*
Cash0+ yearsRBA Cash rateLess than 0.5 years in 200%
Capital Defensive2+ yearsCPI+ 0.5%Between 0.5 and 1 year in 2010% - 40%
Conservative4+ yearsCPI + 1.5%Between 1 and 2 years in 2025% - 55%
Moderate6+ yearsCPI + 2.5%Between 2 and 3 years in 2040% - 70%
Socially Responsible10+ yearsCPI + 3.0%Between 3 and 4 years in 2057% - 87%
Balanced10+ yearsCPI + 3.5%Between 3 and 4 years in 2060% - 90%
High Growth10+ yearsCPI + 4.0%Between 4 and 6 years in 2070% - 100%
Defined Benefit10+ yearsCPI + 4.5%Between 3 and 4 years in 2070% - 100%
Indexed Balanced10+ yearsCPI + 2.5%Between 4 and 6 years in 2060% - 90%
Indexed High Growth10+ yearsCPI + 3.0%Between 4 and 6 years in 2070% - 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 achieved 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 not 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.

The Standard Risk Measure is based on industry guidance that allow clients and members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance, it does not detail what the size of a negative return could be or the potential for a positive return to be less than a client or member may require to meet their objectives. Further, it also does not take into account the impact of fees or tax on the likelihood of a negative return. Clients and members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.

Asset classes

Asset classInvestments
Private CreditPrivate Credit Investments in portfolios of loans that are provided by non-bank lenders to global, mid-sized and large companies.
Credit Sub-Investment Grade Credit Investments in debt securities that are issued by companies, asset backed and mortgage-backed structures, and entities other than developed market governments. These instruments are primarily subject to movement in credit spreads, which may result in both positive and negative valuation changes.
Australian EquitiesEquity exposure to companies listed or about to be listed on the Australian Securities Exchange. Active and passive asset classes are used.
International EquitiesEquity exposure to companies listed on international stock exchanges. Includes exposure to emerging markets and small companies. Active and passive asset classes are used.
Private MarketsInvestment opportunities with expected returns in excess of long-term expectation for listed equities, not classifiable within the other asset classes.
PropertyExposure to Australian listed and unlisted property across the office, retail, and industrial sectors. Includes a range of assets from the premium end of the property market providing long-term cashflows from quality tenants held for the long-term and through investment cycles. May also include an exposure to some sectors with a higher risk and return expectation such as development and refurbishment opportunities with a shorter investment horizon.
InfrastructureInvestment opportunities in assets or companies which display one or more of the following characteristics: provide an essential service that is important to the functioning of society at large or a specific community; have stable or predictable cash flow generation; have a long useful economic life or operate under long-term concessions; display monopoly-like characteristics or have high barriers to entry into their market; and provide an element of inflation protection.
AlternativesAbsolute return strategies being liquid alternative investments that can take both long and short positions across a wide range of financial market instruments to generate returns, and investment strategies that are uncorrelated to traditional asset classes such as bonds and equities and provide attractive returns and portfolio diversification.
Fixed InterestExposure to debt instruments providing principal repayment at maturity, and coupon payments at regular intervals until maturity. These instruments are primarily subject to movement in bond yields, which may result in both positive and negative valuation changes. Includes investments in: Global Investment Grade Credit Invests in debt securities issued by global banks and high-quality corporates. 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. These instruments are subject to movement in real yields, which may result in both positive and negative valuation changes. Government Bonds Investments in domestic and global government issued debt securities. Australian Investment Grade Credit Invests in debt securities issued by Australian banks and high-quality corporates.
CashExposure 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.
Foreign currencyExposure to foreign currency is a component of owning international assets. The amount of foreign currency in the investment option is managed to a foreign currency target.