Our investment philosophy guides the way we invest your money. It combines key principles to give you consistent, strong returns.
We don’t get distracted by short-term market events. In fact, we’re always looking to your future. We’re here to give you real growth over time, so you can enjoy years of income from your super.
We search for the best investment opportunities in Australia and overseas. And we add extra value by choosing specialised investments that we believe have potential to outperform the market. Not every super fund can do this, but our size means we can secure prime investments, as well as niche opportunities. All of this means we strive to add to your return and reduce risk. We put our historically strong returns* down to our active management approach.
*Past performance is not a reliable indicator of future performance.
The best defence against unpredictable investment markets? Diversification. We spread investments in the Managed Options across a mix of asset classes, so your returns don’t rely on a single asset class performing well all the time. Explore how our investment options give you diversification across and within asset classes.
There will be ups and downs over the life of your super. It’s how we prepare for changes that matters. We employ strategies that aim to minimise the impact of negative returns when the market falls. This is called ‘downside protection’. Protecting against downside risk means we’re better prepared for market downturns, and you can be more confident about recovering losses.
We consider environmental, social and governance (ESG) factors when choosing investments. And we ask our investment managers to do the same. Along with economic and market-related factors, we believe that ESG factors are important as they can have a long-term impact on how your super performs.
CareSuper’s assets are managed according to the investment strategy for each investment option that has specified asset allocation benchmarks or, in the case of the Managed options, an asset allocation range. We develop our investment strategies after considering CareSuper’s overall circumstances and membership demographics, current market conditions and all applicable legislation.
We also consider the following objectives in establishing an investment strategy:
We select and appoint professional investment managers to invest members’ assets in line with the strategies for our investment options.
Within most asset classes, we’ve diversified the management of investments across several investment managers (and varying investment styles) with the aim of moderating the volatility in the overall return of the asset class. We don’t manage any investments internally, except for term deposits and the cash flow required for day-to-day operations. Licensed investment consultants advise and assist us with investment matters including the selection of investment managers whose investment objectives must be consistent with our requirements. Controls applied to the managers are consistent with our objectives and philosophy.
Your savings will be affected by the investment return of your chosen investment option(s). No investment is completely risk-free, but some investments carry more risk than others. Risk can mean either a fall in the value of an investment, particularly over shorter periods, or an investment not meeting its return objective over the long term. Generally, the higher the expected return, the greater the risk. Investing for the future involves different sorts of risks that may be more or less important depending on your circumstances. For more information about the types of risk, read our Investment Guide or Pension Guide.
Investment managers may use futures, options and other derivative instruments to enhance returns or manage risk. However, these instruments may not be used to leverage the fund or to cause overall exposure to any asset class or combination of classes to breach the long-term strategic ranges.
Owning shares in many different companies gives us the right to have a say in how they are managed.
By exercising our voting rights on a range of different resolutions at companies’ annual general meetings, we aim to maximise value for CareSuper members by using our influence to support positive corporate behaviour and drive improved ESG practices.
When voting on Australian Shares, we generally follow the guidelines provided by the Australian Council of Superannuation Investors (ACSI) on all non-investment related resolutions for stocks within the S&P/ASX 200 Index. ACSI provides independent research and advice to super funds on the environmental, social and corporate governance risk of companies in which they invest. When voting on financial-related issues, we seek guidance from our investment managers. If an investment manager holds shares outside the S&P/ASX 200 Index, that manager is expected to vote on resolutions at its own discretion.
At 30 June 2019, the following investment managers held more than 5% of CareSuper’s assets (figures rounded to two decimal places).
| IFM Investors | 8.12% |
| - IFM Enhanced Index Equities | 4.91% |
| - IFM Australian Infrastructure Fund | 1.90% |
| - IFM Specialised Credit Fund | 0.88% |
| - IFM International Private Equity Fund III | 0.23% |
| - IFM Infrastructure Debt | 0.14% |
| - IFM Australian Private Equity Fund IV | 0.02% |
| - IFM International Private Equity Fund II | 0.02% |
| - IFM Australian Private Equity Fund III | 0.00% |
| - IFM International Private Equity Fund I | 0.00% |
| Colonial First State Australian Cash | 5.98% |
| MFS Global Equity Trust | 5.11% |
CareSuper uses unit prices to calculate and report members’ super balances and apply investment returns in relation to investments in a Managed or Asset Class option. Prior to April 2019, these were calculated weekly. Since April 2019, unit prices (both buy and sell) for each investment option are calculated each business day (Monday to Friday excluding public holidays) taking into account the closing valuations from the previous business day and are published on our website within two business days.
Every member’s account balance information is calculated by the number of units they own multiplied by the applicable sell price. A buy price is usually the price applied when contributions are made into an investment option, at which time a member’s account will be allocated units at the buy price. A sell price is usually applied when money is withdrawn from an investment option, including withdrawals from accounts for investment switches and payments, account keeping and administration fees, insurance premiums and tax deducted directly from an account.
To find out more about buy–sell spreads and how unit prices are calculated, read our Investment Guide or Pension Guide
CareSuper maintains reserves designed to provide for known and potential commitments and contingencies. We maintain two reserve accounts:
CareSuper maintains a General Reserve that reflects the size of funds under management, the demographics of our member base and the perceived financial market conditions and liquidity risks. The Operational Risk Reserve is maintained to provide for the risks of operating a superannuation fund. The level of Operational Risk Reserve (ORR) maintained reflects the size, complexity and business of CareSuper (0.25% of net assets as at 30 June 2019). Reserves are formally reviewed on a quarterly basis.
These reserves are invested in a strategy appropriate to their time frame and risk profile, which the CareSuper Board reviews annually. The General Reserve is invested in a combination of asset class exposures in line with the superannuation Balanced option as well as interest bearing cash balances to maintain liquidity. The Operational Risk Reserve is invested in an investment exposure consistent with the aggregate asset allocation of CareSuper’s investments.
| 2018/2019 $'000 |
2017/2018 $'000 |
2016/2017 $'000 |
|
| General reserve | 125,868 | 133,187 | 113,625 |
| ORR | 39,699 | 36,041 | 37,567 |
| Total Reserves | 165,567 | 169,228 | 151,192 |
Investment update with Chief Investment Officer, Suzanne Branton
The 2019 financial year was a good one for both super and pension members, with our Balanced option delivering its tenth consecutive year of positive returns and real growth over inflation.
The Balanced option for both super and pension members comfortably outperformed their investment objectives, returning 6.88% for super and 7.50% for pension members.
CareSuper’s other diversified options also delivered positive returns for the financial year. The best performers were those options with higher allocations to growth assets such as shares, direct property, infrastructure and private equity.
The returns for all our investment options across the various time frames are set out in the tables below.
Our investment approach is designed to give you real growth over time. So how have we performed over the long-term?
According to the SuperRatings survey, our Balanced (MySuper) option was the #1 performer among comparable funds, over 20 years to 30 June 2019, with an average return of 8.13% per annum. It also ranked amongst the top 10 performing funds over 5, 7, 10 and 15 years.1
And for our pension members, who mainly have their money invested in our Balanced and Conservative Balanced options, there's more good news. Both of these options were also among the top performers over similar long-term timeframes.2
Our historically strong returns come down to our proven investment philosophy, which is founded on a belief in active management and the genuine long-term horizon of super.
We don’t get distracted by short-term trends in the market but remain focused on what’s going to make the biggest difference to our members’ retirement savings, and that’s the long-term net returns.
1. SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, June 2019.
2. SuperRatings Pension Fund Crediting Rate Survey - June 2019. Various indices.
Here are our actual annual returns for the financial years 2015 to 2019 and compound average annual returns for other timeframes (all after investment fees, indirect costs and tax) as at 30 June 2019. These returns are for the Managed and Asset class investment options.
| Investment choice | 2019 | 2018 | 2017 | 2016 | 2015 | 10 yr | 7 yr | 5 yr | 3 yr |
| Managed options | |||||||||
| Balanced | 6.88% | 10.10% | 11.70% | 4.45% | 10.76% | 9.34% | 10.36% | 8.74% | 9.55% |
| Growth | 7.13% | 11.53% | 13.69% | 3.04% | 11.78% | 10.13% | 11.67% | 9.36% | 10.76% |
| Alternative Growth | 6.45% | 9.59% | 11.54% | 5.47% | 9.68% | 9.39% | 10.28% | 8.52% | 9.18% |
| Sustainable Balanced | 9.37% | 8.53% | 9.36% | 4.35% | 9.79% | 8.98% | 9.92% | 8.26% | 9.09% |
| Conservative Balanced | 5.52% | 7.21% | 8.83% | 3.08% | 8.26% | 7.71% | 7.91% | 6.56% | 7.19% |
| Capital Stable | 4.96% | 5.73% | 6.86% | 3.56% | 6.67% | 6.81% | 6.59% | 5.55% | 5.85% |
| Capital Guaranteed | 1.89% | 1.64% | 1.65% | 2.27% | 2.91% | 2.13% | 1.85% | 2.07% | 1.73% |
| Asset class options | |||||||||
| Overseas shares | 7.22% | 12.04% | 18.56% | -0.39% | 20.47% | 11.82% | 14.90% | 11.32% | 12.52% |
| Australian shares | 7.74% | 15.93% | 14.72% | 0.19% | 7.60% | 9.99% | 11.78% | 9.09% | 12.75% |
| Direct Property | 8.37% | 12.74% | 12.94% | 13.34% | 9.61% | 9.14% | 10.18% | 11.38% | 11.34% |
| Fixed Interest | 5.53% | 2.14% | 1.77% | 4.05% | 4.87% | 5.83% | 4.18% | 3.66% | 3.14% |
| Capital Secure* | 2.00% | 1.92% | 2.08% | 2.44% | 2.78% | 3.05% | 2.49% | 2.24% | 2.00% |
The returns shown above are net of investment fees, indirect costs and tax. They may differ from the actual returns earned in your account. Your actual net returns will appear in your annual statement. Past performance is not a reliable indicator of future performance.
*On 1 August 2019, the name of this option changed to ‘Cash’. Only the name has changed – its objectives and features remain the same.
| Investment choice | 2019 | 2018 | 2017 | 2016 | 2015 | 10 yr | 7 yr | 5 yr | 3 yr |
| Managed options | |||||||||
| Balanced | 6.88% | 10.10% | 12.67% | 4.89% | 11.64% | 10.35% | 11.13% | 9.20% | 9.86% |
| Growth | 7.13% | 11.53% | 14.68% | 3.89% | 12.84% | 11.13% | 12.58% | 9.94% | 11.08% |
| Alternative Growth | 6.45% | 9.59% | 12.81% | 5.88% | 10.72% | 10.26% | 10.94% | 9.06% | 9.59% |
| Sustainable Balanced | 9.37% | 8.53% | 10.22% | 4.58% | 10.83% | 9.98% | 10.73% | 8.69% | 9.38% |
| Conservative Balanced | 5.52% | 7.21% | 9.53% | 3.77% | 8.85% | 8.56% | 8.63% | 6.95% | 7.41% |
| Capital Stable | 4.96% | 5.73% | 7.47% | 4.08% | 7.55% | 7.56% | 7.19% | 5.95% | 6.05% |
| Capital Guaranteed | 1.89% | 1.64% | 2.03% | 2.61% | 3.41% | 2.28% | 2.05% | 2.31% | 1.85% |
| Asset class options | |||||||||
| Overseas shares | 7.22% | 12.04% | 20.94% | -0.45% | 21.85% | 13.04% | 16.16% | 12.00% | 13.27% |
| Australian shares | 7.74% | 15.93% | 16.35% | 1.27% | 8.18% | 11.09% | 12.92% | 9.75% | 13.28% |
| Direct Property | 8.37% | 12.74% | 14.95% | 14.86% | 10.92% | 10.12% | 11.18% | 12.34% | 11.99% |
| Fixed Interest | 5.53% | 2.14% | 2.23% | 4.68% | 5.44% | 6.59% | 4.67% | 3.99% | 3.29% |
| Capital Secure* | 2.00% | 1.92% | 2.43% | 2.66% | 3.22% | 3.50% | 2.80% | 2.45% | 2.12% |
The returns shown above are net of investment fees, indirect costs and tax. They may differ from your actual returns. Your actual net returns will appear in your annual statement. Past performance is not a reliable indicator of future performance.
*On 1 August 2019, the name of this option changed to ‘Cash’. Only the name has changed – its objectives and features remain the same.
| Investment choice | 2019 | 2018 | 2017 | 2016 | 2015 | 10 yr | 7 yr | 5 yr | 3 yr |
| Managed options | |||||||||
| Balanced | 7.50% | 11.09% | 12.67% | 4.89% | 11.64% | 10.51% | 11.36% | 9.52% | 10.41% |
| Growth | 7.98% | 12.58% | 14.68% | 3.89% | 12.84% | 11.33% | 12.86% | 10.32% | 11.72% |
| Alternative Growth | 6.81% | 10.90% | 12.81% | 5.88% | 10.72% | 10.43% | 11.19% | 9.39% | 10.15% |
| Sustainable Balanced | 10.60% | 9.60% | 10.22% | 4.58% | 10.83% | 10.21% | 11.06% | 9.14% | 10.15% |
| Conservative Balanced | 6.10% | 8.31% | 9.53% | 3.77% | 8.85% | 8.73% | 8.87% | 7.29% | 7.98% |
| Capital Stable | 5.54% | 6.42% | 7.47% | 4.08% | 7.55% | 7.69% | 7.37% | 6.21% | 6.48% |
| Capital Guaranteed | 2.28% | 1.97% | 2.03% | 2.61% | 3.41% | 2.36% | 2.15% | 2.46% | 2.10% |
| Asset class options | |||||||||
| Overseas shares | 8.28% | 13.96% | 20.94% | -0.45% | 21.85% | 13.35% | 16.61% | 12.60% | 14.28% |
| Australian shares | 8.80% | 17.86% | 16.35% | 1.27% | 8.18% | 11.38% | 13.34% | 10.33% | 14.27% |
| Direct Property | 8.79% | 13.84% | 14.95% | 14.86% | 10.92% | 10.27% | 11.39% | 12.65% | 12.50% |
| Fixed Interest | 6.41% | 2.50% | 2.23% | 4.68% | 5.44% | 6.71% | 4.85% | 4.24% | 3.70% |
| Capital Secure* | 2.39% | 2.26% | 2.43% | 2.66% | 3.22% | 3.58% | 2.91% | 2.59% | 2.36% |
The returns shown above are net of investment fees, indirect costs and tax. They may differ from your actual returns. Your actual net returns will appear in your annual statement. Past performance is not a reliable indicator of future performance.
*On 1 August 2019, the name of this option changed to ‘Cash’. Only the name has changed – its objectives and features remain the same.
CareSuper offers 12 different investment choices, each with different levels of investment risk and targets for return, plus a Direct Investment option (DIO).
Members can invest in a pre-mixed combination of assets or create their own investment strategy by mixing and matching any of our Managed and Asset class options. Eligible members also have the choice to invest part of their super directly in Australian shares, exchange trade funds, listed investment companies and term deposits through the DIO.
For more information, explore our investment choices.
For information on the actual asset allocations to 30 June 2019 and the preceding financial year, please refer to the tables below. Please note that the government introduced changes to the taxation of investment earnings on Transition to Retirement (TTR) accounts from 1 July 2017, which meant that they were no longer 'tax free'. Having regard to these changes, the asset allocation figures for TTR are the same as for super for 2019 and 2018. Previously TTR and pension were the same.
Below is summary of each of our Managed and Asset Class options as at 30 June 2019.
For more details on the strategic asset allocation (or benchmark) for each investment option, please see the Investment or Pension Guide.
Overview: The Balanced (MySuper) option invests in a diversified mix of assets with an emphasis on Australian and overseas shares, property and alternatives. It’s designed to achieve relatively high returns in the medium to long term but is subject to short-term fluctuations in returns. Your money will be invested in this option if you don’t make an investment choice.
Return objective: To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 3% per year (over rolling 10-year periods). To ensure as far as possible that the investment return members receive each year is competitive with comparable options in other super funds.
Risk level: Medium. The chance of a negative annual return is 2.9 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 22 | 25 | 22 | 25 | 10-40 |
| Overseas Shares | 26 | 19 | 26 | 18 | 10-40 |
| Property | 12 | 13 | 13 | 13 | 0-25 |
| Alternatives | 24 | 26 | 25 | 29 | 0-55 |
| Fixed Interest | 6 | 5 | 5 | 6 | 5-35 |
| Cash | 11 | 11 | 9 | 9 | 0-30 |
Overview: The Growth option mainly invests in growth assets with an emphasis on Australian and overseas shares. It’s designed to achieve long-term capital growth. Returns for this option may display a significant level of volatility with a relatively high risk of capital loss over the short or medium term.
Return objective: To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 4% per year (over rolling 10-year periods). To ensure as far as possible that the investment return members receive each year is competitive with comparable options in other super funds.
Risk level: Medium to high. The chance of a negative annual return is 3.5 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 28 | 33 | 28 | 33 | 15-50 |
| Overseas Shares | 36 | 26 | 35 | 25 | 15-50 |
| Property | 12 | 13 | 12 | 14 | 0-25 |
| Alternatives | 19 | 21 | 22 | 24 | 0-70 |
| Cash | 6 | 7 | 3 | 4 | 0-20 |
Overview: The Alternative Growth option invests in a diversified mix of assets with an emphasis on alternatives as well as Australian and overseas shares. It’s designed to achieve long-term capital growth.
Return objective: To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 3.5% per year (over rolling 10-year periods). To produce a less volatile return profile than the Growth option by investing a significant portion of the portfolio in alternative investments.
Risk level: Medium. The chance of a negative annual return is 2.5 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 20 | 24 | 20 | 24 | 10-40 |
| Overseas Shares | 24 | 17 | 24 | 17 | 10-40 |
| Property | 12 | 13 | 12 | 13 | 0-25 |
| Alternatives | 37 | 39 | 41 | 43 | 10-85 |
| Cash | 7 | 7 | 3 | 3 | 0-20 |
Overview: The Sustainable Balanced option seeks to select investment managers for the Australian and overseas shares asset classes based on a higher degree of focus on environmental, social and governance (ESG) standards, as well as investing in a wide range of other asset classes.
Return objective: To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 3% per year (over rolling 10-year periods). Within the Australian and overseas shares asset classes, to favour industries and companies that are expected to achieve sound investment returns, maintain good social and/or environmental records and have a sustainable future.
Risk level: Medium. The chance of a negative annual return is 2.9 in every 20 years for super and transition to retirement accounts and 2.8 in every 20 years for full pension accounts.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 22 | 25 | 21 | 25 | 10-40 |
| Overseas Shares | 26 | 19 | 26 | 18 | 10-40 |
| Property | 12 | 13 | 12 | 13 | 0-25 |
| Alternatives | 24 | 26 | 27 | 29 | 0-55 |
| Fixed Interest | 5 | 5 | 6 | 6 | 5-35 |
| Cash | 11 | 12 | 8 | 9 | 0-30 |
Overview: The Conservative Balanced option is designed to achieve a balance of risk and return by investing in a blend of assets, with an emphasis on fixed interest, cash and shares (Australian and overseas).
Return objective: To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 2.5% per year (over rolling 10-year periods). To ensure as far as possible that the investment return members receive each year is competitive with comparable options in other super funds.
Risk level: Medium. The chance of a negative annual return is 2.1 in every 20 years for super and transition to retirement accounts and 2.0 in every 20 years for full pension accounts.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 17 | 20 | 17 | 20 | 5-30 |
| Overseas Shares | 20 | 14 | 20 | 14 | 5-30 |
| Property | 7 | 8 | 7 | 8 | 0-15 |
| Alternatives | 21 | 23 | 24 | 26 | 0-45 |
| Fixed Interest | 9 | 9 | 9 | 9 | 0-50 |
| Cash | 26 | 26 | 23 | 23 | 10-60 |
Overview: The Capital Stable option invests in a diversified mix of assets, with an emphasis on fixed interest and cash. It’s designed to provide stability of capital over the medium term combined with the prospect for limited capital growth.
Return objective: To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 2% per year (over rolling 10-year periods). To ensure as far as possible that the investment return members receive each year is competitive with comparable options in other super funds.
Risk level: Low to medium. The chance of a negative annual return is 1.1 in every 20 years for super and transition to retirement accounts and 1.0 in every 20 years for full pension accounts.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 11 | 13 | 11 | 13 | 0-25 |
| Overseas Shares | 13 | 9 | 13 | 9 | 0-25 |
| Property | 6 | 7 | 6 | 7 | 0-15 |
| Alternatives | 19 | 20 | 22 | 23 | 0-35 |
| Fixed Interest | 15 | 15 | 15 | 15 | 0-50 |
| Cash | 36 | 36 | 33 | 33 | 10-70 |
Overview: The Capital Guaranteed option invests in the AMP Capital Guaranteed Savings Account managed by AMP Life Limited (AMP). The asset allocation for this option is determined by AMP and is mainly made up of cash with some fixed interest investments. The capital guarantee for this product is provided by AMP. CareSuper itself does not guarantee the security of capital. From time to time, this option may also invest in the term deposits of Authorised Deposit Taking Institutions and hold a modest amount of cash for liquidity purposes. These securities are not covered by AMP’s guarantee. The underlying financial product that this option invests in is subject to change by the Trustee at its discretion at any time, without prior notice to you.
Return objective: To achieve returns after tax and fees at least in line with the inflation rate (as measured by the CPI) over rolling 10-year periods. To provide a full guarantee on capital and credited accrued interest. To provide ‘smooth’ returns which iron out market fluctuations and are never negative.
Risk level: Very low. The chance of a negative annual return is nil in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Fixed Interest | 22 | 22 | 22 | 22 | 0-50 |
| Cash | 78 | 78 | 78 | 78 | 50-100 |
Overview: The Overseas Shares option invests in shares listed on the stock exchanges around the world, including both developed and emerging markets. To provide diversification a number of different investment managers with different approaches are appointed.
Return objective: To outperform the return of the overseas share market (as measured by the MSCI All Country World ex-Australia Index in $AUD).# To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 4% per year (over rolling 10-year periods).
Risk level: High. The chance of a negative annual return is 4.4 in every 20 years.
#The benchmark used is a composite of the hedged and unhedged MSCI All Country World ex-Australia indices to reflect use of currency hedging in managing the option.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | Overseas Shares | 100 | 100 | 100 | 100 | n/a |
Overview: The Australian Shares option invests mainly in shares of Australian companies listed on the Australian Securities Exchange (ASX). To provide diversification, a number of different investment managers with varying approaches are appointed.
Return objective: To outperform the return of the Australian share market (as measured by the S&P/ASX 300 Accumulation Index). To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 4% per year (over rolling 10-year periods).
Risk level: High. The chance of a negative annual return is 5.4 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | Australian Shares | 100 | 100 | 100 | 100 | n/a |
Overview: The Direct Property option holds units in portfolios focused on core, high-quality properties — mainly CBD office buildings and large shopping centres. Returns may come from both rental income and capital growth.
Return objective: To outperform the return of the Australian direct property market (as measured by the MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index). To achieve returns after tax and fees that exceed the inflation rate (as measured by the CPI) by at least 3% per year (over rolling 10-year periods).
Risk level: Medium to high. The chance of a negative annual return is 3.2 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | Direct Property | 100 | 100 | 100 | 100 | n/a |
Overview: The Fixed Interest option invests in a diversified portfolio of debt securities, mainly fixed-rate bonds issued by Australian and overseas governments and companies, mortgage-backed securities and cash. The investment managers include specialist credit managers and other managers focused on managing sector and interest rate exposures.
Return objective: To outperform returns from a mix of the Australian and overseas bond markets (as measured by a benchmark consisting of the Bloomberg AusBond Composite Bond Index and, the Barclays Capital Global Aggregate Index [hedged] and cash). To achieve returns after tax and fees at least in line with the inflation rate (as measured by the CPI) over rolling 10-year periods.
Risk level: Very low. The chance of a negative annual return is 0.2 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Fixed Interest | 65 | 65 | 65 | 65 | 50-100 |
| Cash | 35 | 35 | 35 | 35 | 0-50 |
Overview: The Capital Secure* option invests in a mix of cash and money-market securities, including at call and term deposits, bank bills, negotiable certificates of deposit, short-dated and floating rate securities issued by Australian and overseas government, banks and companies.
Return objective: To outperform the return of the Australian cash market (as measured by the Bloomberg AusBond Bank Bill Index). To achieve returns after tax and fees that is at least in line with the inflation rate (as measured by the CPI) each year (over rolling 10-year periods).
Risk level: Very low. The chance of a negative annual return is nil in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2019 | 30 June 2018 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | Cash | 100 | 100 | 100 | 100 | n/a |
*On 1 August 2019, the name of this option changed to ‘Cash’. Only the name has changed – its objectives and features remain the same.
We use a combination of in-house experts and external fund managers to manage our members’ super.
Here’s a list of our managers, arranged by asset class, as well as the value of funds held by each and the percentage of CareSuper’s total assets each holding represented at 30 June 2019 and 30 June 2018.
| CareSuper's investment managers during 2018/19 | Investments held by managers | |||
| 2019 | 2018 | |||
| $m | % of Fund |
$m | % of Fund |
|
| Absolute Return | ||||
| BNP Absolute Return Fixed Interest Trust | 273.41 | 1.67% | 272.81 | 1.83% |
| GAM Absolute Return Bond Fund2 | 0.00 | 0.00% | 263.34 | 1.76% |
| Insight Absolute Return Bond Fund | 262.98 | 1.60% | 264.03 | 1.77% |
| Wellington Global Total Return | 243.99 | 1.49% | 234.70 | 1.57% |
| Total | 780.37 | 4.76% | 1034.88 | 6.93% |
| Australian Shares | ||||
| Airlie Australian Equities | 238.66 | 1.45% | 232.01 | 1.55% |
| Lennox Capital Partners Australian Equities1 | 48.34 | 0.29% | 0.00 | 0.00% |
| IFM Enhanced Index Equities | 806.17 | 4.91% | 726.99 | 4.87% |
| Ophir High Conviction Australian Equities | 115.47 | 0.70% | 105.62 | 0.71% |
| Ophir Opportunities Fund | 90.15 | 0.55% | 75.31 | 0.50% |
| Optar Australian Equities | 202.33 | 1.23% | 42.50 | 0.28% |
| Paradice Investment Management Large Caps | 754.29 | 4.60% | 725.71 | 4.86% |
| Renaissance Smaller Companies | 109.68 | 0.67% | 149.40 | 1.00% |
| Schroder Australian Equities | 761.78 | 4.64% | 696.76 | 4.67% |
| Ubique Australian Equities | 579.32 | 3.53% | 547.86 | 3.67% |
| Total | 3706.19 | 22.59% | 3302.16 | 22.11% |
| Capital Guaranteed | ||||
| AMP Guaranteed Savings Account3 | 102.35 | 0.62% | 79.53 | 0.53% |
| Total | 102.35 | 0.62% | 79.53 | 0.53% |
| Cash | ||||
| Colonial First State Australian Cash | 980.53 | 5.98% | 899.15 | 6.02% |
| Term Deposits | 926.71 | 5.65% | 699.56 | 4.68% |
| Total | 1907.24 | 11.63% | 1598.71 | 10.71% |
| Credit | ||||
| Apollo Credit Fund | 180.78 | 1.10% | 164.87 | 1.10% |
| Barings Multi Strategy Credit | 272.10 | 1.66% | 303.60 | 2.03% |
| HayFin Direct Lending Fund | 7.66 | 0.05% | 16.92 | 0.11% |
| HayFin Direct Lending Fund II | 108.64 | 0.66% | 73.38 | 0.49% |
| IFM Infrastructure Debt | 22.38 | 0.14% | 38.71 | 0.26% |
| Shenkman Capital Bank Loans | 282.16 | 1.72% | 280.75 | 1.88% |
| Total | 873.72 | 5.33% | 878.22 | 5.88% |
| Direct Property | ||||
| Charter Hall Prime Office Fund | 429.91 | 2.62% | 365.80 | 2.45% |
| DEXUS Wholesale Property Fund | 726.73 | 4.43% | 688.83 | 4.61% |
| Eureka Development Fund No. 24 | 0.01 | 0.00% | 0.01 | 0.00% |
| ISPT Core Fund | 628.73 | 3.83% | 587.81 | 3.94% |
| ISPT Development & Opportunities Fund No. 2 | 3.70 | 0.02% | 4.80 | 0.03% |
| ISPT International Property Trust5 | 0.02 | 0.00% | 0.02 | 0.00% |
| ISPT Retail Australia Property Trust | 154.94 | 0.94% | 147.43 | 0.99% |
| Lend Lease Australian Prime Property Fund Retail | 37.66 | 0.23% | 38.86 | 0.26% |
| Total | 1981.70 | 12.08% | 1833.56 | 12.28% |
| Fixed Interest | ||||
| Franklin Templeton Global Aggregate Bond Fund2 | 0.00 | 0.00% | 109.40 | 0.73% |
| IFM Specialised Credit Fund | 144.58 | 0.88% | 144.62 | 0.97% |
| Janus Henderson Australian Fixed Interest | 190.02 | 1.16% | 209.67 | 1.40% |
| Brandywine Global Fixed Income Fund | 219.07 | 1.34% | 207.12 | 1.39% |
| ME Bank Super Loans Trust | 1.29 | 0.01% | 1.50 | 0.01% |
| UBS Australian Fixed Interest | 190.55 | 1.16% | 173.87 | 1.16% |
| Western Fixed Income1 | 226.03 | 1.38% | 0.00 | 0.00% |
| Total | 971.74 | 5.92% | 846.18 | 5.67% |
| Infrastructure | ||||
| AMP Capital Infrastructure Equity Fund | 258.25 | 1.57% | 249.23 | 1.67% |
| Antin Co Investment Fund1 | 23.86 | 0.15% | 0.00 | 0.00% |
| Antin Infrastructure Fund | 3.46 | 0.02% | 6.08 | 0.04% |
| Antin Infrastructure Fund III | 96.30 | 0.59% | 26.55 | 0.18% |
| Hastings Utilities Trust Of Australia | 352.11 | 2.15% | 290.58 | 1.95% |
| IFM Australian Infrastructure Fund | 312.44 | 1.90% | 271.54 | 1.82% |
| Macquarie Global Infrastructure Fund II | 48.22 | 0.29% | 39.74 | 0.27% |
| Total | 1094.65 | 6.67% | 883.72 | 5.92% |
| Overseas Shares | ||||
| Antipodes Partners Global Equity | 588.67 | 3.59% | 562.61 | 3.77% |
| Baillie Gifford Long Term Global Growth | 255.79 | 1.56% | 351.42 | 2.35% |
| Intermede Global Equities1 | 348.45 | 2.12% | 0.00 | 0.00% |
| Janus Henderson Global Equity1 | 184.61 | 1.13% | 0.00 | 0.00% |
| MFS Global Equity Trust | 838.58 | 5.11% | 902.14 | 6.04% |
| Neuberger Berman Emerging Markets | 260.83 | 1.59% | 245.28 | 1.64% |
| Orbis Global Equity Fund | 475.08 | 2.90% | 471.94 | 3.16% |
| Robeco Global Equities1 | 553.95 | 3.38% | 0.00 | 0.00% |
| Schroder Global Dynamic Blend2 | 0.00 | 0.00% | 510.72 | 3.42% |
| Stewart Investors Global Emerging Markets2 | 0.00 | 0.00% | 226.40 | 1.52% |
| Wellington Global Contrarian Equity | 468.19 | 2.85% | 416.06 | 2.79% |
| Total | 3974.15 | 24.23% | 3686.56 | 24.69% |
| Private Equity | ||||
| Advent Private Capital V | 0.43 | 0.00% | 1.56 | 0.01% |
| Bain Capital Fund IX | 1.76 | 0.01% | 2.31 | 0.02% |
| Coller International Partners V | 0.91 | 0.01% | 1.23 | 0.01% |
| HarbourVest Co-Investment Opportunities Fund | 31.40 | 0.19% | 10.15 | 0.07% |
| HarbourVest Partners IV | 95.59 | 0.58% | 77.23 | 0.52% |
| Highland Credit Opportunities Fund | 4.92 | 0.03% | 4.70 | 0.03% |
| IFM Australian Private Equity Fund III | 0.82 | 0.00% | 0.71 | 0.00% |
| IFM Australian Private Equity Fund IV | 3.89 | 0.02% | 3.96 | 0.03% |
| IFM International Private Equity Fund I | 0.23 | 0.00% | 0.19 | 0.00% |
| IFM International Private Equity Fund II | 3.54 | 0.02% | 3.94 | 0.03% |
| IFM International Private Equity Fund III | 38.18 | 0.23% | 40.26 | 0.27% |
| Industry Super Holdings Pty Ltd | 35.68 | 0.22% | 29.75 | 0.20% |
| LGT Crown Europe Middle Market II | 21.04 | 0.13% | 26.43 | 0.18% |
| LGT Crown Global Secondaries II | 7.01 | 0.04% | 9.50 | 0.06% |
| Members Equity Bank Pty Ltd | 44.97 | 0.27% | 42.74 | 0.29% |
| Partners Group Direct Investments 2012 | 103.53 | 0.63% | 100.37 | 0.67% |
| Partners Group Direct Investments 2016 | 93.21 | 0.57% | 51.62 | 0.35% |
| Partners Group Secondary 2008 | 5.08 | 0.03% | 6.80 | 0.05% |
| Partners Group Secondary 2011 | 57.86 | 0.35% | 79.52 | 0.53% |
| Partners Group Yarra LP1 | 20.57 | 0.13% | 0.00 | 0.00% |
| Siguler Guff Collins Fund | 41.33 | 0.25% | 19.05 | 0.13% |
| Siguler Guff Distressed Opportunities IV | 50.56 | 0.31% | 52.39 | 0.35% |
| Siguler Guff Small Buyout Opportunities Fund II | 83.52 | 0.51% | 94.03 | 0.63% |
| Siguler Guff Small Buyout Opportunities Fund III | 36.85 | 0.22% | 22.51 | 0.15% |
| Stafford International Timberland VI | 21.25 | 0.13% | 20.01 | 0.13% |
| Wilshire Private Markets | 18.22 | 0.11% | 18.81 | 0.13% |
| Wilshire Private Markets Asia No. 2 | 1.47 | 0.01% | 1.96 | 0.01% |
| Total | 823.81 | 5.02% | 721.74 | 4.83% |
| Sustainable Australian Shares | ||||
| Alphinity Sustainable Shares1 | 60.09 | 0.37% | 0.00 | 0.00% |
| AMP Capital Sustainable Share Fund2 | 0.00 | 0.00% | 31.49 | 0.21% |
| DNR Socially Responsible Australian Equities1 | 35.13 | 0.21% | 0.00 | 0.00% |
| Total | 95.23 | 0.58% | 31.49 | 0.21% |
| Sustainable Overseas Shares | ||||
| Baillie Gifford Positive Change1 | 10.06 | 0.06% | 0.00 | 0.00% |
| Candriam Sustainable Global Equity Fund2 | 0.00 | 0.00% | 36.81 | 0.25% |
| Impax Asset Management1 | 33.94 | 0.21% | 0.00 | 0.00% |
| Robeco Sustainable Global Equities1 | 49.28 | 0.30% | 0.00 | 0.00% |
| Total | 93.27 | 0.57% | 36.81 | 0.25% |
| 16404.41 | 14933.57 | |||
1 Appointed/added during 2018/19.
2 Terminated during 2018/19.
3 Accumulation assets are invested in the AMP Guaranteed Savings Account (Superannuation) and Pension assets are invested in the AMP Guaranteed Savings Account (Pension).
4 Investment being wound down. Small residual balance remaining.
5 Investment wind down complete. All distributions received.
TGM is CareSuper's currency hedging and asset allocation (rebalancing) manager.
Percentages may not sum to totals shown due to rounding to two decimal places.
CareSuper invests around $16 billion worth of super in assets such as shares, airports, office blocks, shopping centres and corporate bonds.
Our top investment holdings as at 30 June 2019 are set out in the tables below.
| Security | % of Asset Class | % of Balanced (MySuper) Option |
| BHP Group Ltd | 6.58% | 1.49% |
| Westpac Banking Corporation | 6.20% | 1.40% |
| Commonwealth Bank of Australia | 5.79% | 1.31% |
| National Australia Bank Ltd | 5.04% | 1.14% |
| CSL Ltd | 3.12% | 0.71% |
| Australian and New Zealand Banking Group Ltd | 3.01% | 0.68% |
| Origin Energy Ltd | 2.56% | 0.58% |
| Rio Tinto Ltd | 2.12% | 0.48% |
| Aristocrat Leisure Ltd | 1.91% | 0.43% |
| Macquarie Group Ltd | 1.80% | 0.41% |
| Telstra Corporation Ltd | 1.63% | 0.37% |
| Brambles Ltd | 1.49% | 0.34% |
| Wesfarmers Ltd | 1.48% | 0.33% |
| Santos Ltd | 1.41% | 0.32% |
| Alumina Ltd | 1.40% | 0.32% |
| Coles Group Ltd | 1.39% | 0.31% |
| Woolworths Group Ltd | 1.39% | 0.31% |
| Aurizon Holdings Ltd | 1.38% | 0.31% |
| Woodside Petroleum Ltd | 1.30% | 0.29% |
| Suncorp Group Ltd | 1.29% | 0.29% |
| Total of asset class | 52.29% | 11.83% |
| Security | % of Asset Class | % of Balanced (MySuper) Option |
| Facebook Inc | 1.98% | 0.50% |
| Netease Inc | 1.22% | 0.31% |
| Samsung Electronics Company Ltd | 1.18% | 0.30% |
| Alphabet Inc | 1.14% | 0.29% |
| Alibaba Group | 1.10% | 0.28% |
| Nestle SA | 1.02% | 0.26% |
| Amazon.com Inc | 1.01% | 0.26% |
| Linde Plc | 1.01% | 0.26% |
| Comcast Corp | 0.95% | 0.24% |
| Medtronic Plc | 0.94% | 0.24% |
| Naspers Ltd | 0.85% | 0.22% |
| Tencent Holdings Ltd | 0.81% | 0.21% |
| Microsoft Corp | 0.79% | 0.20% |
| Accenture Plc | 0.78% | 0.20% |
| Roche Holding AG | 0.76% | 0.19% |
| Schneider Electric SE | 0.76% | 0.19% |
| LVMH Moet Hennessy Vuitton SE | 0.76% | 0.19% |
| Heineken NV | 0.75% | 0.19% |
| Thermo Fisher Scientific Inc | 0.73% | 0.19% |
| Visa Inc | 0.73% | 0.18% |
| Total of asset class | 19.27% | 4.89% |
| Location | % of Asset Class |
| NSW | 45.32% |
| VIC | 22.93% |
| WA | 6.98% |
| QLD | 20.18% |
| SA | 2.10% |
| ACT | 2.48% |
| International | 0.00% |
| Total | 100.00% |
| Sector | % of Asset Class |
| Retail | 34.97% |
| Office | 58.41% |
| Industrial | 5.99% |
| Other | 0.63% |
| Total | 100.00% |
| Location | % of Assets |
| International | 20.40% |
| NSW | 26.20% |
| VIC | 22.70% |
| QLD | 7.20% |
| WA | 11.50% |
| TAS | 0.00% |
| NT | 1.30% |
| SA | 1.60% |
| ACT | 2.30% |
| Cash | 6.80% |
| Total | 100.00% |
| Sector | % of Assets |
| Airport | 38.70% |
| Seaport | 7.80% |
| Tollroads | 2.20% |
| Rail | 1.60% |
| Other Economic | 3.40% |
| Regulated Utilities | 20.50% |
| Social Infrastructure | 11.50% |
| Other | 7.40% |
| Cash | 6.80% |
| Total | 100.00% |
| Government Bonds / Cash | Non-Government | ||||
| Australia | Overseas | Total | Australia | Overseas | Total |
| 23.05% | 26.65% | 49.70% | 30.53% | 19.77% | 50.30% |
| Credit rating | ||||
| AAA | AA | A | BBB | Below BBB |
| 38.78% | 15.47% | 20.58% | 13.62% | 11.38% |
International fixed interest investments are fully hedged. Percentages may not sum to totals shown due to rounding. The figures are subject to change or revision at any time and CareSuper accepts no responsibility for omission or errors.