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.
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.
*Past performance is not a reliable indicator of future performance.
Investment update with Chief Investment Officer, Suzanne Branton
The 2019/20 financial year will long be remembered for the global impact of the COVID-19 pandemic and a particularly challenging time for investment markets. It was the year that global share markets went into rapid decline through February and March, in reaction to the economic shutdowns required to contain the spread of COVID-19, before recovering most of the losses by the end of the financial year. Against this backdrop, our Balanced (MySuper) investment option returned 0.22% for the year to 30 June 2020, which was well above the median of -0.82%, according to independent ratings agency, SuperRatings. Amid so much uncertainty, we’re proud to have delivered a positive investment return for members. Pleasingly, we were also able to reduce our investment fees across all investment options. The new fees were disclosed to members in the October 2020 PDS.
Despite the small positive investment return this year, the long-term returns for our Balanced (MySuper) option remain strong. It has delivered 8.43% per year, on average, over the past 10 years. This is a wide margin above the industry median of 7.4% per year.*
CareSuper’s Balanced option (for both super and pension members) was a top performer over the last 5, 7, 10 and 15 years.** Also, our Balanced (MySuper) option is also ranked the number one fund over 20 years, returning an average 7.48% per year.*
The returns for all our investment options across the various timeframes are set out in the Returns at a glance tables.
The key lesson from the past financial year is the importance of maintaining a well-diversified portfolio and sticking to your investment strategy.
The extraordinary events of the past year highlight the value and importance of our more defensive investment approach and certainly showed the power of diversification. Our active investment strategy ensures that we diligently select investments – avoiding those that are expensive and assessing investments that might be facing greater risks.
The diversification in our Balanced option ensures that members can remain invested through different market cycles and benefit from any recovery of share markets and the broader economy.
As the impact of COVID-19 continues to play out, it’s important to remember that superannuation is a long-term investment. It’s better measured over decades rather than months or years. Having successfully navigated an extremely turbulent financial year with further volatility still expected, we’ll continue to monitor financial market movements and seek out investment opportunities that we believe will outperform the market over the long term. See our market updates for the annual investment update video.
* SuperRatings Fund Crediting Rate survey SR50 Balanced (60-76) Index – June 2020.
** SuperRatings Fund Crediting Rate survey SR50 Balanced (60-76) Index – June 2020 and SuperRatings Pension Fund Crediting Rate Survey - SRP50 Balanced (60-76) Index - June 2020.
Here are our compound average returns (after investment fees, indirect costs and tax) as at 30 June 2020.
| Investment choice | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 10 yr | 7 yr | 5 yr | 3 yr |
| Managed options | ||||||||||
| Balanced | 0.22% | 6.88% | 10.10% | 11.70% | 4.45% | 10.76% | 8.43% | 8.05% | 6.59% | 5.65% |
| Growth | -0.43% | 7.13% | 11.53% | 13.69% | 3.04% | 11.78% | 9.01% | 8.72% | 6.86% | 5.96% |
| Alternative Growth | -0.19% | 6.45% | 9.59% | 11.54% | 5.47% | 9.68% | 8.37% | 7.81% | 6.49% | 5.20% |
| Sustainable Balanced | 2.05% | 9.37% | 8.53% | 9.36% | 4.35% | 9.79% | 8.24% | 7.91% | 6.69% | 6.60% |
| Conservative Balanced | 0.15% | 5.52% | 7.21% | 8.83% | 3.08% | 8.26% | 6.77% | 6.07% | 4.91% | 4.25% |
| Capital Stable | 0.51% | 4.96% | 5.73% | 6.86% | 3.56% | 6.67% | 5.93% | 5.16% | 4.30% | 3.71% |
| Capital Guaranteed | 1.58% | 1.89% | 1.64% | 1.65% | 2.27% | 2.91% | 2.01% | 1.94% | 1.81% | 1.70% |
| Asset class options | ||||||||||
| Overseas Shares | 3.53% | 7.22% | 12.04% | 18.56% | -0.39% | 20.47% | 11.19% | 11.12% | 7.99% | 7.54% |
| Australian Shares | -6.50% | 7.74% | 15.93% | 14.72% | 0.19% | 7.60% | 8.05% | 7.77% | 6.06% | 5.31% |
| Direct Property | 1.69% | 8.37% | 12.74% | 12.94% | 13.34% | 9.61% | 8.86% | 9.54% | 9.72% | 7.50% |
| Fixed Interest | 2.41% | 5.53% | 2.14% | 1.77% | 4.05% | 4.87% | 4.98% | 3.66% | 3.17% | 3.35% |
| Cash | 1.13% | 2.00% | 1.92% | 2.08% | 2.44% | 2.78% | 2.76% | 2.17% | 1.91% | 1.68% |
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.
| Investment choice | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 10 yr | 7 yr | 5 yr | 3 yr |
| Managed options | ||||||||||
| Balanced | 0.22% | 6.88% | 10.10% | 12.67% | 4.89% | 11.64% | 9.16% | 8.54% | 6.86% | 5.65% |
| Growth | -0.43% | 7.13% | 11.53% | 14.68% | 3.89% | 12.84% | 9.86% | 9.33% | 7.22% | 5.96% |
| Alternative Growth | -0.19% | 6.45% | 9.59% | 12.81% | 5.88% | 10.72% | 9.08% | 8.19% | 6.82% | 5.20% |
| Sustainable Balanced | 2.05% | 9.37% | 8.53% | 10.22% | 4.58% | 10.83% | 9.08% | 8.40% | 6.90% | 6.60% |
| Conservative Balanced | 0.15% | 5.52% | 7.21% | 9.53% | 3.77% | 8.85% | 7.46% | 6.51% | 5.19% | 4.25% |
| Capital Stable | 0.51% | 4.96% | 5.73% | 7.47% | 4.08% | 7.55% | 6.54% | 5.58% | 4.52% | 3.71% |
| Capital Guaranteed | 1.58% | 1.89% | 1.64% | 2.03% | 2.61% | 3.41% | 2.16% | 2.14% | 1.95% | 1.70% |
| Asset class options | ||||||||||
| Overseas Shares | 3.53% | 7.22% | 12.04% | 20.94% | -0.45% | 21.85% | 12.27% | 11.83% | 8.41% | 7.54% |
| Australian Shares | -6.50% | 7.74% | 15.93% | 16.35% | 1.27% | 8.18% | 8.97% | 8.56% | 6.59% | 5.31% |
| Direct Property | 1.69% | 8.37% | 12.74% | 14.95% | 14.86% | 10.92% | 9.76% | 10.36% | 10.40% | 7.50% |
| Fixed Interest | 2.41% | 5.53% | 2.14% | 2.23% | 4.68% | 5.44% | 5.56% | 4.03% | 3.39% | 3.35% |
| Cash | 1.13% | 2.00% | 1.92% | 2.43% | 2.66% | 3.22% | 3.14% | 2.37% | 2.03% | 1.68% |
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.
| Investment choice | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 10 yr | 7 yr | 5 yr | 3 yr |
| Managed options | ||||||||||
| Balanced | -0.91% | 7.50% | 11.09% | 12.67% | 4.89% | 11.64% | 9.20% | 8.59% | 6.94% | 5.77% |
| Growth | -1.63% | 7.98% | 12.58% | 14.68% | 3.89% | 12.84% | 9.92% | 9.41% | 7.33% | 6.14% |
| Alternative Growth | -1.09% | 6.81% | 10.90% | 12.81% | 5.88% | 10.72% | 9.15% | 8.29% | 6.95% | 5.42% |
| Sustainable Balanced | 1.06% | 10.60% | 9.60% | 10.22% | 4.58% | 10.83% | 9.20% | 8.57% | 7.14% | 7.00% |
| Conservative Balanced | -0.50% | 6.10% | 8.31% | 9.53% | 3.77% | 8.85% | 7.56% | 6.65% | 5.38% | 4.57% |
| Capital Stable | 0.23% | 5.54% | 6.42% | 7.47% | 4.08% | 7.55% | 6.64% | 5.71% | 4.72% | 4.02% |
| Capital Guaranteed | 1.91% | 2.28% | 1.97% | 2.03% | 2.61% | 3.41% | 2.27% | 2.29% | 2.16% | 2.05% |
| Asset class options | ||||||||||
| Overseas Shares | 3.63% | 8.28% | 13.96% | 20.94% | -0.45% | 21.85% | 12.59% | 12.27% | 9.01% | 8.54% |
| Australian Shares | -7.67% | 8.80% | 17.86% | 16.35% | 1.27% | 8.18% | 9.12% | 8.77% | 6.88% | 5.79% |
| Direct Property | 1.71% | 8.79% | 13.84% | 14.95% | 14.86% | 10.92% | 9.91% | 10.58% | 10.70% | 8.00% |
| Fixed Interest | 2.78% | 6.41% | 2.50% | 2.23% | 4.68% | 5.44% | 5.72% | 4.26% | 3.71% | 3.88% |
| Cash | 1.27% | 2.39% | 2.26% | 2.43% | 2.66% | 3.22% | 3.23% | 2.49% | 2.20% | 1.97% |
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.
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 all 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.
All investments have varying degrees of risk and can change in value. Risk can mean either a fall in the value of an investment, particularly over shorter periods, or an investment not meeting its investment objectives over the long term. Some of the most significant risks for investing are:
Read our Investment Guide or Pension Guide for more information.
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.
Our policy is to vote all shares where possible and in a manner that is consistent with our investment philosophy. We aim to ensure that all voting decisions incorporate good ESG practices and support our engagement activities. In doing so, we take into account the views of independent proxy voting advisers and our investment managers. The right to instruct the final voting direction resides with CareSuper.
At 30 June 2020 the following investment managers held more than 5% of CareSuper’s assets.
| IFM Investors | 7.54% |
| - IFM Enhanced Index Equities | 4.63% |
| - IFM Australian Infrastructure Fund | 2.02% |
| - IFM Specialised Credit Fund | 0.51% |
| - IFM Recap Australia Strategy | 0.13% |
| - IFM International Private Equity Fund III | 0.12% |
| - IFM Infrastructure Debt | 0.12% |
| - IFM Australian Private Equity Fund IV | 0.02% |
| - IFM International Private Equity Fund II | 0.01% |
| - IFM Australian Private Equity Fund III | 0.00% |
| - IFM International Private Equity Fund I | 0.00% |
| First Sentier Wholesale Cash | 7.16% |
| MFS Global Equity Trust | 5.38% |
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. New unit prices for each investment option are calculated each business day (Monday to Friday excluding public holidays) and are published on our website within two business days.
Every member’s account balance information includes the number of units they own.
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, insurance fees and tax deducted directly from an account. The sell price is also used to calculate account balances.
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 ORR is maintained to provide for the risks of operating a superannuation fund. The level of ORR maintained reflects the size, complexity and business of CareSuper (0.25% of net assets as at 30 June 2020). Reserves are reviewed on at least a quarterly basis.
These reserves are invested in a strategy appropriate to their time horizon 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 ORR is invested in an investment exposure consistent with the aggregate asset allocation of CareSuper’s investments.
| 2019/20 $'000 |
2018/19 $'000 |
2017/18 $'000 |
|
| General reserve | 69,607 | 125,868 | 133,187 |
| ORR | 40,654 | 39,699 | 36,041 |
| Total Reserves | 110,261 | 165,567 | 169,228 |
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 shares, exchange traded funds, listed investment companies and term deposits through the DIO.
You can learn more about each of our investment options at explore our investment choices.
For information on the actual asset allocations to 30 June 2020 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 have been the same as they are for super since 2018. Previously TTR and pension were the same.
Here’s a summary of each of our Managed and Asset Class options as at 30 June 2020.
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 go into 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 2.8 in every 20 years.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 21 | 24 | 22 | 25 | 10-40 |
| Overseas Shares | 25 | 18 | 26 | 19 | 10-40 |
| Property | 12 | 13 | 12 | 13 | 0-25 |
| Alternatives | 24 | 26 | 24 | 26 | 0-55 |
| Fixed Interest | 7 | 7 | 6 | 5 | 5-35 |
| Cash | 10 | 7 | 11 | 11 | 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 for super accounts, transition to retirement accounts and full pension accounts.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 27 | 32 | 28 | 33 | 15-50 |
| Overseas Shares | 34 | 24 | 36 | 26 | 15-50 |
| Property | 12 | 13 | 12 | 13 | 0-25 |
| Alternatives | 20 | 23 | 19 | 21 | 0-70 |
| Cash | 7 | 8 | 6 | 7 | 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 for super accounts, transition to retirement accounts and full pension accounts.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 18 | 22 | 20 | 24 | 10-40 |
| Overseas Shares | 24 | 17 | 24 | 17 | 10-40 |
| Property | 12 | 13 | 12 | 13 | 0-25 |
| Alternatives | 37 | 38 | 37 | 39 | 10-85 |
| Cash | 9 | 9 | 7 | 7 | 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 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 21 | 24 | 22 | 25 | 10-40 |
| Overseas Shares | 25 | 18 | 26 | 19 | 10-40 |
| Property | 12 | 13 | 12 | 13 | 0-25 |
| Alternatives | 24 | 27 | 24 | 26 | 0-55 |
| Fixed Interest | 7 | 7 | 5 | 5 | 5-35 |
| Cash | 10 | 11 | 11 | 12 | 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 2.0 in every 20 years for super accounts, transition to retirement accounts and full pension accounts.
| Actual asset allocations (%) for the financial year to: | Range | ||||
| 30 June 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 16 | 19 | 17 | 20 | 5-30 |
| Overseas Shares | 20 | 14 | 20 | 14 | 5-30 |
| Property | 7 | 8 | 7 | 8 | 0-15 |
| Alternatives | 20 | 22 | 21 | 23 | 0-45 |
| Fixed Interest | 11 | 11 | 9 | 9 | 0-50 |
| Cash | 27 | 27 | 26 | 26 | 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 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Australian Shares | 10 | 12 | 11 | 13 | 0-25 |
| Overseas Shares | 13 | 9 | 13 | 9 | 0-25 |
| Property | 6 | 7 | 6 | 7 | 0-15 |
| Alternatives | 18 | 19 | 19 | 20 | 0-35 |
| Fixed Interest | 17 | 17 | 15 | 15 | 0-50 |
| Cash | 37 | 37 | 36 | 36 | 10-70 |
Overview: This option invests in capital guaranteed products issued by life insurance companies. This means that the issuing life insurance company guarantees the capital invested as well as the investment returns and not CareSuper. A capital guarantee does not however guarantee the level of future investment performance, other than that it won’t be negative. The asset allocation for this option is mainly made up of capital guaranteed investments. 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 the guarantee.
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 2020 | 30 June 2019 | (%) | |||
| 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 2020 | 30 June 2019 | (%) | |||
| 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 2020 | 30 June 2019 | (%) | |||
| 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 2020 | 30 June 2019 | (%) | |||
| 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 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Fixed Interest | 66 | 66 | 65 | 65 | 50-100 |
| Cash | 34 | 34 | 35 | 35 | 0-50 |
Overview: The Cash 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 2020 | 30 June 2019 | (%) | |||
| Super & TTR | Pension | Super & TTR | Pension | Super, TTR & Pension | |
| Cash | 100 | 100 | 100 | 100 | n/a |
We use a combination of in-house experts and external fund managers to manage our members’ super.
Here’s a list of our managers, ordered 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 2020 and 30 June 2019.
| CareSuper's investment managers during 2019/20 | Investments held by managers | |||
| 2020 | 2019 | |||
| $m | % of Fund |
$m | % of Fund |
|
| Absolute Return | ||||
| BNP Absolute Return Fixed Interest Trust | 161.36 | 1.03% | 273.41 | 1.67% |
| Coolabah Capital Credit Fund1 | 196.81 | 1.26% | 0.00 | 0.00% |
| Insight Absolute Return Bond Fund4 | 14.43 | 0.09% | 262.98 | 1.60% |
| Wellington Global Total Return | 175.47 | 1.12% | 243.99 | 1.49% |
| Total | 548.07 | 3.50% | 780.37 | 4.76% |
| Australian Shares | ||||
| Airlie Australian Equities | 238.22 | 1.52% | 238.66 | 1.45% |
| IFM Enhanced Index Equities | 725.45 | 4.63% | 806.17 | 4.91% |
| IFM Recap Australia Strategy1 | 20.07 | 0.13% | 0.00 | 0.00% |
| Lennox Capital Partners Australian Equities | 148.27 | 0.95% | 48.34 | 0.29% |
| Ophir High Conviction Australian Equities | 133.11 | 0.85% | 115.47 | 0.70% |
| Ophir Opportunities Fund | 106.07 | 0.68% | 90.15 | 0.55% |
| Optar Australian Equities | 171.27 | 1.09% | 202.33 | 1.23% |
| Paradice Investment Management Large Caps | 668.97 | 4.27% | 754.29 | 4.60% |
| Renaissance Smaller Companies2 | 0.00 | 0.00% | 109.68 | 0.67% |
| Schroder Australian Equities | 682.83 | 4.36% | 761.78 | 4.64% |
| Ubique Australian Equities | 463.54 | 2.96% | 579.32 | 3.53% |
| Total | 3,357.79 | 21.43% | 3,706.19 | 22.59% |
| Capital Guaranteed | ||||
| AMP Guaranteed Savings Account3 | 157.07 | 1.00% | 102.35 | 0.62% |
| Total | 157.07 | 1.00% | 102.35 | 0.62% |
| Cash | ||||
| First Sentier Wholesale Cash | 1,121.59 | 7.16% | 980.53 | 5.98% |
| Term Deposits | 565.06 | 3.61% | 926.71 | 5.65% |
| Total | 1,686.65 | 10.77% | 1,907.24 | 11.63% |
| Credit | ||||
| Apollo Credit Fund | 149.70 | 0.96% | 180.78 | 1.10% |
| Apollo Athene Dedicated Investment Program1 | 19.32 | 0.12% | 0.00 | 0.00% |
| Barings Multi Strategy Credit | 236.30 | 1.51% | 272.10 | 1.66% |
| HayFin Direct Lending Fund | 4.80 | 0.03% | 7.66 | 0.05% |
| HayFin Direct Lending Fund II | 94.83 | 0.61% | 108.64 | 0.66% |
| IFM Infrastructure Debt | 18.03 | 0.12% | 22.38 | 0.14% |
| Marathon Multi Strategy Credit1 | 244.82 | 1.56% | 0.00 | 0.00% |
| Shenkman Capital Bank Loans | 249.45 | 1.59% | 282.16 | 1.72% |
| Total | 1,017.25 | 6.49% | 873.72 | 5.33% |
| Direct Property | ||||
| Charter Hall Prime Office Fund | 448.54 | 2.86% | 429.91 | 2.62% |
| DEXUS Wholesale Property Fund | 690.41 | 4.41% | 726.73 | 4.43% |
| Eureka Development Fund No. 24 | 0.01 | 0.00% | 0.01 | 0.00% |
| ISPT Core Fund | 627.88 | 4.01% | 628.73 | 3.83% |
| ISPT Development & Opportunities Fund No. 2 | 3.44 | 0.02% | 3.70 | 0.02% |
| ISPT International Property Trust5 | 0.00 | 0.00% | 0.02 | 0.00% |
| ISPT Retail Australia Property Trust | 146.23 | 0.93% | 154.94 | 0.94% |
| Lend Lease Australian Prime Property Fund Retail | 20.92 | 0.13% | 37.66 | 0.23% |
| Total | 1,937.43 | 12.37% | 1981.70 | 12.08% |
| Fixed Interest | ||||
| IFM Specialised Credit Fund | 79.24 | 0.51% | 144.58 | 0.88% |
| Janus Henderson Australian Fixed Interest | 200.14 | 1.28% | 190.02 | 1.16% |
| Brandywine Global Fixed Income Fund | 147.68 | 0.94% | 219.07 | 1.34% |
| ME Bank Super Loans Trust | 0.51 | 0.00% | 1.29 | 0.01% |
| UBS Australian Fixed Interest | 238.96 | 1.53% | 190.55 | 1.16% |
| Western Fixed Income | 277.35 | 1.77% | 226.03 | 1.38% |
| Total | 943.88 | 6.03% | 971.74 | 5.92% |
| Infrastructure | ||||
| AMP Capital Infrastructure Equity Fund | 243.55 | 1.55% | 258.25 | 1.57% |
| Antin Co Investment Fund | 32.17 | 0.21% | 23.86 | 0.15% |
| Antin Infrastructure Fund4 | 0.03 | 0.00% | 3.46 | 0.02% |
| Antin Infrastructure Fund III | 120.82 | 0.77% | 96.30 | 0.59% |
| Antin Infrastructure Fund IV1 | 1.39 | 0.01% | 0.00 | 0.00% |
| Morrison Utilities Trust Of Australia | 341.03 | 2.18% | 352.11 | 2.15% |
| IFM Australian Infrastructure Fund | 315.79 | 2.02% | 312.44 | 1.90% |
| Macquarie Global Infrastructure Fund II | 1.84 | 0.01% | 48.22 | 0.29% |
| Total | 1,056.60 | 6.74% | 1094.65 | 6.67% |
| Overseas Shares | ||||
| Antipodes Partners Global Equity | 575.37 | 3.67% | 588.67 | 3.59% |
| Baillie Gifford Long Term Global Growth | 343.75 | 2.19% | 255.79 | 1.56% |
| GQG Emerging Markets1 | 103.81 | 0.66% | 0.00 | 0.00% |
| Janus Henderson Global Equity2 | 0.00 | 0.00% | 184.61 | 1.13% |
| Intermede Global Equities | 399.71 | 2.55% | 348.45 | 2.12% |
| MFS Global Equity Trust | 843.36 | 5.38% | 838.58 | 5.11% |
| Neuberger Berman Emerging Markets | 153.85 | 0.98% | 260.83 | 1.59% |
| Orbis Global Equity Fund | 323.61 | 2.07% | 475.08 | 2.90% |
| Robeco Global Equities | 560.11 | 3.58% | 553.95 | 3.38% |
| Skerryvore Emerging Markets1 | 154.60 | 0.99% | 0.00 | 0.00% |
| Wellington Global Contrarian Equity | 477.61 | 3.05% | 468.19 | 2.85% |
| Total | 3,935.79 | 25.12% | 3974.15 | 24.23% |
| Private Equity | ||||
| Advent Private Capital V | 0.61 | 0.00% | 0.43 | 0.00% |
| Bain Capital Fund IX | 0.77 | 0.00% | 1.76 | 0.01% |
| Coller International Partners V | 0.70 | 0.00% | 0.91 | 0.01% |
| HarbourVest Co-Investment Opportunities Fund | 49.38 | 0.32% | 31.40 | 0.19% |
| HarbourVest Partners IV | 87.87 | 0.56% | 95.59 | 0.58% |
| Highland Credit Opportunities Fund | 5.01 | 0.03% | 4.92 | 0.03% |
| IFM Australian Private Equity Fund III | 0.49 | 0.00% | 0.82 | 0.00% |
| IFM Australian Private Equity Fund IV | 2.50 | 0.02% | 3.89 | 0.02% |
| IFM International Private Equity Fund I | 0.22 | 0.00% | 0.23 | 0.00% |
| IFM International Private Equity Fund II | 1.65 | 0.01% | 3.54 | 0.02% |
| IFM International Private Equity Fund III | 18.15 | 0.12% | 38.18 | 0.23% |
| Industry Super Holdings Pty Ltd | 35.60 | 0.23% | 35.68 | 0.22% |
| LGT Crown Europe Middle Market II | 17.63 | 0.11% | 21.04 | 0.13% |
| LGT Crown Global Secondaries II | 5.19 | 0.03% | 7.01 | 0.04% |
| Members Equity Bank Pty Ltd | 41.39 | 0.26% | 44.97 | 0.27% |
| Partners Group Direct Investments 2012 | 91.35 | 0.58% | 103.53 | 0.63% |
| Partners Group Direct Investments 2016 | 122.51 | 0.78% | 93.21 | 0.57% |
| Partners Group Direct Investments 20191 | 6.27 | 0.04% | 0.00 | 0.00% |
| Partners Group Secondary 2008 | 3.55 | 0.02% | 5.08 | 0.03% |
| Partners Group Secondary 2011 | 40.75 | 0.26% | 57.86 | 0.35% |
| Partners Group Yarra LP | 36.39 | 0.23% | 20.57 | 0.13% |
| Siguler Guff Collins Fund | 66.99 | 0.43% | 41.33 | 0.25% |
| Siguler Guff Distressed Opportunities IV | 39.51 | 0.25% | 50.56 | 0.31% |
| Siguler Guff Small Buyout Opportunities Fund II | 73.97 | 0.47% | 83.52 | 0.51% |
| Siguler Guff Small Buyout Opportunities Fund III | 43.25 | 0.28% | 36.85 | 0.22% |
| Siguler Guff Small Buyout Opportunities Fund IV1 | 6.84 | 0.04% | 0.00 | 0.00% |
| Stafford International Timberland VI | 20.95 | 0.13% | 21.25 | 0.13% |
| Wilshire Private Markets | 11.67 | 0.07% | 18.22 | 0.11% |
| Wilshire Private Markets Asia No. 2 | 1.29 | 0.01% | 1.47 | 0.01% |
| Total | 832.45 | 5.31% | 823.81 | 5.02% |
| Sustainable Australian Shares | ||||
| Alphinity Sustainable Shares | 57.72 | 0.37% | 60.09 | 0.37% |
| DNR Socially Responsible Australian Equities | 33.40 | 0.21% | 35.13 | 0.21% |
| Total | 91.13 | 0.58% | 95.23 | 0.58% |
| Sustainable Overseas Shares | ||||
| Baillie Gifford Positive Change | 15.29 | 0.10% | 10.06 | 0.06% |
| Impax Asset Management | 36.32 | 0.23% | 33.94 | 0.21% |
| Robeco Sustainable Global Equities | 50.00 | 0.32% | 49.28 | 0.30% |
| Total | 101.61 | 0.65% | 93.27 | 0.57% |
| 15,665.73 | 16,404.41 | |||
1 Appointed/added during 2019/20.
2 Terminated during 2019/20.
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.
Figures exclude derivative positions. Percentages may not sum to totals shown due to rounding.
QIC is CareSuper's currency hedging and asset allocation (rebalancing) manager.
Percentages may not sum to totals shown due to rounding.
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 2020 are set out in the tables below.
| Security | % of asset class | % of Balanced (MySuper) option |
| BHP Group Ltd | 5.85% | 1.23% |
| CSL Ltd | 5.27% | 1.11% |
| Commonwealth Bank of Australia | 5.14% | 1.08% |
| Westpac Banking Corporation | 3.53% | 0.74% |
| National Australia Bank Ltd | 3.00% | 0.63% |
| Woolworths Group Ltd | 2.68% | 0.56% |
| Telstra Corporation Ltd | 2.58% | 0.54% |
| Australian and New Zealand Banking Group Ltd | 2.34% | 0.49% |
| Origin Energy Ltd | 2.24% | 0.47% |
| Coles Group Ltd | 2.21% | 0.47% |
| Rio Tinto Ltd | 2.03% | 0.43% |
| Wesfarmers Ltd | 1.70% | 0.36% |
| Amcor Limited | 1.58% | 0.33% |
| Aurizon Holdings Ltd | 1.54% | 0.32% |
| Newcrest Mining Ltd | 1.48% | 0.31% |
| Incitec Pivot Ltd | 1.39% | 0.29% |
| Lendlease Group | 1.30% | 0.27% |
| QBE Insurance Group Ltd | 1.28% | 0.27% |
| Alumina Ltd | 1.22% | 0.26% |
| Macquarie Group Ltd | 1.21% | 0.26% |
| 49.58% | 10.44% |
| Security | % of asset class | % of Balanced (MySuper) option |
| Facebook Inc | 1.94% | 0.53% |
| Alibaba Group | 1.91% | 0.52% |
| Tencent Holdings LTD | 1.55% | 0.42% |
| Alphabet Inc | 1.24% | 0.34% |
| Samsung Electronics Co LTD | 1.19% | 0.33% |
| Amazon Dotcom Inc | 1.19% | 0.32% |
| Roche Holding Ag | 1.17% | 0.32% |
| Linde PLC | 1.12% | 0.30% |
| Comcast Corp | 1.11% | 0.30% |
| Netease Inc | 1.08% | 0.30% |
| Nestle SA | 1.04% | 0.28% |
| Heineken NV | 1.02% | 0.28% |
| Microsoft Corp | 1.02% | 0.28% |
| Apple Inc | 0.98% | 0.27% |
| Taiwan Semiconductor Manufacturing Co LTD | 0.98% | 0.27% |
| Medtronic PLC | 0.91% | 0.25% |
| Walt Disney Co | 0.89% | 0.24% |
| Tesla Inc | 0.82% | 0.22% |
| Visa Inc | 0.82% | 0.22% |
| Accenture PLC | 0.79% | 0.22% |
| 22.78% | 6.20% |
| Location | % of asset class |
| ACT | 2.5% |
| NSW | 45.7% |
| QLD | 18.5% |
| SA | 1.9% |
| VIC | 25.2% |
| WA | 6.2% |
| Other | 0.0% |
| Total | 100.0% |
| Sector | % of asset class |
| Retail | 30.5% |
| Office | 62.2% |
| Industrial | 6.6% |
| Other | 0.7% |
| Total | 100.0% |
| Location | % of assets |
| Overseas | 25.0% |
| NSW | 24.5% |
| VIC | 23.6% |
| QLD | 7.4% |
| WA | 11.6% |
| TAS | 0.0% |
| NT | 1.2% |
| SA | 1.7% |
| ACT | 2.5% |
| Other | 0.0% |
| Multiple | 0.0% |
| Listed | 0.0% |
| Other Net Assets | 2.4% |
| Total | 100.0% |
| Sector | % of assets |
| Airports | 38.2% |
| Seaports | 8.2% |
| Other Economic | 5.9% |
| Utilities | 25.1% |
| Social | 12.8% |
| Communications | 9.6% |
| 100.0% |
| Government bonds / Cash | Non-Government | |||||
| Australia | Overseas | Total | Australia | Overseas | Sub-total | Total |
| 22.73% | 23.23% | 45.96% | 35.27% | 18.73% | 54.00% | 100% |
| Credit rating | |||||
| AAA | AA | A | BBB | Below BBB | Total |
| 41.26% | 15.54% | 17.19% | 21.91% | 4.07% | 100% |
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.