Like many other super funds, TelstraSuper offers its members a suite of different investment options. These investment options have different objectives and different levels of risk. Some of these investment options are diversified across asset classes – in other words, they invest in a range of different asset classes, and in many investments within each asset class. And some of our investment options invest in only one asset class.

TelstraSuper members are free to choose which investment option, or which combination of investment options, best suits their personal objectives and needs.
For example a member that is willing take a fair amount of investment risk might choose our Balanced investment option which aims to have about 54% of its investments in shares, 16% in fixed interest, 10% in unlisted property, 7% in infrastructure assets, and 6% in cash. It also has smaller allocations to other asset classes. The point of having this diversified asset allocation is to spread risk and provide exposure to multiple drivers of investment returns.

A member that is less comfortable with risk, or has lower investment return objective, might choose our Conservative option which has less shares and more defensive assets such as cash and fixed interest, but still has a diversified investment approach.

Our role in the TelstraSuper investment team is to make sure our investment options remain consistent with the stated objectives, risk profiles and asset allocations. Although we do adjust the portfolios in response to market changes and the investment outlook, we would not move an entire option into cash, because that would be a breach of the investment strategy that we’ve communicated to our members. It would also mean that the investment option would not benefit at all from upward movements in the value of shares and other investments.

Thanks once again for all of your questions. Please keep them coming by sending them to the email address on your screen, and I’ll make sure I address them in an upcoming video.