Investment options

Investment choice

ANZ Staff Super offers members the choice of four investment options. You can invest your super or Retirement Section account in one or any combination of the four available options.

Each investment option has different investment objectives, asset allocation and risk and return expectations.

Your choices are:

Aggressive Growth

The majority of assets are invested in shares with small allocations to property and alternative investments.

Balanced Growth

(A MySuper product) Typically around 65% is invested in shares and property and around 18% is invested in alternative assets.

Cautious

Typically around 60% is invested in diversified fixed interest securities and cash.

Cash

100% is invested in short-term money market securities and fixed interest securities with short durations.

Log in to your account, click ‘Investments’ on the dashboard and see the description; objective; standard risk measure; minimum suggested timeframe; asset allocation; and recent investment performance for each investment option.

Super members who do not make an investment choice will be invested in the Balanced Growth option (the default option).

Retirement section members who do not make an investment choice will be invested in the option(s) that most recently applied to your account balance in the Employee Section, Employee Section C, Personal or Partner Section (whichever is applicable).

For more on information on each of ANZ Staff Super’s investment options and what to consider when making an investment choice, read the PDS relevant to your section.

Investment performance

For details about ANZ Staff Super's most recent monthly performance and how we have performed relative to our peers, please visit the Investment returns page.

Risk and return

Generally, all investments have the potential to increase or decrease in value, or stay the same. An increase in value generates a positive return while a decrease in value generates a negative return. Generally, the greater an investment’s potential return, the greater the risk associated with that investment.

Each of ANZ Staff Super’s investment options has a different mix of risk and likely return as illustrated below.

You should be comfortable with the level of risk associated with the investment option(s) you choose.

  • What are the risks associated with investing?
    All investments, including super and Retirement section accounts, carry a degree of risk. The most common types of risks are listed below.
    • Inflation
      Inflation may exceed the rate of return on your investment.
    • Individual investment risk
      Individual assets can and do fall in value for many reasons, such as changes in its internal operations or management or in its business environment.
    • Market risk
      Changes in economic, technological, political or legal conditions and in market sentiment can impact on investment markets and affect investment returns. Market risk is managed by appropriately diversifying the Scheme's investments both within and between asset classes and markets as part of the strategic asset allocation.
    • Currency risk
      Some investments are held overseas. If the currencies in which these investments are held change in value relative to the Australian dollar, the value of these investments can change. For international shares, the Trustee's policy is to have a partial currency hedge. This provides some protection against decreases in the value of the foreign currencies in which the shares are held, but also allows some of the benefit of increases in the value of foreign currencies to flow through to investment returns. After taking advice from its professional advisers, the Trustee has adopted the following hedging ranges:
      Aggressive Growth 0%-50%
      Balanced Growth 25%-75%
      Cautious 50%-100%

      Within these ranges the Trustee has adopted the following hedging ratios:
      Aggressive Growth 25%
      Balanced Growth 30%
      Cautious 50%

      For international fixed interest securities, the Trustee's policy is to have a full currency hedge so that investment returns relate solely to the performance of this asset class.
    • Derivatives risk
      Risks associated with derivatives include the value of the derivative failing to move in line with the underlying asset, illiquidity, inability to meet payment obligations as they arise and counterparty risk.
      The Trustee does not directly invest in derivatives such as futures and options, but does use foreign exchange forward contracts for hedging. Investment managers may use derivatives in managing portfolios for the Trustee and in managing pooled investment vehicles in which the Trustee invests. Derivatives are used to reduce risk, reduce transaction costs and as an efficient way of gaining exposure to certain asset classes. Limits on the extent of derivative use are specified in the investment management agreements between the Trustee and investment managers.
    • Scheme risk
      Risks particular to the Scheme include closure of the Scheme, Trustee changes and investment manager selection.
    • Changes to super law
      Superannuation law changes often. These changes may affect your investment.
    • Changes to tax law
      Taxation law changes often. These changes may affect your investment.
    • Liquidity and cash flow risk
      Liquidity risk is the risk that the Scheme will encounter difficulties in meeting benefits and other financial obligations because it is unable to realise investments in a timely manner.
      Liquidity risk is managed by monitoring the Scheme's holdings in illiquid assets. The assets deemed most illiquid are limited to 14% of the total market value of the Scheme's assets. Other assets are held in readily realisable assets which are actively traded on exchanges such as the Australian Stock Exchange.

      ANZ Staff Super also has limited ability to borrow in the short term to ensure settlement of financial obligations.
    • Credit risk
      Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.
      Concentrations of credit risk are minimised by investing in various unlisted unit trusts which in turn hold diversified direct market investments. These unit trusts undertake transactions with a large number of counterparties on recognised and reputable exchanges.
    • Interest rate risk
      Changes in interest rates may impact on investment returns.

For more information on the risk and return of each of ANZ Staff Super’s investment options, read the PDS relevant to your section.

How investments are managed

ANZ Staff Super’s investments are managed by professional investment managers. The Trustee is responsible for manager selection and monitoring their performance.

The following table shows the asset classes that ANZ Staff Super invests in and the investment managers appointed to each asset class.

 

Asset class

Investment manager

Australian Shares
International Shares
Australian Direct Property
Global Listed Real Estate
Australian Fixed Income
International Fixed Income
Diversity
Private Equity
Global Infrastructure
Global Listed Infrastructure
Global Credit

Note that this information is correct as at September 2020. ANZ Staff Super's cash holdings are held with ANZ.

Environmental, social and governance statement

Management of environmental, social and governance (ESG) issues is a necessary element in ensuring that the Trustee’s investment portfolio continues to maximise its likelihood of future investment success relative to its long term risk exposures.

The Trustee outsources the implementation of its investment strategy to external investment managers, predominantly through pooled funds and therefore considers ESG when appointing managers.

The Trustee recognises that ESG factors can have varying degrees of relevance across asset classes and each investment manager will have its own policy on the extent to which labour standards or environmental, social and governance issues are taken into account when making investment decisions. The ESG policies of each individual manager, as well as any ESG tailwinds accessed by the manager’s strategies, are considered during the due diligence process undertaken at the time of their selection. Adherence to a manager’s ESG policies is referenced when monitoring their management of ESG factors and risks.

Accordingly the fund’s investment managers must be able to provide details of their ESG policy. For example, this may be satisfied through demonstrating the adoption of the United Nations Principles of Responsible Investing (UNPRI)[1] including reporting of their actions and / or in the case of property and infrastructure assets, evidencing their annual GRESB assessments[2]. As part of periodic investment manager reviews[3], compliance with their stated ESG policies will be assessed.

As a way of capturing developments / trends in ESG practices within investment management, the status of ESG practices employed by managers is a standing item at all portfolio update meetings.

The Trustee also recognises that applying this policy may better align its members' expectations with broader objectives of society and may from time to time express views on issues to the investment managers.

As part of its manager appointment process, the Trustee will consider the extent to which managers incorporate ESG-related exclusions. Where it will not negatively impact long term risk adjusted returns to a material extent, the Trustee will also consider explicitly screened investment products.

The Trustee considers that engagement and voting in relation to underlying investments is best performed by the Fund's investment managers, who can use their scale to better influence outcomes. As such, the Trustee expects that, where appropriate to the asset class and underlying investments, the Fund’s investment managers will undertake engagement with companies and exercise voting rights in a manner that supports the management of ESG risks within underlying investments and assesses the approach that managers take to engagement and voting as part of the manager selection process.

The Trustee, with the assistance of the Asset Consultant, also conducts option level analysis of exposures to ESG risks and opportunities in order to identify any unintended concentrations of risk. This analysis includes an assessment of sustainability related risks arising from a number of different climate-related, environmental, social and governance metrics and an assessment of investment manager sustainability integration. These metrics are calculated using a mix of sources that seek to capture the risks and opportunities of the portfolio. Where areas of concern are identified, the Trustee will investigate the contributors to the relevant metric and identify whether any action is required, which may include further engagement with investment managers or portfolio changes.

 

[1] The UNPRI works with its international network of signatories to put the six Principles for Responsible Investment into practice. Its goals are to understand the investment implications of environmental, social and governance issues and to support signatories in integrating these issues into investment and ownership decisions.
[2] Real estate and infrastructure managers and companies use the GRESB assessments to measure, benchmark and improve their sustainability programs and report to their investors on their ESG performance.
[3] Undertaken either as part of formal manager meetings conducted by the Fund’s Asset Consultant or Portfolio updates between the Fund and investment manager that are conducted during the year.

Climate change position statement

The Trustee accepts that climate change is expected to give rise to risks on members’ superannuation outcomes via regulatory, environmental, economic and social impacts.

These risks will be considered by the Fund in the manager selection process and addressed by each fund manager via their ESG policy and in the practical implementation of their portfolios.

A transition to a low carbon global economy will lead to both risks and opportunities in relation to the Fund’s investments. Considering this will improve the Fund’s understanding of these implications on investment performance to better manage the related risks and opportunities.

Changing investment options

ANZ Staff Super members can select one, or a combination of the following four investment options:

  • Aggressive Growth
  • Balanced Growth
  • Cautious
  • Cash

You can change your investment selection weekly at no cost to you. This is known as ‘switching’.

You can also choose to place your current account balance in more than one investment option in any proportion you wish.

If you are a super member you can choose to direct future contributions and other cashflow (such as rollovers) to more than one investment option in any proportion you wish.

If you are a Retirement Section member you can choose to have future cashflows (such as income payments) drawn from one or more investment options if you’ve chosen a combination of investment options for your account balance.

While you can change your investment selections weekly, you should think carefully about making any changes based on your reaction to short-term fluctuations in the value of your investment. Super is generally considered to be a long-term investment in which you should take a considered long-term view of investment markets.

Log in to your account, click ‘Investments’ on the dashboard. Press ‘edit’ if you wish to change any of your current investment or future contributions investment options.

Important note: if you submit a change to your investments before 5pm (AEST) Thursday, it will be processed on the following Wednesday using the weekly unit prices for that day. Changes submitted after this time will be proccessed on the Wednesday after next. During times of extreme market volatility, processing of members', request may be delayed. Any switch will take effect from the date it is processed.

As your circumstances change, you may need to review your investment options. But before you make a choice, you should seek financial advice from a licensed financial planner. You can contact an ANZ Staff Super financial adviser on 1800 000 086 who can give limited financial advice over the phone.

Unit prices

Your ANZ Staff Super account is recorded as a unit holding in one or more of the underlying investment options.

Each investment option has a unit price. The unit price of a particular investment option is the value of its net assets divided by the number of units on issue. The “value of net assets” is the current market value of assets in an investment option, after deducting current liabilities such as accrued investment tax (where applicable) and investment related expenses.

Unit prices are set weekly or, in certain circumstances, more frequently as determined by the Trustee.

As asset values fluctuate, unit prices will go up and down. The investment return for each investment option is calculated as the percentage change in unit prices for the year, to provide a measure of investment performance.

To check current or historical unit prices of ANZ Staff Super investments go to the account login page. Click either the ‘Unit Prices Super’ or ‘Unit Prices Pension’ button and submit a date to show unit prices for that day. You can also check unit prices when logged into your account by clicking ‘Investments’ on the dashboard, scrolling down to ‘Unit Prices’, and submitting a date to show the relevant unit price.

You can also click on your investment options to see current number of units and the current price.

Financial advice

Get the advice you need before you make an investment choice or switch investment options. You can contact an ANZ Staff Super financial adviser on 1800 000 086 who can give you limited advice on the investment options available and your investment strategy.   

If your needs are simple, an ANZ Staff Super financial adviser can help.

The Trustee of ANZ Staff Super has entered into an agreement with Mercer Financial Advice (Australia) Pty Ltd under which Mercer's financial advisers have been engaged to provide members with general or limited personal financial advice about options available within ANZ Staff Super over the phone for no extra charge.

These financial planning services are provided by Mercer Financial Advice (Australia) Pty Ltd ABN 76 153 168 293, AFSL#411766. Any advice provided by Mercer's advisers is not provided or endorsed by the Trustee and is not provided under the Trustee’s AFSL.

Call us on 1800 000 086
1800 000 086
Calling from Overseas: +61 3 8687 1829

8.00am - 6.00pm
Monday - Friday (AEST/AEDT)




Write to us

ANZ Staff Super
GPO BOX 4303 Melbourne VIC 3001