Income account investment options - BUSSQ

Income account investment options

Choose an Income account investment strategy that best suits your needs and tolerance for risk.

BUSSQ INCOME ACCOUNT (PENSION)

There are 10 investment options to choose from so you can mix and match to suit your needs. Importantly, you are not tied down to one investment strategy - you can change your investment options, at no cost when it suits you.

Pre mixed options

Premium Balanced Growth

Designed for medium to long term investors. Premium Balanced Growth is the
most diversified Premixed option and provides a mix of growth and defensive assets such as shares, property and fixed interest securities. The frequency of a negative return is expected to be once in eight years.

INVESTMENT OBJECTIVE

For the annual rate credited to members to exceed the change in the Consumer Price Index by +4% per annum.

TARGET ASSET ALLOCATION

IA BALANCE Range

 

RISK FACTOR

IA BALANCE Risk

SUGGESTED MINIMUM TIMEFRAME

At least 5 years

RETURNS

Year Ending 30 June

Income account

2018
10.47%
2017
9.40%
2016 7.48%
2015 10.65%
2014 14.52%
2013 18.74%
2012 2.21%
2011  10.56%
2010 8.67%
2009 -11.86%
2008 -4.74%

Defensive Defensive

Designed for short to medium term investors looking for stable returns
with minimal capital growth. The Defensive option provides investment mainly in fixed interest securities, with moderate exposure to growth assets, such as shares and property. The frequency of a negative return is expected to be once in 30 years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +3% per annum.

Target asset allocation

IA DEFENCE Range

 

Risk factor

IA DEFENSIVE Risk

Suggested minimum timeframe

At least 3 years.

RETURNS

Year Ending 30 June

Income account

2018
8.17%
2017
6.05%
2016 6.25%
2015 7.15%
2014 9.24%
2013 10.90%
2012 4.87%
2011 8.68%
2010 8.35%
2009 -6.77%
2008 2.40%

High Growth High Growth

This option may suit long term investors looking for an attractive return and capital growth who can tolerate a higher level of risk and volatility. High Growth provides a high allocation of investments to growth assets, such as shares. The frequency of a negative return is expected to be once in five years.

Investment objective

For the annual rate credited to members to exceed the change in the Consumer Price Index by +4.5% per annum.  

Target asset allocation

IA HIGHGROWTH Range

Risk factor

IA HIGHGROWTH Risk

Suggested minimum timeframe

At least 10 years .

RETURNS

Year Ending 30 June

Income account

2018
12.39%
2017
11.56%
2016 7.68%
2015 11.38%
2014 16.39%
2013 22.41%
2012 0.01%
2011  13.29%
2010 10.20%
2009 -13.47%
2008 -8.42%

Single asset class

Cash Cash

This investment option is for investors who are risk averse and looking for a secure 100% cash investment. This option may suit members who are willing to sacrifice overall return in favour of less risk and a steady rate of return. The Cash pool aims to avoid negative returns in any year.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +1% per annum.

Target asset allocation

IA CASH Range

Risk factor

IA CASH Risk

Suggested minimum timeframe

Not applicable.

RETURNS

Year Ending 30 June

Income account

2018
2.44%
2017
2.08%
2016 2.27%
2015 2.61%
2014 2.81%
2013 3.88%
2012 5.41%
2011 5.95%
2010 4.67%
2009 3.27%
2008 6.37%

Diversified Fixed Interest Diversified Fixed Interest

This investment option is for investors looking for a stand-alone Fixed Interest investment. This option invests in BUSSQ’s Australian and International Fixed Interest sectors with weightings that replicate the Premium Balanced Growth option’s allocations to these two sectors. The frequency of a negative return is expected to be once in 20 years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +2% per annum.

Target asset allocation

IA DIVERSIFIED Range

Risk factor

IA DIVERSIFIED Risk

Suggested minimum timeframe

At least 3 years.

RETURNS

Year Ending 30 June

Income account

2018
2.37%
2017
2.56%
2016 3.16%
2015 3.65%
2014 5.33%
2013 3.91%
2012 9.37%
2011 7.84%
2010 16.22%
2009 4.13%
2008 7.19%

Australian Shares Australian Shares

This investment option is for investors looking for a stand-alone Australian Shares investment. This option is a sector specific option and invests 100% in BUSSQ’s Australian Shares sector. The frequency of a negative return is expected to be once in four years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +4.5% per annum.

Target asset allocation

IA AUS SHARES Range

Risk factor

IA AUS SHARES Risk

Suggested minimum timeframe

At least 10 years

RETURNS

Year Ending 30 June

Income account

2018
15.65%
2017
15.02%
2016 7.81%
2015 6.76%
2014 19.69%
2013 25.02%
2012 -6.69%
2011 16.73%
2010 14.84%
2009 -18.09%
2008 -13.15%

Australianlarger Companieshares Australian (Larger Companies) Shares (CLOSED)

Effective 1st November 2018, the Australian Shares Large Companies investment option will close to new and existing investment. If you are invested in this option you will be required to submit an investment switch to an alternative investment before 6pm on Friday, 26th October. Members who do not perform an investment switch will be automatically switched into the Australian Shares option.

This investment option is for investors looking for a standalone investment focused on shares in larger Australian companies. This option is a sector specific option and invests 100% in Australian shares and, in particular, larger listed companies. The frequency of a negative return is expected to be once in four years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +4.5% per annum.

Target asset allocation

Australian Larger Companies Shares Allocation

Risk factor

very-high 

Suggested minimum timeframe

At least 10 years

RETURNS

Year Ending 30 June

Pension

2018
15.05%
2017
15.00%
2016 6.33%
2015 6.46%
2014 18.75%
2013 26.15%
2012 -1.83%

Australian Small Companies Shares Australian (Small Companies) Shares

This investment option is for investors looking for a standalone investment, focused on shares in smaller Australian companies. This option is a sector specific option and invests 100% in Australian shares and, in particular, smaller listed companies. The frequency of a negative return is expected to be once in four years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +5% per annum.

Target asset allocation 

IA AUS SMALL SHARES Range 

Risk factor

IA AUS SMALL SHARES Risk

Suggested minimum timeframe

At least 10 years.

RETURNS

Year Ending 30 June

Income account

2018
16.53%
2017
14.27%
2016 11.15%
2015 8.15%
2014 24.98%
2013 10.77%
2012 -8.45%

All Shares All Shares

This investment option is for investors looking for a diversified shares investment covering both Australian and International Shares. The option will invest 50% in Australian Shares and 50% in Overseas Shares with no currency hedging (unhedged). The frequency of a negative return is expected to be once in four years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index by +4.5% per annum.

Target asset allocation

IA ALL SHARES Range

 

Risk factor

IA ALLSHARES Risk

Suggested minimum timeframe

At least 10 years.

RETURNS

Year Ending 30 June

Income account

2018
14.32%
2017
17.01%
2016 5.32%
2015 14.08%
2014 19.38%
2013 28.23%
2012 -4.52%

International Shares unhedged International Shares

This investment option is for investors looking for a stand-alone International Shares investment. This option has variable currency hedging depending on market conditions and the assessed relative value of the Australian dollar. The frequency of negative return is expected to be once in four years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index +4.5% per annum.

Target asset allocation

IA INTERNATIONAL SHARES Range

Risk factor

IA INTERNATIONAL SHARES Risk

Suggested minimum timeframe

At least 10 years.

RETURNS

Year Ending 30 June

Income account 

2018
13.48%
2017
18.49%
2016 3.33%
2015 20.95%
2014 20.25%
2013 31.67%
2012 5.69%
2011  6.11%
2010 8.99%
2009 -14.97%
2008 -20.11%

International Emerging Markets Shares International (Emerging Markets) Shares

This investment option is for investors looking for a standalone investment in International Shares in emerging market countries (ie. Brazil, India, China). This option is unhedged, which means that it will be subject to fluctuations in performance because of currency movements. The frequency of a negative return is expected to be once in four years.

Investment objective

For the annual rate credited to members to have a reasonable probability of exceeding the change in the Consumer Price Index +5% per annum.

Target asset allocation

IA EMERGING SHARES Range

Risk factor

IA EMERGING SHARES Risk

Suggested minimum timeframe

At least 10 years.

RETURNS

Year Ending 30 June

Income account

2018
10.21%
2017
17.86%
2016 -8.32%
2015 16.46%
2014 14.31%
2013 20.41%
2012 -5.37%

Financial Planning Advice from BUSSQ's Experienced Financial Planners

You don’t have to make investment decisions about your super fund on your own. BUSSQ offers members straightforward financial advice about choosing investment options at no extra cost, as it’s included in the fund’s administration fees. Book in to speak with a BUSSQ Financial Planner.