Foundation + Flex investment approach
Whether you’re saving for retirement or already retired, the investment choices you make today, and how you adjust them over time, can make a real difference. With our Foundation + Flex investment approach, you can choose how your super is invested.
What is Foundation + Flex?
Foundation + Flex gives you a simple and flexible way to structure your super investments.
You start with a diversified foundation investment and can choose to add other options to adjust your investment mix.
There are two parts:
Your foundation option
This is our diversified Balanced Growth option.
It spreads your investment across different types of growth and defensive assets and can do the job entirely on its own.
Your flex options
These are separate single asset class investment options you can add alongside your foundation, or can be used on their own.
They let you adjust the mix of your investments and how much risk you take. For example, you might include more defensive assets like bonds and cash to reduce risk, or more growth assets like shares if you’re comfortable with market ups and downs. Flex options let you do that. The right mix depends entirely on your own circumstances, risk tolerance and what you’re trying to achieve.
Defensive assets are generally steadier with lower long term growth potential, while growth assets typically have higher long term growth potential with more short term ups and downs.
Investment options at BUSSQ
Explore the different investment options available including those used in the Foundation + Flex approach.
How the approach may work for you
Foundation + Flex approach can be used in different ways, depending on your goals, investment timeframe and comfort with risk.
Here are some examples showing how it may work based on different risk preferences.
Lower risk profile
May suit someone with a short to medium investment timeframe of at least three years and prefers smaller changes in the value of their investments.
Investment mix:
Balanced Growth is used as the foundation to provide diversification. Cash and Bonds are added as flex options to create a more stable investment mix.
Medium to high risk profile
May suit someone with a medium to long term investment timeframe of at least five years and is looking for a balance between growth and stability.
Investment mix:
Balanced Growth is used as the stand alone diversified foundation.
Higher risk profile
May suit someone with a longer investment timeframe of at least ten years and is comfortable with short term changes in the value of their investments.
Investment mix:
Balanced Growth is used as the foundation to provide diversification. Australian Shares and International Shares are added as flex options to place more emphasis on return seeking investments over time.
These examples are provided as illustrations only and are intended to demonstrate different ways investment options can be structured. You can adjust the amount of each Foundation or Flex option. The right approach will depend on your own investment timeframe, risk comfort and circumstances.
Choose what suits you
Foundation + Flex is just one way to invest your super.
If it’s not right for you, you can stay with your current investment strategy or choose from any of our available options at any time.
Applying the Foundation + Flex approach
Step 1: Choose your foundation investment option
Balanced Growth is the foundation investment option. For some members, it’s how all of their super is already invested.
If you’re happy with your foundation investment on its own, you don’t need to do anything else.
Step 2: Decide whether to add flex options
Adding flex options is optional.
If you want to personalise your investment mix, flex options allow you to invest more or less in a particular asset class. Flex also lets you adjust the level of risk in your overall investment mix to have a more defensive or growth focus depending on your comfort with risk and investment timeframe. The right choice will depend on your own circumstances and what you’re looking to achieve.
Step 3: Make changes over time
Your investment choices don’t need to stay the same.
Circumstances change, and your investment mix can change with the market. You should review and update your choices regularly, so your risk comfort remains appropriate for you.
Foundation + Flex explained
Watch this short video to see how BUSSQ’s Foundation + Flex investment approach works.
