The Property option is closing

We regularly review our investment options to make sure members have a suitable and high value range of investment choices.

The number of members investing in the Property option has declined dramatically in recent years. This, along with several other factors, limits our ability to effectively manage liquidity in this option, and the underlying investments and costs for members in this option.

The Property option will close at 4pm (AEST) on Friday 10 September 2021. This means you can’t stay invested in the Property option after this date.

To make way for this change, you won’t be able to select the Property option, or increase your existing allocation in the Property option after 4pm (AEST) on Friday 3 September 2021.

You don’t need to do anything unless you want to – you can decide to:

Make your own choice – if you’d like to move your money from the Property option into a different investment option(s) and change how your future contributions will be invested, you can.

Just log into your online account and make your investment choice(s) before 4pm (AEST) on Friday 10 September 2021.

Keep in mind, you won’t be able to select the Property option, or increase your existing allocation in the Property option after 4pm (AEST) on Friday 3 September 2021.

Read all about our investment options, including investment objectives, fees and costs, asset allocations and risk level for each option.

Do nothing - we’ll automatically move your money from the Property option into the Balanced option after close of business on Friday 10 September 2021. 

After this date, any future contributions which would have been invested in the Property option will automatically be invested into the Balanced option as well.

We’ve selected the Balanced option for a couple of reasons – it’s our default (MySuper) option for members who don’t make an investment choice, and it still gives you access to property exposure.

The Balanced option has a combination of asset classes including shares, private equity, infrastructure, property, fixed interest, credit and cash. This option is designed to have medium to long-term growth with possible short-term fluctuations.

Read all about our Balanced option, including investment objectives, fees and costs, asset allocation and risk level.

Just log into your online account and make your investment choice(s) before 4pm (AEST) on Friday 10 September 2021.

To switch out of the Property option:

1.   Log into your online account

      If you need to reset your password just follow the instructions on the login page.

2.   For super accounts: Go to ‘Manage my account’ – ‘Super investments’ – ‘Change my investments’ and complete the steps

      For pension accounts: Go to ‘Manage my account’ – ‘Retirement income investments’ – ‘Make an investment change’ and complete the steps.

 

Your money always stays invested.

If you choose to do nothing, your investment returns will continue to be calculated and applied to the Property option, up until close of business on Friday 10 September 2021. Then, we’ll move your money from the Property option into the Balanced option and you’ll start earning returns* in the Balanced option.

* Investment returns aren’t guaranteed.

Liquidity is the proportion of an investment portfolio which is held in cash, or in investments that can readily be sold to raise cash.

Our PreMixed options, invest in liquid assets, which include cash, and assets traded on public markets, such as listed shares and government bonds. AustralianSuper’s Investment team ensures that each investment option retains adequate liquidity for member cashflows and investment activities.

Generally, investing in direct property offers members a more stable investment across economic cycles than listed property. However, the trade-off is that direct property is illiquid and can’t be converted to cash as easily as other asset types.

Read more about understanding liquidity and your super

Yes.

If you invest in our PreMixed investment options, we’ve done the diversification for you. These investment options are made up of more than one asset class, and most options include property. For example, the Balanced option currently has an allocation of about 5% to direct property.

We also offer Member Direct, which gives you more control of your investments. You can invest in shares, Exchange Traded Funds (ETFs), Listed Investment Companies (LICs), term deposits and cash. By investing in ETFs you’ll have access to listed property and/or infrastructure assets.

Read all about our investment options, including investment objectives, fees and costs, asset allocations and risk level for each option.

 

Your Investment choices

It doesn’t cost you anything to change your investment choice.

Before making a choice, you should consider your investment timeframe, personal circumstances, and goals. And the different investment objectives, fees and costs, asset allocations and risk levels for each option.

For help making a choice, you may want to talk your financial adviser (if you have one) or we have a mix of advice options to help you.

Yes.

If you invest in our PreMixed investment options, we’ve done the diversification for you. These investment options are made up of more than one asset class, and most options include property. For example, the Balanced option currently has an allocation of about 5% to direct property.

If you wish to invest in an option that has a higher allocation to property, some ETFs in our Member Direct investment options invest in listed property. However, you can only invest between 20% and 30% of your total balance in one or more of these ETFs.

Note additional fees apply to the Member Direct investment option.

Refer to the investment menu to obtain a full list of the different options available via Member Direct.

Before making a choice, you should consider your investment timeframe, personal circumstances, and goals. And the different investment objectives, fees and costs, asset allocations and risk levels for each option.

For help making a choice, you may want to talk your financial adviser (if you have one) or we have a mix of advice options to help you.

The administration fee for your super or TTR Income account won’t change. However, the investment fees are different for each option.

Last year, the Balanced option had a slightly lower investment cost than the Property option, shown below

Balanced option investment costs % per year of your account balance (FY 2020/21)	Property option investment costs % per year of your account balance (FY 2020/21)
0.63%	0.68%

Investment costs are paid from your investment earnings before the earnings are added to your account.

Find out more about our fees and costs

Before we close the Property option, we must give members advanced notice that the option is closing, and complete financial reconciliation processes. To ensure that we have time to meet these requirements, we’re making this change effective from Friday 10 September 2021.

AustralianSuper is one of the largest investors in unlisted property in Australia and we’ll continue to invest in the property asset class here and overseas. The PreMixed options will also continue to allocate assets to property investments.

Currently we have over $11 bn invested (as at 30 June 2021) in a wide range of direct property investments such as retail, industrial, office and residential. We aim to have about 5% of members assets invested in unlisted property.

If you do nothing, after close of business on 10 September 2021, we’ll automatically move your money from the Property option into the Balanced option.

Any future contributions which would have been invested in the Property option will automatically be invested into the Balanced option.

Once this transfer is complete, you’ll see the transfer of money into the Balanced option in your transaction history and investment allocation.

It can take up to 3 business days for investment changes to appear in your online account and in the mobile app.  

Then, if you want to, you can change your investment choice(s).

We’ve selected the Balanced option for a couple of reasons – it’s our default (MySuper) option for members who don’t make an investment choice, and it still gives you access to property exposure.

The Balanced option has a combination of asset classes including shares, private equity, infrastructure, property, fixed interest, credit and cash. This option is designed to have medium to long-term growth with possible short-term fluctuations.

Read all about our Balanced option, including investment objectives, fees and costs, asset allocation and risk level.

The Property option is part of our DIY Mix options, and only consists of 2 asset classes with about 97% Direct property and 3% Cash.

In contrast, the Balanced option, which is part of our PreMixed options, offers greater diversification by investing in a wider range of assets.

Read all about our Balanced option

Over the past 5 years, the return for Property option is 3.79% pa; for the Balanced option it’s 10.44% pa. The higher average yearly return for the Balanced option over the past 5 years is partly due to the option’s different investment objective and diversified investment holdings.  

However, investment returns are not guaranteed, and past performance is not a reliable indicator of future performance.  

As at June 2021

Investment option returns as at 30 June 2021
Investment Option	1 year	5 years pa	10 years pa	15 years pa	20 years pa
Balanced	20.43%	10.44%	9.73%	7.49%	7.91%
Property	4.26%	3.79%	5.91%	5.02%	6.33%

Yes, until 4pm (AEST) on Friday 3 September 2021.

To make way for this change, a week before we close the option, you won't be able to select the Property option or increase your allocation after this time.

If you change any of your other investment options after this time, you’ll also need to change out of the Property option at the same time.

if you’d like to move your money from the Property option into a different investment option(s) and change how your future contributions will be invested, you can.

Just log into your online account and make your investment choice(s) before 4pm (AEST) on Friday 10 September 2021.

Keep in mind, you won’t be able to select the Property option, or increase your existing allocation in the Property option after 4pm (AEST) on Friday 3 September 2021.

 

Your Investment choices

It doesn’t cost you anything to change your investment choice.

Before making a choice, you should consider your investment timeframe, personal circumstances, and goals. And the different investment objectives, fees and costs, asset allocations and risk levels for each option.

For help making a choice, you may want to talk your financial adviser (if you have one) or we have a mix of advice options to help you

Yes, you can still make contributions into the Property option until 4pm (AEST) on Friday 10 September 2021.

After this time, any future contributions which would have been invested in the Property option will automatically be invested into the Balanced option. 

You don’t need to do anything unless you want to.

If we receive any contributions which would have been invested in the Property option after 4pm (AEST) Friday 10 September 2021, we’ll automatically invest these into the Balanced option.

To change how your future contributions will be invested, just log into your online account.

Yes – we’ll honour any valid withdrawal, rollover or transfer requests received, including financial hardship or compassionate ground claims. 

Yes – investment fees will continue to be deducted from your returns until you switch options, or until close of business Friday 10 September 2021 when we’ll automatically transfer any remaining money from the Property option to the Balanced option.  

Administration fees, insurance premiums (if applicable), and other fees and costs are deducted evenly across all options you’re invested in.

No – it doesn’t cost you anything to change your investment choice.

No – you don’t need to do this in a single transaction. if you’d like to move your money from the Property option into a different investment option(s) and change how your future contributions will be invested, you can.

Just log into your online account and make your investment choice(s) before 4pm (AEST) on Friday 10 September 2021.

Keep in mind, you won’t be able to select the Property option, or increase your existing allocation in the Property option after 4pm (AEST) on Friday 3 September 2021. If you change any of your other investment options after this time, you’ll also need to change out of the Property option at the same time.

No. This change won’t impact how your investments are displayed in your account.

However, if you’re still invested in the Property option after 4pm (AEST) on Friday 10 September 2021, you may notice the Property option and your investment amount is shaded in grey. This means, we’re in the process of automatically transferring your money from Property option into the Balanced option.

It can take up to 3 business days for investment changes to appear in your online account and in the mobile app.

You’ll see the transfer of money into your Balanced investment option in your transaction history and investment allocation.

If you do nothing, we’ll automatically transfer your money from Property option into the Balanced option after close of business on Friday 10 September.

It can take up to 3 business days for investment changes to appear in your online account and in the mobile app.

You’ll see the transfer of money into your Balanced investment option in your transaction history and investment allocation.