All State Super scheme assets are invested in the Pooled Fund. Generally, how investment returns affect a member's benefit depends on whether the superannuation scheme is a defined benefit or accumulation scheme. The State Super schemes are designed as defined benefit schemes. In a defined benefit scheme the member's benefit is based on a formula set out in the scheme rules and is not affected by investment returns.

The State Authorities Superannuation Scheme (SASS) however, is classified as a hybrid scheme because it has both a defined benefit component and an accumulation benefit component. In an accumulation scheme, a member's benefit comprises the contributions made to the scheme together with investment returns (positive or negative), less tax and expenses.

About the strategies

The information below explains each of the State Super investment strategies including strategic asset allocation.

Member investment choice strategies

Strategic asset allocation: 51.0% liquid growth; 36.0% alternatives; 13% liquid defensive.

Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+3.0% p.a. over rolling 7 year periods.

Risk: Medium to high (Risk Band 5: from 3 to less than 4 negative annual returns estimated over any 20 year period). For further information about the risk measure for the Growth Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The Growth Strategy has been designed for a long-term investment horizon (7 plus years) and a high tolerance to market volatility.

Strategic asset allocation

At 1 July 2019
Dynamic asset 
allocation range
Liquid growth51.0%35.0% - 67.0%
Australian Equities 22.5%  
International Equities 28.5%  
Alternatives36.0%28.0% - 44.0%
Property 8.0%  
Alternatives - Other 17.5%  
Infrastructure 10.5%  
Liquid defensive13.0%10.0% - 29.0%
Australian Fixed Interest 4.0%  
International Fixed Interest 2.0%  
Defensive Strategies 0.5%  
Cash 6.5%  
Total100.0% 

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Growth Strategy is estimated to experience on average 3 to 4 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.

For further information about the risk measures for each strategy, please refer to SASS Fact Sheet  15: Choosing an investment strategy.

Strategic asset allocation: 34.5% liquid growth 28.5% alternatives; 37.0% liquid defensive.

Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+2.0% p.a. over rolling 7 year periods.

Risk: Medium (Risk Band 4: from 2 to less than 3 negative annual returns estimated over any 20 year period). For further information about the risk measure for Balanced Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The Balanced Strategy has been designed for members with a medium-term investment horizon (7 years) and some tolerance to market volatility.

Strategic asset allocation

 At 1 July 2019 Dynamic asset 
allocation range
Liquid Growth34.5%24.5% - 44.5%
Australian Equities 12.5%  
International Equities 22.0%  
Alternatives28.5%20.5% - 36.5%
Property 8.0%  
Alternatives - Other 10.0%  
Infrastructure 10.5%  
Liquid Defensive37.0%27.0% - 47.0%
Australian Fixed Interest 7.5%  
International Fixed Interest 2.5%  
Defensive Strategies 0.5%  
Cash 26.5%  
Total100.0% 

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Balanced Strategy is estimated to experience on average 2 to 3 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.

For further information about the risk measures for each strategy, please refer to SASS Fact Sheet 15:Choosing an investment strategy.

Strategic asset allocation: 21.0% liquid growth; 24.5% alternatives; 54.5% liquid defensive.

Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+1.0% p.a. over rolling 4 year periods.

Risk of negative return: Low to Medium (Risk Band 3: from 1 to less than 2 negative annual return estimated over any 20 year period). For further information about the risk measure for Conservative Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The Conservative Strategy has been designed for members with a short-term investment horizon (4 years) with little tolerance for market volatility and a preference for security.

Strategic asset allocation

At 1 July 2019 Dynamic asset 
allocation range
Liquid growth21.0%13.0% - 29.0%
Australian equities 8.5%  
International equities 12.5%  
Alternatives24.5%16.5% - 32.5%
Property 8.0%  
Alternatives - Other 6.0%  
Infrastructure 10.5%  
Liquid defensive54.5%46.5% - 62.5%
Australian fixed interest 6.0%  
International fixed interest 3.0%  
Defensive strategies 0.5%  
Cash 45.0%  
Total100.0% 

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Conservative Strategy is estimated to experience on average 1- 2 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.

For further information about the risk measures for each strategy, please refer to SASS Fact Sheet 15: Choosing an investment strategy.

Strategic asset allocation: 100% liquid defensive.

Investment objective: To maximise the earnings rate subject to a greater than 80% probability of exceeding cash p.a. over rolling 3 year periods.

Risk: Very low (Risk Band 1: less than 0.5 negative annual returns estimated over any 20 year period). For further information about the risk measure for Cash Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The Cash Strategy has been designed for members with a short-term investment horizon of up to 3 years with no tolerance for market volatility.

Strategic asset allocation

At 1 July 2019
Liquid growth0.0%
Alternatives0.0%
Liquid defensive100.0%
Australian fixed interest 0.0%
International fixed interest 0.0%
Cash 100.0%
Total100.0%

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Cash Strategy is estimated to experience on average less than 0.5 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.

For further information about the risk measures for each strategy, please refer to SASS Fact Sheet 15: Choosing an investment strategy.

Defined benefit strategies

Strategic asset allocation: 51.0% liquid growth; 36% alternatives; 13% liquid defensive.

Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+5% p.a. over rolling 10 year periods.

Risk: High (Risk Band 6: from 4 to less than 6 negative annual returns estimated over any 20 year period). For further information about the risk measure for the Trustee Selection Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The Trustee Selection Strategy has been designed for a long-term investment horizon (10 plus years) and a high tolerance to market volatility.

Strategic asset allocation

At 1 July 2019
Dynamic asset 
allocation range
Liquid growth51.0%35.0% - 67.0%
Australian Equities 18.0%  
International Equities 33.0%  
Other 3.0%  
Alternatives36.0%26.0% - 46.0%
Infrastructure 12.0%  
Property 7.0%  
Alternatives - Other 17.0%  
Liquid Defensive13.0%10.0% - 29.0%
Australian Fixed Interest 3.0%  
International Fixed Interest 0.0%  
Other 6.0%  
Cash 4.0%  
Total100.0% 

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Trustee Selection Strategy is estimated to experience on average 4 to 6 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.

Strategic asset allocation: 19.0% liquid growth; 81.0% liquid defensive.

Investment objective: To achieve an investment objective of CPI+0.5% p.a. over a rolling 4 year period with a greater than 50% probability of exceeding the objective.

Risk: Low to Medium (Risk Band 3: from 1 to less than 2 negative annual return estimated over any 20 year period). For further information about the risk measure for the University Conservative Diversified Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The University Conservative Diversified Strategy has been designed for a short-term investment horizon (4 years) with little tolerance for market volatility and a preference for security.

Strategic asset allocation

At 1 July 2019Dynamic asset
allocation
Liquid growth19.0%11.0% - 27.0%
Australian Equities 8.0%  
International Equities 11.0%  
Alternatives0.0%
Liquid defensive81.0%73.0% - 89.0%
Australian Fixed Interest 4.0%  
International Fixed Interest 2.0%  
Cash 75.0%  
Total100.0% 

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the University Conservative Diversified Strategy is estimated to experience on average 1 to 2 negative annual return in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.

Strategic asset allocation: 100% liquid defensive.

Investment objective: To achieve an investment objective of cash p.a. over a rolling 3 year period with a greater than 80% probability of exceeding the objective.

Risk: Very low (Risk Band 1: less than 0.5 negative annual returns estimated over any 20 year period). For further information about the risk measure for the University Cash Strategy, please refer to the Standard Risk Measures document.

Investment time horizon: The University Cash Strategy has been designed with a short-term investment horizon of up to 3 years with no tolerance for market volatility.

Strategic asset allocation

At 1 July 2019
Liquid Growth0.00%
Alternatives0.00%
Liquid Defensive100.0%
Australian Fixed Interest 0.00%
International Fixed Interest 0.00%
Cash 100.0%
Total100.0%

Note

Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the University Cash Strategy is estimated to experience on average less than 0.5 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.