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: 60% liquid growth; 30% alternatives; 10% 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: 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 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 2023 | Dynamic asset allocation range | |
|---|---|---|
| Liquid growth | 60.0% | 44.0% - 76.0% |
| Australian Equities | 24.0% | |
| International Equities | 36.0% | |
| Alternatives | 30.0% | 18.0% - 42.0% |
| Property | 2.0% | |
| Alternatives - Other | 23.0% | |
| Infrastructure | 5.0% | |
| Liquid defensive | 10.0% | 1.0% - 20.0% |
| Fixed Interest | 4.0% | |
| Income | 3.0% | |
| Defensive Strategies | 0.25% | |
| Cash | 2.75% | |
| Total | 100.0% |
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 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.
For further information about the risk measures for each strategy, please refer to SASS Fact Sheet 15: Choosing an investment strategy.
Strategic asset allocation: 48.0% liquid growth 22.0% alternatives; 30.0% 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 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 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 2023 | Dynamic asset allocation range | |
|---|---|---|
| Liquid Growth | 48.0% | 32.0% - 64.0% |
| Australian Equities | 17.5% | |
| International Equities | 30.5% | |
| Alternatives | 22.0% | 10.0% - 34.0% |
| Property | 2.0% | |
| Alternatives - Other | 15.0% | |
| Infrastructure | 5.0% | |
| Liquid Defensive | 30.0% | 20.0% - 40.0% |
| Fixed Interest | 7.0% | |
| Income | 8.0% | |
| Defensive Strategies | 0.25% | |
| Cash | 14.75% | |
| Total | 100.0% |
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 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: 30.0% liquid growth; 18.0% alternatives; 52.0% 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: Medium (Risk Band 4: from 2 to less than 3 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 2023 | Dynamic asset allocation range | |
|---|---|---|
| Liquid growth | 30.0% | 14.0% - 46.0% |
| Australian equities | 10.5% | |
| International equities | 19.5% | |
| Alternatives | 18.0% | 6.0% - 30.0% |
| Property | 2.0% | |
| Alternatives - Other | 11.0% | |
| Infrastructure | 5.0% | |
| Liquid defensive | 52.0% | 42.0% - 62.0% |
| Fixed interest | 11.0% | |
| Income | 17.0% | |
| Defensive strategies | 0.25% | |
| Cash | 23.75% | |
| Total | 100.0% |
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 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: 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 2023 | |
|---|---|
| Liquid growth | 0.0% |
| Alternatives | 0.0% |
| Liquid defensive | 100.0% |
| Australian fixed interest | 0.0% |
| International fixed interest | 0.0% |
| Income | 0.0% |
| Defensive strategies | 0.0% |
| Cash | 100.0% |
| Total | 100.0% |
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: 55.0% liquid growth; 37.0% alternatives; 8.0% liquid defensive.
Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+3.7% 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 2023 | Dynamic asset allocation range | |
|---|---|---|
| Liquid growth | 55.0% | 32.0% - 67.0% |
| Australian Equities | 11.0% | |
| International Equities | 44.0% | |
| Other | 0.0% | |
| Alternatives | 37.0% | 15.0% - 49.0% |
| Property | 7.0% | |
| Alternatives - Other | 18.0% | |
| Infrastructure | 12.0% | |
| Liquid Defensive | 8.0% | 1.0% - 33.0% |
| Fixed Interest | 0.0% | |
| Income | 0.0% | |
| Defensive Strategies | 4.0% | |
| Cash | 4.0% | |
| Total | 100.0% |
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: 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 2023 | |
|---|---|
| Liquid Growth | 0.00% |
| Alternatives | 0.00% |
| Liquid Defensive | 100.0% |
| Australian Fixed Interest | 0.00% |
| International Fixed Interest | 0.00% |
| Cash | 100.0% |
| Total | 100.0% |