Effective from 1 February 2015, State Super has implemented a number of investment administration changes to more closely align assets with the choices made by members and with the reserves held by employers for members. These changes have been determined to be in the best interests of members. The changes that have taken place include:
The previous (old) Growth Strategy which applied to both Member Investment Choice and Employer reserves has been replaced with two strategies:
- A new Growth Strategy which applies to Member Investment choice. This strategy, along with the existing Balanced, Conservative and Cash strategies will continue to apply to the investment of most member contribution assets. Specific assets are now allocated to this strategy. There are minor changes to the Strategic Asset Allocations (SAAs) of each of these strategies but the overall risk profiles and return objectives remain unchanged.
- A strategy called Trustee Selection, which applies to the investment of most employer reserve assets but excludes, for example, the employer assets associated with universities' reserves. Specific assets are also allocated to this strategy.
The new Growth and Trustee Selection strategies have very similar investment profiles to the old Growth Strategy. However, because assets are now allocated specifically to each of these strategies, the investment profile and returns of each of these strategies may diverge from each other (or from the old Growth Strategy), as changes in market conditions and to the needs of members or employers eventuate.
The two investment strategies for university employer reserves (University Diversified and University Cash) remain unchanged. Specific assets had already been allocated for the university employer reserves, and this will continue.
No increase in member fees is expected to occur when these changes take place. However, as usual, fee changes may occur over time and will be communicated to members prior to the change becoming effective.
More information
Please refer to the investment strategies section of the website for detailed information on each investment strategy.
If you have further questions related to these changes please submit them in writing to the Trustee via email at enquiries@stc.nsw.gov.au or by post to SAS Trustee Corporation, PO Box N259, Grosvenor Place, NSW 1220.