Options

Default Option

The Christian Super default investment option is called MyEthicalSuper. For more information about this option, view our MyEthicalSuper dashboard, or view the summary table below.

Investment Options

You can choose from five different investment options within Christian Super. Each option is invested in accordance with Biblical Investment Principles. Each option invests in a range of assets, broken down into asset classes.

Option Ethical High Growth MyEthicalSuper^ Ethical Balanced Ethical Stable Ethical Cash
Growth/Defensive Assets Split 100/0 73/27 50/50 34/66 0/100
Standard Risk Measure (see below) High High Medium to high Medium Very low
Suitable Time Horizon (at least) 10 years 7 years 5 years 3 years Under 3 years
Target Return over Inflation(CPI) 4% p.a. 3.5% p.a. 2.5% p.a. 2.0% p.a. Bank Rate
Asset Allocation
Australian Shares 40% 26% 17% 12% 0%
International Shares 44% 27% 17% 12% 0%
Property 6% 10% 8% 6% 0%
Growth Alternatives 10% 10% 8% 4% 0%
Defensive Alternatives 0% 12% 16% 18% 0%
Fixed Interest 0% 12% 28% 38% 0%
Ethical Cash 0% 3% 6% 10% 0%
Cash 0% 0% 0% 0% 100%
Investment fee p.a.* 0.80% 0.80% 0.80% 0.80% 0.35%

^ Formerly Ethical Growth

* Additional performance based fees may apply

 

Choosing an investment option

You may invest your balance in one option or split it between options, although you should note that the underlying investments within each asset class do not differ between options (i.e. the MyEthicalSuper option holds the same Australian Equities as the Ethical Stable option, just in a different proportion). You may switch options at any time. Investment switches are generally processed within a week of receipt.

Read our handy hints on choosing an investment option. You can also contact us for general advice on choosing an investment option.

 

Risk and Return

The more aggressive the investment option, the more likely it is to experience a negative return or a very positive return, particularly over shorter time frames. This is why it is important to make sure that your investment choice fits well with your investment horizon – the amount of time you have to invest. You should also make sure, if you are in an aggressive investment option, that you are comfortable with the more volatile returns that these options experience over shorter time periods.

While all investment carries risk, generally investments that have the potential to generate higher returns bring with them a greater level of risk. The value of such investments also tends to fluctuate more. Growth assets (such as shares and property) have been shown over long periods of time to provide higher returns than defensive assets (such as bonds and cash). This means that the more aggressive options (Ethical High Growth and MyEthicalSuper) will tend to provide better returns over the long term, but are also likely to fluctuate and experience more periods of negative returns.

 

Standard Risk Measure

The Fund has adopted the ASFA/FSC Standard Risk Measure (SRM) as a means to identify at a glance the level of risk involved in each investment option:

Standard Risk Measure
Risk Band Risk Label Estimated negative annual return years over any 20 year period
1 Very Low Less than 0.5
2 Low 0.5 to less than 1
3 Low to medium 1 to less than 2
4 Medium 2 to less than 3
5 Medium to high 3 to less than 4
6 High 4 to less than 6
7 Very high 6 or greater

 

The SRM is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period.

Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option(s).

SRM Methodology
The SRM will be based on each investment option’s Strategic Asset Allocation and long-term investment performance assumptions, and the methodology for its calculation may be changed from time to time. Currently, the SRM calculation is performed by the Fund’s Asset Consultant.

Capital Market assumptions in relation to expected returns, volatility and correlation between asset classes are proposed by the Fund’s Asset Consultant and reviewed by the Fund. It is expected that these underlying assumptions will be conservative, to allow some room for the weaknesses inherent in Mean-Variance Optimised portfolio construction.

Using these assumptions and their suite of portfolio analytics tools, the asset consultant will then develop an expected return distribution for each investment option based on its Long-Term Strategic Asset Allocation. This return distribution will provide an estimate of the probability of a negative return in any one year; which may then be extrapolated to provide an estimated frequency of negative returns in any 20-year period.
It should be noted that this calculation refers to negative nominal or absolute returns, not negative real returns in comparison to CPI.

The calculation of the SRM does not include any allowance for Administration Fees. Investment Management Fees for each option are taken into account in the calculation. No assumptions of active management alpha are included in the calculation, and no allowance is made in the SRM calculation for tax.

 


Please note that the information contained on this website is a summary and general in nature. It does not take into account any personal objectives, financial situation or specific needs of individual members. We strongly recommend that you refer to our Product Disclosure Statement (PDS) and Investment Guide for the full terms and conditions, and obtain professional financial advice to determine the appropriateness of the information, taking into account your own personal circumstances.