Australian Food Super has made a number of changes to further strengthen the way members’ super savings are invested. We have:
- Created a new investment option: Conservative Balanced
- Introduced a fee cap for member accounts with a balance over $250,000
- Updated the strategic asset allocation of several investment options
These changes reflect the Fund’s ongoing approach of regularly reviewing its investment strategy to help deliver positive long-term outcomes while carefully managing risk.
What’s changing?
1. A new investment option: Conservative Balanced
The Conservative Balanced option is designed for members who want some growth potential but with more stability than our standard Balanced option. It holds a higher proportion of defensive assets, such as cash and fixed interest, aiming to smooth out returns over time. It may suit members who are closer to retirement or who prefer a more cautious approach to investing their super.
If you’d like to learn more about your investment options, or you’re wondering whether your current investment choice is right for you, contact our Member Hotline on 1800 808 614. Our team can also arrange simple financial advice at no additional cost if you’d like help making an informed decision.
2. Fee cap
A cap is now in place on the percentage based component of the Fund’s administration fee. This means members will no longer pay the variable 0.07% p.a. fee on any portion of their balance above $250,000.
This is good news for members who have worked hard over the years to build their super balance.
The fixed fee of $1.70 per week continues unchanged for all members.
3 .Strategic asset allocation changes
One of the other changes is the introduction of Infrastructure as a separate asset class within the diversified investment options, including Capital Stable, the new Conservative Balanced, MySuper, Balanced and Growth.
Infrastructure investments include assets such as toll roads, airports, ports, utilities, and renewable energy projects. These types of investments can provide stable, long-term returns and often perform differently from share markets, helping diversify the portfolio.
To make room for this new allocation, the Fund has reduced its exposure to some other asset classes, including Property and Alternatives, while making some smaller adjustments to Australian and international shares and currency exposure.
Recognising Infrastructure as its own asset class gives members greater transparency about where their money is invested and reflects the increasing importance of infrastructure assets in long-term investment portfolios.
Regularly reviewing the Fund’s strategic asset allocation also helps ensure members’ retirement savings remain invested in a diversified portfolio that balances growth opportunities with risk management.
The adjustments to overseas investments and currency exposure are also designed to improve diversification while helping reduce the impact that movements in foreign exchange rates can have on investment returns.
What does it mean for members?
For most members, there is nothing you need to do.
Your investment option will continue to operate with the same long-term investment objective and risk profile. The changes are refinements to how the portfolio is invested behind the scenes rather than a change in the overall purpose of your investment option. As always, Australian Food Super will continue to review its investment strategy to help position members for the long-term retirement success a lifetime of work should provide, while managing investment risk through a well-diversified portfolio.