Changes to strategic asset allocations - 24 October 2022

April 30 2024

Significant Event Notice

Every year we review the investment objectives and strategy for our Accumulation Plan, Beneficiary Account, Working Income Stream, and Retirement Income Stream products to make sure they meet our members' needs. As a result of our 2022 annual review, we will be making some changes to our strategic asset allocations (SAA) and SAA ranges. The changes are aimed at optimising member outcomes by increasing the likelihood of meeting investment option objectives. No changes are being made to the risk and return objectives for any of our investment options.

The changes are outlined in detail below and are effective from 5 December 2022 (inclusive).

Which investment options are impacted?

The SAA and/or SAA range has been revised for the following investment options:

  1. High Growth
  2. Growth
  3. Basic Growth
  4. Ethically Minded
  5. Balanced
  6. Conservative
  7. Defensive.

What are the changes?

Each asset class with an adjusted SAA and/or SAA range on and after 5 December 2022 is shown in bold in the following tables.

High Growth investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares 29.5 20-50 30.5 20-50
International shares 41.0 20-55 41.0 20-55
Private equity 0.0 0-10 0.0 0-10
Property 6.0 0-30 6.0 0-30
Infrastructure 8.0 0-30 8.0 0-30
Alternative strategies 5.5 0-15 N/A N/A
Multi-asset strategies 0.0 0-20 N/A N/A
Alternative growth* N/A N/A 5.5 0-20
Credit 4.0 0-15 4.0 0-15
Defensive fixed income 2.5 0-10 2.5 0-10
Cash 3.5 0-10 2.5 0-10

Growth investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares 21.0 10-40 21.0 10-40
International shares 22.5 10-40 22.5 10-40
Private equity 0.0 0-10 0.0 0-10
Property 7.0 0-20 7.5 0-20
Infrastructure 7.5 0-25 7.5 0-25
Alternative strategies 6.0 0-20 N/A N/A
Multi-asset strategies 0.0 0-25 N/A N/A
Alternative growth* N/A N/A 6.0 0-20
Credit 12.5 0-30 12.5 0-30
Defensive fixed income 13.5 0-20 10.0 0-20
Cash 10.0 0-20 13.0 0-20

Basic Growth investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares** 26.5 10-50 27.5 10-50
International shares** 33.0 10-50 33.0 10-50
Property 5.0 0-20 6.0 0-20
Infrastructure 6.0 0-25 7.0 0-25
Alternative strategies 1.5 0-15 N/A N/A
Multi-asset strategies 0.0 0-30 N/A N/A
Alternative growth* N/A N/A 3.0 0-20
Credit 7.5 0-25 7.5 0-25
Defensive fixed income 10.0 0-20 7.0 0-20
Cash 10.5 0-15 9.0 0-15

Ethically Minded investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares 26.0 15-50 26.0 15-50
International shares 34.0 15-50 34.0 15-50
Property 5.0 0-20 5.0 0-20
Infrastructure 0.0 0-20 0.0 0-20
Alternative strategies 15.0 0-20 N/A N/A
Multi-asset strategies 0.0 0-20 N/A N/A
Alternative growth* N/A N/A 15.0 0-40
Credit 0.0 0-20 0.0 0-20
Defensive fixed income 15.0 0-30 15.0 0-30
Cash 5.0 0-20 5.0 0-20

Balanced investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares 11.5 0-30 11.5 0-30
International shares 15.5 5-30 15.5 5-30
Private equity 0.0 0-10 0.0 0-10
Property 6.0 0-20 6.0 0-20
Infrastructure 6.5 0-25 6.5 0-25
Alternative strategies 4.5 0-15 N/A N/A
Multi-asset strategies 0.0 0-25 N/A N/A
Alternative growth* N/A N/A 4.5 0-20
Credit 11.0 0-30 11.0 0-30
Defensive fixed income 26.5 5-40 23.0 5-40
Cash 18.5 0-25 22.0 0-30

Conservative investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares 6.0 0-20 6.0 0-20
International shares 8.5 0-20 8.5 0-20
Private equity 0.0 0-5 0.0 0-5
Property 4.0 0-15 5.0 0-15
Infrastructure 4.5 0-20 4.5 0-20
Alternative strategies 3.0 0-15 N/A N/A
Multi-asset strategies 0.0 0-30 N/A N/A
Alternative growth* N/A N/A 3.0 0-15
Credit 9.0 0-25 11.0 0-25
Defensive fixed income 20.0 0-30 17.0 0-30
Cash 45.0 15-55 45.0 15-55

Defensive investment option

Asset class To 4 December 2022 From 5 December 2022
SAA (%) Ranges (%) SAA (%) Ranges (%)
Australian shares 3.0 0-15 3.0 0-15
International shares 4.0 0-15 4.0 0-15
Private equity 0.0 0-5 0.0 0-5
Property 2.0 0-10 3.0 0-10
Infrastructure 2.5 0-10 2.5 0-10
Alternative strategies 2.0 0-10 N/A N/A
Multi-asset strategies 0.0 0-25 N/A N/A
Alternative growth* N/A N/A 2.0 0-10
Credit 5.0 0-10 7.0 0-15
Defensive fixed income 28.0 0-40 25.0 0-40
Cash 53.5 30-80 53.5 30-80

What do you need to do?

You do not need to do anything as a result of these changes.

All of the above changes will come into effect on 5 December 2022. For further information about the ESSSuper Accumulation Plan, Beneficiary Account, and Income Streams, please review the relevant Product Disclosure Statement (PDS) available on the PDS and handbooks page of our website.

If you would like to change your investment option(s), please go to the Investments / Switch menu in Members Online. To log in or register for access to your account, visit the Members Online page of our website. Here you’ll find step-by-step instructions and video tutorials to help you manage your super details securely, whenever you need to.

A copy of this Significant Event Notice is available to download from your Members Online inbox.

Managing your investments

You can check your investment details and options or switch investment options at any time through Members Online. To log in or register, visit our Members Online webpage.

If you've got questions about how daily unit pricing works, you can find out more on our website on the Daily unit pricing page of our website.

Can we help?

We're here to help you learn more about how you can make your super work for you and achieve the lifestyle you want in retirement. You can discuss your options with one of our Member Education Consultants who are experts in the intricacies of your fund and can provide general advice. If you're looking for personal advice relating to your specific financial situation, our qualified Financial Advisers† are here to help.

For more information or to book an appointment for general or financial advice, please contact us on 1300 650 161 (Emergency Service members) or 1300 655 476 (State Super members) between 8:00am and 5:00pm Monday to Friday, or by email at info@esssuper.com.au

Warm regards

Duncan Winton
General Manager, Member Strategy

 

* Alternative growth is a consolidation of the Fund's existing Alternative strategies and Multi-asset strategies asset classes. Combining the two asset classes will allow the Fund to retain the existing diversification benefits, with further enhancements to investment returns and fees. Underlying investments in Alternative growth may include shares, government and corporate debt securities, foreign currencies, commodities, hedge funds and cash.

** 100% passively invested against the S&P/ASX200 Index net dividends reinvested for Australian shares and against the MSCI World ex-Australia net dividends reinvested for International shares.

† ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

The information contained in this document is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.

Investment returns cannot be guaranteed as investment markets can be volatile. As a consequence, returns can be positive or negative. Past investment performance is not a reliable indicator of future performance. Benefits in ESSSuper's Accumulation Plan, Income Streams, and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. For more information about investments please refer to the relevant PDS and incorporated Investment Guide available at esssuper.com.au/pds