Trustee Choice (the default option)

Funds in this asset class are invested in the Australian money market in investments such as term deposits and securities.

Investing in Fixed income involves lending money to governments and companies through the purchase of bonds. Bonds can take a variety of forms. Generally the face value of the bond will be repaid on a set date and a fixed rate of interest is paid during the term. Over the longer term, Fixed income investments generally offer a higher rate of return than cash for a moderately higher risk.

Investing in Alternatives means investing in typically active strategies across various financial markets and securities. The returns from such investments typically have a lower correlation with returns from equity markets. In this way, these strategies can provide diversification benefits to investments in shares but can be more reliant on the skill level of the fund managers implementing these strategies. An Alternatives manager can invest globally in many different types of financial securities, such as equities, fixed income, foreign exchange, derivatives, commodities etc, according to their strategy and specialty.

Investing in Real assets involves investments in established buildings and properties, either in the retail, office or industrial sector. It can also include investments in property trusts and property companies, which is then pooled with other investors' funds to purchase large properties. The investment returns on property come from rent and changes to property values over time. Property generally has lower returns than, for example, Australian shares, and involves moderate risk.

Investing in International equity means investing in the ownership of companies based overseas. The return on investments comes from the profits of these companies through the form of dividends and share price fluctuations. Returns can also be affected by foreign currency movements. Compared with investing in Australian equity, International equities can offer a much broader range of companies and opportunities to invest in, but are also exposed to different risks. These returns can be very volatile and considered high risk in the short-term but may offer higher returns over the longer term.

Investing in Australian equity means investing in the ownership of Australian companies. The return on investments come from the profits of these companies through the form of dividends and share price fluctuations. These returns can be very volatile and considered high risk in the short-term but may offer higher returns over the longer term.