NESS Super

Investment Options

Choose how you want your money invested

NESS Super offers you a choice of flexible investment options across both the NESS TRP and NESS ABP to suit any style of investor.

NESS Pension investment options

NESS Transition to Retirement Pension (TRP) offers a choice of seven investment options. You can choose to invest in one or any combination of the seven options. From 1 July 2017, investment earnings in TRP’s will be taxed up to 15%.

NESS Account Based Pension (ABP), offers a choice of six untaxed investment options, you can choose to invest in one or any combination of the six options.

Making an investment choice

When you apply for a NESS Pension you can indicate your investment choice in the NESS Pension Application Form.

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Changing your investment choice(s)

You can change your investments selections any time by completing the NESS Pension Change My Investment Choice Form or online through MemberAccessOpens in new window .

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Understanding Risk & Return

When you choose an investment option for your NESS Pension, you are making a choice about the level of risk you can tolerate in order to generate the sort of return that you need.

This is a very personal decision and will depend on a range of factors including your anticipated investment timeframe, your other investments and your level of comfort with the possibility of negative returns.

The essential thing to understand is that risk and return go together. Investments that are riskier over the short to medium term – because they are likely to generate unstable or negative returns – are likely to generate the strongest returns over the long term.

What is your risk profile?

Knowing what sort of investor you are will help you choose the investment options that are right for you. NESS Super works closely with Link AdviceOpens in new window who can help you work out what sort of investor you are and the sorts of investments that are right for you.

NESS ABP investment options

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

To outperform CPI + 4% per annum over rolling 10 year periods (after fees, costs and tax).

Indication of level of short-term volatility in performance

High (no more than 4-6 negative annual returns over any 20 year period).

Between 80% and 100% is invested in a range of Australian and international shares, Growth Alternative Assets and property.

It may experience more short-term volatility than any other option. It’s likely to suit you if you feel comfortable accepting short-term volatile returns in order to achieve higher capital growth in the long term.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

To outperform CPI + 3.5% per annum over rolling 10 year periods (after fees, costs and tax).

Indication of level of short-term volatility in performance

Medium to High (no more than 3 to 4 negative annual returns over any 20 year period).

Between 60% and 90% is invested in a range of Australian and international shares, Growth Alternative Assets and property, with the balance in diversified fixed interest investments, Defensive Alternatives and cash.

It’s likely to suit you if you feel comfortable accepting short-term volatile returns in order to achieve higher capital growth in the long term, but don’t want to have your benefits fully invested in shares.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

To outperform CPI + 3% per annum over rolling 5 year periods (after fees, costs and tax).

Indication of level of short-term volatility in performance

Medium (no more than 2 to 3 negative annual returns over any 20 year period).

Between 50% and 80% is invested in a range of Australian and international shares, Growth Alternative Assets and property, with the balance in diversified fixed interest investments, Defensive Alternatives and cash.

It’s likely to suit you if you’re looking for a diversified investment over a broad range of asset classes in order to achieve higher capital growth in the medium term with a moderate level of risk.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

To outperform CPI + 2.5% per annum over rolling 5 year periods (after fees, costs and tax).

Indication of level of short-term volatility in performance

Low to Medium (no more than 1-2 negative annual returns over any 20 year period).

Between 30% and 60% is invested in a range of Australian and international shares, Growth Alternative Assets and property, with the balance in diversified fixed interest investments, Defensive Alternatives and cash.

It’s likely to suit you if you’re looking for moderate capital growth.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

To outperform CPI + 2% per annum over rolling 5 year periods (after fees, costs and tax).

Indication of level of short-term volatility in performance

Low (no more 0.5 to 1 negative annual returns over any 20 year period).

Between 60% and 90% is invested in a range of diversified fixed interest investments, Defensive Alternatives and cash, with the balance in Australian and international shares, Growth Alternative Assets and property.

It’s likely to suit you if you’re looking for some capital growth while placing high importance on the protecting capital.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

To perform in line with the Bloomberg Australian Bank Bill Index.

Indication of level of short-term volatility in performance

Very Low (less than 0.5 negative annual returns over any 20 year period).

100% is invested in short-dated fixed interest investments and cash.

It’s likely to suit you if you’re looking for a high level of security and are prepared to accept lower returns, after taking inflation into account.

NESS TRP investment options

*Future returns are not guaranteed and past performance is not a reliable indicator of future performance

This graph compares the return target with past returns for the NESS Super MySuper option for a representative member.

  • The green columns represent the annual net return of a representative member for each financial year in the comparison period;
  • The red line represents the 10 year moving average return target; and
  • The blue line represents the 10 year moving average net return of a representative member.

When the blue line is above the red line, then the NESS Super MySuper option’s 10 year moving average net return for the representative member has outperformed the 10 year moving average return target.

Core Strategy: NESS MySuper

This product dashboard has been prepared in accordance with prescribed standard calculations. It provides you with a snapshot of key information about NESS Super’s MySuper option which you can use to compare the option with MySuper products in other funds. Terms used in the document are defined at the end of this section.

Return

10 year average return of 6.13% as at 30 June 2018.

Return target 2018-2027

3.0% per year above inflation, after fees & taxes. Future returns cannot be guaranteed.

Level of investment risk

Medium to High - negative returns expected 3/4 out of every 20 years.

Fee’s & costs

$577 per year (for a member with a $50,000 balance).

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Represents the mean annualised estimate of the percentage rate of net return that exceeds the growth in the CPI over ten years. CPI refers to Consumer Price Index; an inflationary indicator that measures the change in the cost of a fixed basket of products and services, as released by the Australian Bureau of Statistics.

A “representative member” means a member who is fully invested in the NESS MySuper option, who does not incur any activity fees during a year and who has an account balance of $50,000 throughout that year.

The standard calculations used in this product dashboard are based on this “representative member” and do not allow, for example, for the size of individual members’ accounts, or the effect of investment earnings, contributions to accounts, insurance fees or various other matters. As a result, the returns and fees shown in the dashboard will be different from the amounts which apply to any particular member.

Returns shown in this product dashboard are calculated for the “representative member” returns are after administration fees, investment fees, taxes and other costs have been deducted. These returns are therefore lower than the investment returns and crediting rates published in NESS Super’s website and Annual Report, which allow for investment-related fees, costs and taxes only.

Represents the estimated number of years in a 20 year period where a negative net investment returns will be incurred. The “Medium to High” investment risk label means the Trustee estimates that there are likely to be between 3 and 4 years with negative annual net investment returns over any 20 year period. It is calculated in line with the Standard Risk Measure Guidance Paper for Trustees published by the Association of Superannuation Funds of Australia and the Financial Services Council. This measure of risk is not a complete assessment of all forms of investment risk. For example, it does not take in to account the impact of administration fees and tax on the likelihood of a negative return, the size of potential positive and negative returns, or whether the likely returns will meet your individual needs.

Represents the dollar value of administration and investment fees and other costs that may be payable by a representative member with a $50,000 balance in the NESS MySuper option for the year to 30 June 2016 excluding Activity fees, insurance fees, buy-sell spreads and exit fees which may also apply. Fees are not guaranteed and may change in the future. Fees in the Statement of fees and other costs are gross of any fee-related tax deductions. These tax deductions are not included in the Statement of Fees and Other Costs, so the net effect of the fees and costs may be less than the amount shown.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

CPI plus at least 1% (after fees, costs and taxes) over a rolling 3-year period.

Investment timeframe

Short to medium term.

Investment risk

Low to medium (no more than 2 negative returns over any 20-year period).

This option has a low to medium level of risk. It is a conservative investment that invests mainly in Australian and overseas fixed interest investments.

This is an investment with good security and potential for some growth.

It’s likely to suit members with a short to medium-term investment timeframe.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

In line with the UBS Australia Bank Bill Index (after fees, costs and taxes).

Investment timeframe

Short term.

Investment risk

Very low (no more than negative returns over any 20 year period).

This option has a very low level of risk. It invests exclusively in cash investments.

This is an investment option with maximum security but low potential for growth after taking into account inflation.

It’s likely to suit members with a short investment timeframe.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

CPI plus at least 2% (after fees, costs and taxes) over a rolling 5-year period.

Investment timeframe

Medium to long-term.

Investment risk

Medium to high (no more than 3 negative returns over any 20 year period).

This option has a medium to high level of risk. It invests in direct and listed property.

This is an investment that is likely to provide higher long-term returns than the Stable option but with more volatility.

It’s likely to suit members with a medium to long-term investment timeframe.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

CPI plus at least 4% (after fees, costs and taxes) over a rolling 7-year period.

Investment timeframe

Long term.

Investment risk

High (no more than 5 negative returns over any 20 year period).

This option has a high level of risk. It invests predominantly in Australian and international shares, with the balance in property and diversified alternatives.

This investment has the highest long-term return expectation and is the highest risk strategy, producing very volatile returns over the short term.

It’s likely to suit members with a long-term investment timeframe.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

CPI plus at least 4% (after fees, costs and taxes) over a rolling 7-year period.

Investment timeframe

Long term.

Investment risk

High (no more than 6 negative returns over any 20 year period).

This option has a high level of risk. It invests exclusively in Australian shares.

This investment has the highest long-term return expectation and is the highest risk strategy, producing very volatile returns over the short term.

It’s likely to suit members with a long-term investment timeframe.

Asset allocation

Note: the performance of investment options is not guaranteed. The value will rise and fall due to the performance of investment markets.

Target net investment return

CPI plus at least 4% (after fees, costs and taxes) over a rolling 7-year period.

Investment timeframe

Long term.

Investment risk

High (no more than 6 negative returns over any 20 year period).

This option has a high level of risk. It invests exclusively in overseas shares.

This investment has the highest long-term return expectation and is the highest risk strategy, producing very volatile returns over the short term.

It’s likely to suit members with a long-term investment timeframe.