How super investment options are built

4 November 2026

Superannuation can be invested across different types of assets such as shares, property, bonds and cash. These are called asset classes, and each one behaves differently with its own level of risk and potential return.

The way these asset classes are combined is called a strategic asset allocation. It acts like a blueprint, showing how much of the investment option is invested in each type of asset.

By setting these allocations, a super fund creates different investment options, each with its own mix of assets, risk level and potential for growth.

This article explains how strategic asset allocation, risk and return work together to shape your super investments – helping you understand how options are built and what they could mean for your future balance.

The building blocks of your super

Asset classes are the foundation of super investments. Each plays a different role in shaping how your balance grows.

Here are the asset classes included in Brighter Super’s investment options:

• Shares (also known as equities) represent ownership in companies, traded on stock exchanges such as the Australian Securities Exchange (ASX) or New York Stock Exchange (NYSE). They offer the potential for high long-term returns, but prices can rise and fall sharply in the short term.
• Private equity involves investing in private companies, aiming to increase value through an active role in monitoring and advising the company. These investments can deliver high returns but are generally high risk and illiquid.
• Property includes commercial real estate such as office buildings, warehouses and shopping centres. Property assets may be listed on a stock exchange, or owned through unlisted investment vehicles. They can generate income from rent and are expected to grow in value over the longer term.
• Infrastructure assets such as roads, airports and utilities often have long lifespans, provide stable income, and may be less volatile than shares.
• Diversifying strategies may include investments such as hedge funds, insurance-linked strategies and agriculture. They involve different types of risk and return to traditional asset classes, resulting in potentially more stable returns, and aim to provide some downside protection within a broader investment portfolio, particularly against equity or bond market volatility.
• Diversified fixed interest investments, such as government and corporate bonds, generally earn interest with lower volatility than shares, helping to provide stability and modest returns.
• Cash includes bank deposits and short-term securities. It’s generally secure and liquid, but returns are usually low and may not keep up with inflation.

By blending these building blocks, we aim to balance growth and protection so your super can build steadily over time.

Strategic asset allocations explained

Brighter Super offers two types of investment option:

• Ready-Made Multi-manager options – diversified across a mix of asset classes to spread risk and balance potential returns.
• Single asset class options – focused on one asset class only, which can be chosen individually or combined with others to build an investment strategy.

An investment option may hold a mix of asset classes in different proportions, or it may be focused on a single asset class. In both cases, this mix is known as the strategic asset allocation.

Every investment involves some level of risk and return.

Investment risk is the possibility that investment outcomes differ from expectations, including that an investment loses value or does not achieve the return needed to meet an investor’s objectives.

For simplicity, asset classes are grouped as either growth or defensive.

• Growth assets, such as shares and property, aim for higher long-term returns but are generally more volatile and carry higher risk.
• Defensive assets, such as cash and fixed interest, generally have a lower expected risk and return than growth assets, although their values and returns can still change.

Some assets, such as property, diversifying strategies and infrastructure, have features of both growth and defensive assets. This balance can give members the opportunity to grow their super in a rising market, while providing a degree of protection in poorly performing markets. 

Strategic asset allocations are included in the information for all investment options on our website. They are also listed in the Investment and Fees Guide for each account type at Product Disclosure Statements and guides.

How we measure risk and return

Brighter Super uses two measures to help members compare the potential risks and returns of different investment options:

1. Return target

   A return target is the average yearly return an investment option aims to achieve.

   Return targets can help you compare investment options on the same basis. They do not guarantee results, as markets are uncertain, but they show what each option is aiming for.

   Brighter Super’s diversified Ready-made Multi-manager options have return targets related to inflation (measured by the Consumer Price Index), except for the Secure option which uses a composite benchmark return target.

   Our single asset class options have return targets that are related to financial market benchmarks rather than inflation and are designed to outperform their relevant benchmark. The Indexed International Shares, Indexed Australian Shares and the Property options are designed to perform in line with their relevant benchmark. 

2. Standard risk measure

   The Standard Risk Measure is based on industry guidance and estimates the number of negative annual returns an investment option may experience over any 20-year period.

   There are seven risk levels, ranging from very high to very low.

   The Standard Risk Measure is not a complete assessment of investment risk. It does not indicate the size of a potential loss or the possibility that investment returns may be lower than a member needs to meet their objectives. It also does not take into account the impact of administration fees and tax on the likelihood of a negative return. 

Return targets and standard risk measures are included in the information for all investment options on our website. They are also listed in the Investment and Fees Guide for each account type at Product Disclosure Statements and guides.

Looking at the strategic asset allocation, return target and standard risk measure helps you see not just how an option is invested, but also what it is designed to achieve in terms of risk and return.

Making choices with confidence

When you choose an investment option, you are choosing its asset mix, the return target and level of risk you’re comfortable with. Each option balances growth and defensive assets differently, aiming for a different combination of risk and return.

You can also select more than one investment option and combine them to create a mix that suits your personal goals and comfort with risk. Together, asset allocation, return targets and risk levels give you a clear picture of how an option is structured and what it aims to deliver.

By understanding strategic asset allocation, you can see how an option balances growth and defensive assets, the returns it aims to achieve, and the risks that come with it. This knowledge can support more confident decisions about how super is invested to suit individual needs and goals.

Changing your investment options

Investment options can be changed at any time. This is known as investment switching.

Because super is designed to grow over the long term, it’s normal to experience short-term market ups and downs. While it may be tempting to switch options when markets fall, doing so at the wrong time can lock in losses and reduce future growth potential.

We encourage members to seek financial advice before making changes to their investment options.

Here’s how you can switch investment options:

• Online – log in to your account in Member Online, or register for access if you haven’t used it before.
• Printed form – download and complete the Investment Switch Form at forms and info sheets.

Further information

To find out more about Brighter Super investments, visit:

• Investment options – which includes fact sheets for each option.
• Asset classes
• Investment and Fees Guide and the Target Market Determination for each account type – available at Product Disclosure Statements and guides.