Published 24 November 2020
The choices you make for your superannuation investments today can make a difference to your future lifestyle in retirement.
Superannuation funds such as LGIAsuper offer you a choice of how you want your savings invested. We have a wide range of investment options to cater for different financial situations and goals.
If you are like most people and haven’t chosen an investment option, the money in your superannuation will automatically be invested in a default option.
There may be times in your life you want to choose a different option, and you can do this any time. This article explains investment options and what you may need to consider when choosing them.
An investment option describes how you would like your superannuation to be invested. It outlines the investment aims, types of assets being invested in, and the risk levels.
LGIAsuper has a range of investment options to choose from. We have investment options for different financial situations and goals.
Investment options consist of one or more types of assets such as shares, bonds and property, which are known as asset classes. Each option has a different level of risk, dependent on the assets that are being investing in.
For example, the allocation of assets within our MySuper Lifecycle option, which is used by most of our members, are listed below.
MySuper Lifecycle Under 75
|Asset classes||Allocation %|
|Diversified Fixed Interest||18.0|
MySuper Lifecycle 75 plus
|Asset classes||Allocation %|
|Diversified Fixed Interest||37.0|
Investment options are classified as conservative, growth or balanced.
LGIAsuper has a range of investment options to cater for everyone.
You can build your own investment strategy or choose from one of our ready-made options.
a. Ready-made options
Our Ready-made investment options are a combination of asset classes – we sometimes refer to these as diversified options.
b. Single Asset Class options
We have investment options consisting of one type of asset class. These options can be mixed and matched to build your own investment strategy.
c. Socially Responsible options
We offer two Socially Responsible (SR) investment options for members seeking investments made with environmental, social and governance factors considered when investing:
If you are choosing your own investment option, three of the most important factors to consider are:
If your timeframe is long, generally you can afford to take more risk and potentially benefit from higher investment returns. If your timeframe is shorter, you may need to reduce your risk and receive lower returns.
Investment options can be changed at any time during the financial year. This is known as investment switching. We urge members to seek financial advice before making decisions about your investment options.
As above, within each investment option is one or more asset classes. An investment option’s level of risk and expected returns is dependent on its asset class allocation.
LGIAsuper invests in the following asset classes:
Asset classes are regarded as either growth (such as shares, property and infrastructure) or defensive (such as fixed interest and cash).
Deciding on the best investment approach can be difficult. Our financial advice service* can help you plan for a better financial future.
LGIAsuper members can receive limited advice on a single topic related to superannuation, such as salary sacrificing and choosing an investment option, at no additional cost.
More comprehensive financial advice is also available, for which fees will vary depending on the type and complexity of advice.
Call us on 1800 444 396 to discuss a financial advice option that suits you best.
Further information about our investments options is available for different types of account:
Further information is also available at lgiasuper.com.au/investments.
* LGIAsuper has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS.