Super investments explained: strategic asset allocation, risk and return
1 October 2025
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 fund 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) are 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 grow value by pursuing 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. They can generate income from rent and are expected to grow in value over the longer term, offering moderate risk and return.
- Infrastructure assets such as roads, airports and utilities often have long lifespans, provide stable income, and are often 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, pay regular income with lower volatility than shares, helping to provide stability and modest returns.
- Cash includes bank deposits and short-term securities. It’s 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. Risk can be defined as the chance that your investment performs differently than expected, while return is the potential gain you receive for taking on that risk.
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, usually provide lower but steadier returns, with lower risk.
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.
The table shows the mix of growth and defensive assets in each option, giving a quick view of their risk and return profile.
| Investment option |
Proportion invested in growth and defensive assets
(as at 1 October 2025)
|
| Growth assets % |
Defensive assets % |
| MySuper |
74% |
26% |
| Ready-made Multi-manager options |
| Growth |
87.9% |
12.1% |
| Balanced |
73.5% |
26.5% |
| Conservative Balanced |
55% |
45% |
| Indexed Balanced |
75% |
25% |
| Stable |
34.5% |
65.5% |
| Secure |
13.3% |
86.7% |
| Single asset class options |
| International Shares |
100% |
0% |
| Australian Shares |
100% |
0% |
| Property |
75% |
25% |
| Diversified Fixed Interest |
0% |
100% |
| Cash |
0% |
100% |
The next table shows the full breakdown of asset classes for each investment option (as at 1 October 2025). This is the strategic asset allocation, outlining exactly how money is invested across each asset class.
| Investment option |
Strategic asset allocation (as at 1 October 2025)
|
| Australian Shares |
International Shares |
Private Equity |
Property |
Infrastructure |
Diversifying Strategies |
Diversified Fixed Interest |
Cash |
| MySuper |
24.0% |
32.5% |
4.0% |
7.0% |
11.0% |
0.0% |
16.5% |
5.0% |
| Ready-made Multi-manager options |
| Growth |
31.0% |
39.0% |
5.5% |
7.5% |
9.0% |
0.0% |
5.5% |
2.5% |
| Balanced |
24.0% |
31.0% |
5.0% |
7.5% |
10.5% |
0.0% |
17.0% |
5.0% |
| Indexed Balanced |
35.0% |
40.0% |
0.0% |
0.0% |
0.0% |
0.0% |
20.0% |
5.0% |
| Conservative Balanced |
17.5% |
23.5% |
2.0% |
7.0% |
9.0% |
0.0% |
29.0% |
12.0% |
| Stable |
9.0% |
14.0% |
1.0% |
6.5% |
7.5% |
0.0% |
45.0% |
17.0% |
| Secure |
2.0% |
3.0% |
0.0% |
5.0% |
6.0% |
0.0% |
63.0% |
21.0% |
| Single asset class options |
| International Shares |
0% |
100% |
0% |
0% |
0% |
0% |
0% |
0% |
| Australian Shares |
100% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
| Property |
0% |
0% |
0% |
100% |
0% |
0% |
0% |
0% |
| Diversified Fixed Interest |
0% |
0% |
0% |
0% |
0% |
0% |
100% |
0% |
| Cash |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
100% |
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:
a. 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 financial market benchmarks.
Our single asset class options have return targets that are related to financial market benchmarks rather than inflation.
b. Standard risk measure
The standard risk measure is an industry guide to how often an option may deliver a negative annual return over a 20-year period. There are seven risk levels, ranging from very high to very low.
This measure is a guide only. It does not show how large a loss could be, whether returns might fall short of personal goals, or the effects of fees and tax.
The table below shows the returns targets and standard risk measures for all of Brighter Super’s investment options (as at 1 October 2025)1.
| Investment option |
Return target |
Standard risk measure |
| MySuper |
3% per year above inflation over rolling 10-year periods after fees and taxes. |
High risk – negative returns expected 4.03 years over any 20-year period. |
| Ready-made Multi-manager options |
| Growth |
- Accumulation accounts: 3.5% per year above inflation over rolling 10-year periods after fees and taxes.
- Pension accounts: 4.0% per year above inflation over rolling 10-year periods after fees and taxes.
|
High risk – negative returns expected 4.49 years over any 20-year period. |
| Balanced |
- Accumulation accounts: 3.0% per year above inflation over rolling 10-year periods after fees and taxes.
- Pension accounts: 3.5% per year above inflation over rolling 10-year periods after fees and taxes.
|
Medium to high risk – negative returns expected 3.98 years over any 20-year period. |
| Conservative Balanced |
- Accumulation accounts: 2.5% per year above inflation over rolling 10-year periods after fees and taxes.
- Pension accounts: 3.0% per year above inflation over rolling 10-year periods after fees and taxes.
|
Medium to high risk – negative returns expected 3.25 years over any 20-year period. |
| Indexed Balanced |
- Accumulation accounts: 2.75% per year above inflation over rolling 10-year periods after fees and taxes.
- Pension accounts: 3.25% per year above inflation over rolling 10-year periods after fees and taxes.
|
High risk – negative returns expected 4.65 years over any 20-year period. |
| Stable |
1.5% per year above inflation over rolling 10-year periods after fees and taxes. |
Low to medium risk – negative returns expected 1.86 years over any 20-year period. |
| Secure |
To outperform the weighted average return from the MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index (16%) and the Bloomberg Barclays Global Aggregate Index (hedged to Australian Dollars) (84%) over rolling 10-year periods after investment fees but before taxes. |
Very low risk – negative returns expected 0.31 years over any 20-year period. |
| Single asset class options |
| International Shares |
To outperform the weighted average return from the MSCI All Countries World Index in $A hedged (20%) and the MSCI All Wholesale Monthly Property Fund Countries World Index in $A Index (50%) and the FTSE EPRA unhedged (80%) over rolling 5-year periods after investment fees but before taxes |
High risk – negative returns expected 5.39 years over any 20-year period. |
| Australian Shares |
To outperform the S&P/ASX 300 Accumulation Index over rolling 5-year periods after investment fees but before taxes. |
High risk – negative returns expected 5.8 years over any 20-year period. |
| Property |
To outperform the weighted average return from the MSCI/Mercer Australia Core Return target is to outperform the S&P/ASX 300 Accumulation Index over rolling 5-year periods after investment fees but before taxes. |
High risk – negative returns expected 5.04 years over any 20-year period. |
| Diversified Fixed Interest |
To outperform the weighted average return from the Bloomberg AusBond Composite Bond Index (All Maturities) (50%) and the Bloomberg Barclays Global Aggregate Index (hedged to Australian Dollars) (50%) over rolling 3-year periods after investment fees but before taxes. |
Low to medium risk – negative returns expected 1.88 years over any 20-year period. |
| Cash |
To outperform the Bloomberg AusBond Bank Bill Index over rolling 2-year periods after investment fees but before taxes. |
Very low risk – negative returns expected 0 years over any 20-year period. |
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:
Discover more on our Investment Basics webinar
If you’d like to understand more about how your super is invested, join one of our Investment Basics webinars. The next sessions are on 15 October and 26 November 2025.
Register to attend at brightersuper.com.au/resources/events.
Further information
To find out more about Brighter Super investments, visit:
- This information is current as at 1 October 2025. Investment markets are uncertain and future returns cannot be guaranteed.
Brighter Super Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for Brighter Super (ABN 23 053 121 564) (RSE R1000160) (the Fund). Brighter Super may refer to the Trustee or the Fund as the context may be. Brighter Super products are issued by the Trustee on behalf of the Fund.
You should obtain and consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decision to acquire any products. A TMD is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at brightersuper.com.au/pds-and-guides.
This article provides general advice only and does not take into account your individual objectives, financial situation or needs. As such, you should consider whether it is appropriate in light of your own objectives, financial situation and needs prior to making any decision. You should consult a licensed financial adviser if you require advice which does take into account your personal financial circumstances.
