Investment basics

It's important to take the time to understand the basics when it comes to investing and get your head around investment risks, asset types and our investment options.

How your super is invested and why you need to know

Learning about the investment basics can help you understand your risk tolerance and manage your investment return expectations, putting you in a better position to select investments that are suited to your needs.

If you need help understanding your options, call us on 1800 692 877. You can also get advice around what investment options best suit you by speaking to one of BUSSQ's in house Financial Planners*.

_{* The cost of this advice is included in the administration fees and costs. Personal advice is provided by one of our financial planners who are Authorised Representatives of Industry Fund Services Limited (IFS) (ABN 54 007 016 195 AFSL 232514). IFS is responsible for advice given to you by its representatives.}

Get advice

Getting financial advice can help you understand your super and finances, plan for retirement and much more.

BUSSQ offers different types of advice and can help you get your head around your super.

Learn more

Investing your money

The BUSSQ Investment Committee is appointed by our Board to make recommendations about how members' money should be invested.

The Investment Committee and Board also obtain professional investment advice from our investment consultant, Frontier Advisors.

The asset allocation ranges are the minimum and maximum amount we can invest in each asset class and these ranges are set by the Board, after advice from our investment consultant.

The Board reviews these ranges on a regular basis, and sets an allocation for each diversified option, known as a strategic asset allocation (SAA). The actual asset allocation can vary for the SAA at any time based on our outlook for the economy and investment markets.

Specialist investment managers are interviewed and selected for each of the asset classes. They are selected on a management and performance basis and they are required to report regularly to the Board. The investment managers are constantly monitored by BUSSQ.

BUSSQ invests your retirement savings across eight types of investment or asset classes:

1. Shares (Australian and International):

Generally purchased through a stock exchange, when you buy a share you become part owner in the company that has issued the share. Companies issue shares to raise capital. As part owner, you are entitled to any company profits, distributed as dividends. As the value of the company rises or falls, due to performance, industry conditions and other factors, the value of your share also rises or falls.

2. Fixed Interest (or Bonds):

Are money lent to governments, semi-government bodies and corporations where interest is paid at an agreed rate for an agreed term. These investments can be held until they mature, with returns coming from the interest payments that are made. They are also commonly traded, with the price received for the investment reflecting the difference between the current interest rates and the interest rate and duration on the fixed interest investment. Fixed interest investments are generally fairly stable, however their value is affected by interest rate and currency movements.

3. Property (Australian):

Includes investments in land and buildings that can be bought, sold or leased such as shopping centres or office blocks. Returns on property investments are influenced by many factors including supply, demand and market conditions.

4. Cash:

Includes money invested in term deposits and bank bills where interest is earned on the cash invested, similar to having money in a bank account. Over the long term, cash is likely to produce the lowest return of all the main asset classes.

5. Infrastructure:

these investments comprise of assets such as airports, seaports, roads, bridges, tunnels, utilities, power stations, windfarms and natural resources such as mines.

6. Opportunistic Growth:

is a direct investment in a company which is not listed on a stock exchange. These types of investments are often made to expand or restructure the company, or for new product development.

7. Agriculture:

encompasses farming and farming-related commercial activities such as livestock and timber and involves all the steps required to send an agricultural good to market i.e. production, processing, and distribution.

8. Opportunistic Debt:

works in a similar way to fixed interest investments, however the investments are generally in private corporate loans and not government or corporate bonds.

Investments in Shares and Fixed Interest can be made in Australia or overseas. In fact, the Australian share market accounts for less than 2% of the world share markets. When investing overseas, returns can also be affected by changes in the value of the Australian dollar. These changes can enhance overseas returns (when the Australian dollar is falling) or detract from overseas returns (when the Australian dollar is rising).

Further details on how your money is invested can be found in the BUSSQ Annual Report or by visiting My investment options.