How we invest

Making a selection from our investment menu can make sure your investment strategy is a good match for your current needs and risk/return profile. But the first step is to understand what these options are, how Russell Investments manages these options, and what type of investor is best suited to invest in which option.

Diversified options

What are diversified options? 

A spectrum of options that range from low risk (and low expected return) through to high risk (and high expected return) investments. Each option includes a mix of different investment types, including shares, property, bonds, cash, and alternative assets, such as infrastructure and commodities. 

How are these options managed?

Each diversified option is managed to get the best possible level of return for a given level of risk. For example, higher risk options are managed to deliver higher long-term returns, yet from time to time, there may be years that bring negative returns. Importantly, the investment strategy for each option is managed in line with its diversification mix, so as an investor, you always know that your investment strategy will be in line with your risk appetite. 

Who is best suited to invest in these options?

Investors who know their risk/return profile. This generally comes down to your goals for retirement, your attitude to risk, and the timeframe you are investing for. Our online tools can help you understand your personal risk/return profile.

 iQ Super iQ Retirement
» Defensive » Defensive
» Diversified 50 » Diversified 50
» Blended Balanced  » Blended Balanced
» Balanced  » Balanced
» Balanced Opportunities1 » Balanced Opportunities1
» Growth » Growth
» High Growth » High Growth
» MySuper
1 The Balanced Opportunities Option is only available for iQ Super – Saver, the iQ Super – Employer section relating to Division Two and Three of CSR, Holcim and Wilmar and the iQ Super – Retained section for former CSR, Holcim and Wilmar employees. For these groups, the MySuper Option is not available.

Outcome-oriented options

What are outcome-oriented options?

Options focused on delivering an investment return target above inflation, while managing downside investment risk. As a result, these options may not experience the large gains that more growth-oriented diversified options do in strong markets, but aim to avoid negative returns. Like the diversified options, outcome-oriented options are invested across a broad range of investment types.

How are these options managed?

Unlike the diversified options, outcome-oriented options are focused on achieving return objectives, rather than matching a particular risk profile. This means the portfolio manager has more discretion to continually adjust the investment strategy (and risk profile) to achieve the target outcome.

Who is best suited to invest in these options?

Investors looking for a specific return from their investment. For instance, an outcome-oriented option may be suitable for a retiree seeking more certainty over their income payments, or an investor nearing retirement with sizeable savings to protect. Lower potential for generating high returns (say compared to a High Growth diversified option) can make these options less suitable for younger investors with decades to invest.

 iQ Super iQ Retirement
»Multi-Asset Income Strategy » Multi-Asset Income Strategy
»Multi-Asset Growth Strategy » Multi-Asset Growth Strategy

Responsible options

What are responsible options?

These options focus on investments that contribute to society and the environment positively in some way, or promote beneficial outcomes for communities.

How are these options managed?

The Global Shares Option is designed to support the management of climate change risk through decarbonisation. It also excludes companies involved in tobacco, nuclear weapons, cluster munitions, anti-personnel mines, and uranium. The Australian Shares Option avoids investments in alcohol, tobacco, gaming, uranium mining, weapon and armament manufacture, and companies that derive more than 10% of revenue from pornography.

Who is best suited to invest in these options?

Investors who prefer their super investments to reflect their core values, while still aiming to deliver competitive returns. Both options only provide exposure to a single investment type, so they may be added to a diversified or outcome-oriented option for added diversification.

 iQ Super iQ Retirement
Responsible Australian Shares Responsible Australian Shares
Responsible Global Shares Responsible Global Shares

Sector options

What are sector options?

Options providing exposure to a single investment type like shares, bonds, property, infrastructure and cash. Australian and global asset class options are also available.

How are these options managed?

Each option is actively managed by a specialist portfolio manager, aiming to outperform the relevant benchmark over the long term. Each option is carefully risk-controlled, so that returns broadly reflect what investors have come to expect from the asset class/investment type within the option.

Who is best suited to invest in these options?

Advanced investors who want to build a customised portfolio. While these options provide diversified exposure within each investment type, they are not diversified across investment types.

 iQ Super iQ Retirement
Australian Fixed Income Australian Fixed Income
Global Fixed Income - $A Hedged Global Fixed Income - $A Hedged
Australian Opportunities Australian Opportunities
Global Opportunities Global Opportunities
Global Opportunities - $A Hedged Global Opportunities - $A Hedged
Australian Cash Australian Cash
Australian Cash Enhanced Australian Cash Enhanced
Emerging Markets Emerging Markets
International Property Securities - $A Hedged International Property Securities

Third party options

What are third party options?

These options are a set of low-cost investment options, providing basic passive exposure to a target asset class.

How are these options managed?

These options are passively managed. This means they try to replicate the make-up of the target index, such as the S&P/ASX 300 for Australian Shares, or the MSCI World for Global Shares. There is no portfolio manager actively managing the holdings, or trying to outperform the benchmark index.

Who is best suited to invest in these options?

Investors who prefer low cost exposure, or do not believe that active management can add value over time for these investment types.

 iQ Super iQ Retirement
Third-Party Indexed Australian Shares Third-Party Indexed Australian Shares
Third-Party Indexed Global Shares Third-Party Indexed Global Shares
Third-Party Indexed Global Shares - $A Hedged Third-Party Indexed Global Shares - $A Hedged

Choose the right strategy

Everyone thinks a little differently about how to invest their super. Some are suited to a high-growth fund, some a more conservative option, and others need a balance between the two.

Your investment strategy can impact your balance by the time you retire, so it’s important you get it right. Your strategy should align with your personal circumstances, and suit your goals, investment timeframe, and attitude towards risk and return.

  • Take our Investor Style Quiz to find out what kind of investor you are, and what strategy might be suited to you.
  • But if you aren’t sure which option is right for you, you can take advantage of our no-cost over the phone investment advice service.2
  • On the other hand, if you’d rather let us automatically invest your money for you via the default investment option, we can do that too. 
2 To find out more, call us. The Over the Phone Advice Service is provided by Link Advice Pty Limited, ABN 36 105 811 836, AFSL No. 258145.

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