Understand the basics of investing

At UniSuper, the investment choices available to you may depend on the type of account you have.

If you have an Accumulation 1, Accumulation 2, Personal Account, an accumulation component of the Defined Benefit Division (DBD) or account-based pension (such as a Flexi Pension), you have the flexibility to select from our 16 investment options. Choose from seven pre-mixed and nine sector-specific options.

Pre-mixed options are ready made investment portfolios which include a diverse range of asset classes. The allocation to each asset class varies depending on the risk profile and strategy of the option.

Sector options invest in one asset class or theme, they allow you to be more hands on in setting your strategy. These options are intended to be combined with other investment options to build a diversified portfolio.

View our investment options for more information. If you need help choosing the option/s appropriate for your personal circumstances, it’s best to seek qualified financial advice or you can talk to a UniSuper financial adviser.

Defined Benefit Division (DBD) accounts have a defined benefit component and an accumulation component.

Your defined benefit component balance is calculated using a formula rather than investment returns. As it is a formula-based entitlement, you can’t choose how your defined benefit component is invested. Instead, UniSuper invests your defined benefit contributions in a pool of assets which is used to fund the formula-based entitlements of all DBD members.

Your accumulation component contains all other types of funds, such as voluntary contributions, extra employer contributions and rollovers. You can invest your accumulation component funds in the same 16 investment options that are available through our other super products

Some asset classes which may make up your investment strategy include cash, fixed interest, property, infrastructure, shares, and private equity. Pre-mixed options may include a range of these asset classes, while sector options invest mainly in one asset class or theme.

Learn more about what our options invest in and see a full breakdown of the option holdings.

For a breakdown of how your own account balance is invested, refer to the Investments tab in your online account or mobile app.

Investing in retirement is a balancing act; it’s important to make sure that your investments can support your spending now and grow to meet your future needs. Depending on your circumstances, you may still be invested for many years, even if you’ve already started to draw down your super.

UniSuper offers a range of options through our Flexi Pension product, allowing you to invest in one or more of our 16 investment options while drawing down a regular income.^*

As everyone’s circumstances are different, it’s best to seek qualified financial advice or talk to a UniSuper financial adviser.

Time plays an important role when it comes to investing. Generally, it’s your time in the market, not your timing of the market, that gives you the greatest chance of good long-term returns.

Some people may try to time markets by predicting when they’ll go up or down and then changing their investments. This strategy can be risky, as it’s difficult to predict what markets will do and getting the timing right can be tricky.¹

Compounding returns are investment returns earned on your investment returns.

It happens when you reinvest your positive investment returns (which occurs automatically with super).

The longer you invest your super, the more time you’ve got to take advantage of compounding. The younger you are when you start saving for your retirement, the more time you’ll have to benefit.

An example: Sue and Ewen

Meet UniSuper members Sue and Ewen. They’re both 60 years old and have been regularly topping up their super with extra after-tax contributions.

For the purpose of this illustration, the modelling assumes an investment return of 8% p.a. No allowance has been made for tax or investment fees and charges. Please note that lower investment returns and/or periods of market volatility, and the inclusion of tax or investment fees and charges could change the comparison.

We’ve assumed both contributions ($2,000 each year and $5,000 each year) to be after-tax contributions. This example is for illustrative purposes only and doesn’t relate to any of UniSuper’s investment options. Figures are nominal values and haven’t been adjusted to reflect the impact of future inflation.

Sue invested less, but ended up with more

Sue invested $2,000 each year (less than $40 a week). Ewen invested $5,000 each year.
Even though Sue invested less money in total than Ewen, she has $125,000 more than Ewen.

Why? Sue had more time. Sue's 15-year head start meant that her money had more time to benefit from compounding.

Inflation is a term used to describe a rise in the cost of living (measured by the Consumer Price Index or CPI).

Over the time your super is invested, the cost of living will generally rise. While a basket of groceries in 2008 might have cost $20, it would cost nearly $30 in 2023. 

Real return = investment return − CPI

It’s important to ensure the growth rate of your investment outpaces inflation. Otherwise, while the dollar amount of your balance may increase over the years, the actual buying power of your investment might not.

So, when we talk about the ‘real return’ from an investment, we’re talking about the return over and above inflation. At a minimum, your returns should keep pace with inflation. Ideally, to make real gains from your investment, your returns need to outpace inflation. 

Our investment options aim to outperform CPI by a specific percentage (or more) each year. Exceptions to this are the Cash, Australian Bond, Australian Income and Australian Dividend Income options, which have different types of objectives.