Suitability and risk
Suits members who want to invest in a specific asset class and are less comfortable with large fluctuations in the value of their investments.
Option size1
As at 31 August 2024
#Depending on circumstances, this investment option may also be suitable for a suggested timeframe of less than one year.
Objective and performance
To invest in a diversified portfolio of cash and money-market securities, including (but not limited to) at-call and term bank deposits, bank bills, negotiable certificates of deposit, notice accounts and other short-term fixed income securities out to a maximum maturity of around one year.
However, from December 2021, where your funds are invested in this option, they will be placed in an at call deposit product with National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 pursuant to an arrangement UniSuper has with National Australia Bank Limited. This option is not a deposit by you in a bank account and your balance is not guaranteed under the Australian Government bank deposit guarantee scheme.
Objective
Performance
2| Timeframe | Cash return |
|---|---|
| 1 month | 0.36 |
| 3 months | 1.07 |
| Financial year to date | 1.43 |
| 1 year | 4.33 |
| 3 years | 2.98 |
| 5 years | 1.91 |
| 7 years | 1.85 |
| 10 years | 1.88 |
Cash option performance ($)
2Objective
Performance
2| Timeframe | Cash return |
|---|---|
| 1 month | 0.42 |
| 3 months | 1.25 |
| Financial year to date | 1.67 |
| 1 year | 5.06 |
| 3 years | 3.49 |
| 5 years | 2.24 |
| 7 years | 2.20 |
| 10 years | 2.28 |
Cash option performance ($)
2Allocations
Strategic asset allocation
3| Asset class | Allocation |
|---|---|
|
Cash
|
100.0% |
- National Australia Bank - Cash
- BNP Paribas - Cash
Compare our cash rates with retail banks’ cash rates
| UniSuper | Bank |
|---|---|
| Rates for periods less than 1 year are not annualised | Rates are annualised |
| Rates are after tax | Rates are before tax |
| Rates are based on actual returns earned over the stated period in the past | Rates are forward looking |
Our rates aren’t annualised
To compare our rates with bank rates, we need to annualise our rates first. An approximate method is:
UniSuper's cash rate for the financial year to date ÷ by the number of months in which the return was earned × 12 months = annualised rate
So, if the quarterly cash return is 1.2%, the comparative approximate annualised return would be:
1.2 ÷ 3 × 12 = 4.80%
Our rates are after tax
Bank rates are before tax has been deducted. What is earned is then taxed at the individual’s marginal tax rate of, say, 30%. So if you deposit $1000 at a 5% rate with a bank, you’ll be taxed $15 out of the $50 earned over a year.
We’ve already deducted taxes and fees from our cash rates. This means what you earn is what you get.
We tax investment earnings on our Accumulation Cash option at 15%. Flexi Pension earnings are tax free.
To fairly compare our rates to bank rates, we reapply the 15% tax component from our rates. So, taking our annualised return of 4.8% after tax and dividing it by 0.85 (1-0.15=0.85) produces a comparable before-tax return of:
4.80 ÷ 0.85 = 5.65%
Our rates show actual earned returns
Our rates reflect what you earned in a previous period. Bank rates relate to a period in the future.
This means it’s hard to compare the two at any point in time. We can only do this accurately if we do it retrospectively based on our cash rate for a period and looking back at the rate the bank was paying over the same period. However, when interest rates go up, our rates will appear lower because rates were lower in the previous 12 months. Conversely, when rates go down, our rates will appear higher because rates were higher in the previous 12 months.
Things you need to know
- Size of both accumulation and pension assets.
- Past performance is not an indicator of future performance. Option returns are calculated net of investment expenses and taxes but are gross of account-based fees. Due to rounding, excess return may not equate to the difference between option return and median return. The SuperRatings data is based on the SuperRatings survey for the relevant period and does not take into account any subsequent revisions or corrections made by SuperRatings.
- The strategic asset allocation may change and may be altered by the trustee from time to time to suit prevailing market circumstances. Actual allocation will deviate from their targets, but are monitored so they are kept within a range approved by the Trustee.
- These holdings may change from time to time. The above holdings are the outcome of various strategies applied by UniSuper and by a range of investment managers taking into account a variety of considerations, many of which are specific to UniSuper and superannuation funds in general. The above lists are published for informational purposes only and are not a recommendation or endorsement of any of the companies listed, for inclusion in your personal portfolio. Before selecting companies to invest in personally, you should seek professional financial advice that takes into account your personal circumstances and investment objectives. Value includes direct holdings only and does not include exposures from indirect holdings.
- Value includes direct holdings only and does not include exposures from indirect holdings.
This information is of a general nature only and does not take into account your individual objectives, financial situation or needs. You should read the product disclosure statement and booklets relevant to your membership category, consider the appropriateness of the information having regard to your personal circumstances and consider consulting a licensed financial adviser before making an investment decision based on information contained here.