Investment risk and return

What is the investment return objective and level of risk for the MySuper Lifestage Funds?

Your Lifestage Investment Option has an objective to provide an investment return above inflation. To determine these objectives we have used the Consumer Price Index (CPI) which is a generally accepted measure of inflation. The specific investment objective for your Lifestage Investment Option changes over time and so does the level of risk.

The following table shows the investment objective (after fees and taxes) and level of risk for each Lifestage Investment Option as at 23 March 2018. The Standard Risk Measure is a way of describing the level of risk of different investment options (with 1 being the lowest and 7 the highest). It does not consider all forms of investment risk.

BT's MySuper Lifestage Funds - Investment return objectives
Lifestage Investment Option Description Investment objective
(over 10 years)
Standard Risk Measure Minimum suggested investment timeframe
1940's You have probably retired or you are very close to retirement. The focus is on maintaining the real value of your investment. If you were born before 1950 this will be your Lifestage Investment Option. CPI + 1.4% p.a. 3. Low to Medium 4 years
1950's Retirement is approaching or you have just retired. The focus is on protecting the value of your investment while still seeking some growth. CPI + 1.6% p.a. 3. Low to medium 4 years
1960's Retirement is getting closer. The focus is on achieving a balance between the potential for growth and the level of risk through a mix of growth and conservative assets. CPI + 2.5% p.a. 5. Medium to high 5 years
1970's Your savings are continuing and you have many years until retirement. Growth remains the main focus for your investment. CPI + 3.6% p.a. 6. High 7 years
1980's, 1990's & 2000's You are saving and have many years until retirement to withstand rises and falls in the value of your investment. The focus is on maximising growth. CPI + 3.8% p.a. 6. High 7 years

How is risk measured?

The level of risk, or Standard Risk Measure, for each investment fund is based on an estimate of the number of negative annual returns that may be experienced over any 20 year period as shown in the table.

Standard risk measure Estimated number of negative annual returns over any 20 year period
Risk band Risk label  
1 Very low Less than 0.5
2 Low 0.5 to less than 1
3 Low to medium 1 to less than 2
4 Medium 2 to less than 3
5 Medium to high 3 to less than 4
6 High 4 to less than 6
7 Very high 6 or greater

The Standard Risk Measure allows you to compare the level of risk of investment funds within BT Super for Life as well as other investment options available through other super funds.

The Standard Risk Measure is not a complete assessment of all forms of investment risk, for example it does not detail what the size of the negative return may be or the potential for a positive return to be less than the return you require to meet your investment objectives. It also does not take into consideration the impact of fees and tax on investment returns. You should ensure you are comfortable with the risks and potential losses associated with the investment funds you choose to invest in.

BT Funds Management Limited ABN 63 002 916 458, AFSL No. 233724, RSE No. L0001090 is the trustee and issuer of interests in BT Super for Life which is a part of Retirement Wrap ABN 39 827 542 991, RSE R1001327.

A Product Disclosure Statement (PDS) is available by logging in to your online banking. You should obtain and consider the relevant PDS before deciding whether to acquire, continue to hold or dispose of interests in the relevant product.

Westpac Life Insurance Services Limited ABN 31 003 149 157, AFSL No. 233728 is the issuer of insurance cover offered through BT Super for Life. Further information about the insurance available through BT Super for Life is included in the PDS.

The relevant Financial Services Guide (FSG) can be obtained by contacting your adviser or from the PDS downloads page.

The above information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. The information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.

Superannuation is a long-term investment. The Government has placed restrictions on when you can access your preserved benefits. The Government has set caps on the amount of money you can add to superannuation each year on a concessionally taxed basis. In addition, the Government has set a non-concessional contributions cap. For more detail, speak with a financial adviser or visit the ATO website. There may be limited circumstances where your employer is not required to accept your Choice of Superannuation fund form e.g. if you have already exercised Super Choice in the last 12 months.