How should my money be invested in super?

Superannuation is like any other investment – you can control the amount of risk your investment is exposed to, by being able to choose investment option(s) to match your risk profile.

Unless you specify how you want your money invested in your super account, the fund will make the decision for you (default investment options). Your annual statement will show you what your current investment choices are.

Why do super investment options matter?

You may be able to grow your super by investing in different asset classes. Some asset classes perform better than others – in other words, they deliver higher returns. It usually comes down to your attitude to risk, and how long you’ve got until retirement.

What do I need to consider when choosing investment options?

You need to consider your investment decisions carefully. Before you select a superannuation investment option, you need to consider:

• When do I want to retire?
• How much money will I need in retirement?
• What is my attitude towards risk?
• How important is diversification to me?
• What sort of investments return will I need to achieve my goals?

These can be complex questions. We recommended you talk to a financial planner for advice.

What are my investment options at AMP?

We offer a range of super investment choices, which apply to different products. You should check the Product Disclosure Statements for each product to see what choices are available to you.

• A 'whole of working life strategy' that automatically switches your investment at particular ages. It takes a less risky approach as you get older, and reduces the need for you to continually re-assess your investment strategy.
• In the early stages of your working life, it gives you greater exposure to growth investments with potential for high returns (accepting the associated higher level of risk).
• It switches your investment at particular ages, to increase exposure to defensive investments. This gives your super savings greater stability in the years before retirement – when your account balance is more sizeable and there's less time to recover any short-term losses.
• The diagram below shows how LifeStages generally works.

Multi-manager option

• This uses a blend of fund managers to provide you with more diversification and more stable returns.
• Mercer Investment Consulting selects our fund managers.
• There are 10 investment options in Flexible Lifetime - Super that use the multi-manager approach (the Future Directions range).
• You can invest in the multi-manager option with the asset allocation that matches your investment profile (eg for a conservative investment profile you would choose the Future Directions Conservative option).

Your own investment manager mix

• This allows you to invest in up to 10 investment options at any one time, choosing your own mix of investment managers. For example:
  • Diversified investment options – invest in a number and variety of assets (eg cash, fixed interest and shares), taking the work out of mixing assets together.
  • Single sector investment options – invest mainly in one asset sector (eg international shares).
  • Diversified and single sector investment options – choose any of the options in the single sector menu, combining the options in a similar growth/defensive asset allocation to the indicative allocation shown under your profile. For example, for a conservative investor the indicative asset allocation is 30% growth and 70% defensive. You could also combine any of the diversified and single sector options in a way that produces a similar growth/defensive asset allocation to the indicative allocation under your profile.