What we invest in

The portfolio holdings shown relate to the investment options offered through Australian Retirement Trust’s Super Savings products. Visit QSuper to view portfolio holdings of the investment options offered through Australian Retirement Trust’s QSuper products.

The information on this website about investment holdings is current as at 31 December 2023 and relates to the investments held by Australian Retirement Trust Pty Ltd (ABN 88 010 720 840) as trustee of Australian Retirement Trust (ABN 60 905 115 063) at that date.

The law requires superannuation trustees to disclose information about the investment holdings that make up its portfolio as at 30 June and 31 December each year. We also value the trust our members place in us to invest their super savings on their behalf, so we believe it’s important to be transparent and make it easy to see what they're invested in.

The holdings will be updated twice a year, as at 30 June and 31 December. We aim to provide the updates within 90 days of those dates.

The format is required to be displayed in accordance with Schedule 8D of the Corporations Regulations 2001 (Cth). This should make it easier for members to compare the holdings against other superannuation funds.

No. When you invest with us, the investment options are managed by our team of investment professionals who determine the holdings to aim to achieve the investment objectives set out in the Super Savings Investment Guide.

The Lifecycle Investment Strategy is designed for members who want to generate wealth over the long term, and gradually transition to lower-risk investments as they approach age 65.

Under the Lifecycle Investment Strategy, members are invested in up to three investment pools depending on the member’s age. The three investment pools are:

• Balanced Pool
• Retirement Pool
• Cash Pool.

Members will be invested in the Balanced Pool until they reach age 55. From age 55 to age 65 each member’s investment will transition to the Retirement Pool and the Cash Pool, resulting in an allocation at age 65 of approximately 90% in the Retirement Pool and approximately 10% in the Cash Pool.

Equities are commonly referred to as shares or stocks. From time to time these may include equities held as security for financing trades undertaken by the cash asset class which is distinct from the Australian and International shares asset classes. Companies issue shares to raise capital. In exchange the investor receives part ownership in the company and is entitled to a portion of the earnings, usually paid as a dividend. As the company grows, earnings are expected to grow and the value of the shareholder’s investment is also expected to rise.

International shares represent ownership in companies that are listed on stock exchanges around the world. International shares comprise both developed markets shares and emerging markets shares. Developed market shares represent ownership in companies that are listed on stock exchanges in countries whose economies are defined as mature or developed markets, e.g. Germany, Japan or United States of America. Emerging markets shares represent ownership in companies that are listed on stock exchanges in countries whose economies are defined as growing or emerging markets, e.g. China, India or South Korea.

Unlisted equities are commonly referred to as private equity and include (but are not limited to) investments in private equity, venture capital, special situations and distressed debt strategies. The investments are typically private or unlisted companies, which offer opportunities for growth via expansion or development. These companies may end up listed on the stock exchange or bought by larger companies or other private companies.

Fixed income investments are made up of loans to borrowers such as governments, companies and other entities. The most common type of fixed income securities traded in the markets are bonds.

Bonds offer a promise to have the money originally invested returned at a maturity date. They also offer a promise to pay periodic payments of interest. Some interest payments might be at a fixed rate or they might be directly linked to inflation or to shorter-term interest rates. Issuers of fixed income securities are typically rated by international rating agencies to give buyers a guide as to the likelihood that a payment will not be made in a timely manner.

Property includes (but is not limited to) investments in office buildings, industrial sites and retail shopping centres. Property typically provides a combination of regular income payments in the form of rent and potential increases in the value of the property.

Property can be purchased directly, or indirectly via units or shares in a pooled vehicle such as a property trust, which can be listed on the share market (known as a “Real Estate Investment Trust” or “REIT”) or be an unlisted trust. Short-term changes in individual investor perceptions do not tend to influence direct property investments to the same degree as they influence REITs because REITs are traded on the share market.

Infrastructure includes (but is not limited to) investments in roads, airports, ports, utility assets, power generation and other community projects and assets. They will generally display some or all of the following characteristics: large initial capital outlays, monopolistic qualities, regulated pricing, stable income, economic growth and/or inflation linkages, long-term contracts and long investment horizon.

Alternative assets, including private equity, alternative strategies and infrastructure provide an additional source of expected returns above traditional asset classes over the long term. Typically, the returns from these types of assets move in different cycles to the traditional asset classes thus offering valuable diversification.

Cash is any type of fixed interest investment that has a very short repayment period. It includes bank bills and short-term funding investments including but not limited to bank deposits. Cash carries the lowest level of risk of short-term loss but usually earns a lower rate of return over the long term. Over the long term, net returns from cash may not keep up with inflation.

A share is a portion of ownership or ‘equity’ in a company. Shares are also sometimes referred to as stocks. Shares of publicly-listed companies can be bought and sold on a share exchange, such as the Australian Stock Exchange (ASX), and in this case are known as “Australian Shares”. The investors who own the shares in a company are known as ‘shareholders’.

Derivatives are financial contracts, set between two or more parties, that derive their value from an underlying asset, group of assets, or benchmark. Derivatives are used particularly for the purpose of managing risk and rebalancing investment options to their target asset allocations.

Our policy is to allow or instruct our investment managers to use derivatives, such as forwards, futures, options and swaps, to achieve their investment objectives.

The value of overseas investments can be impacted by currency movements.

The effects of currency movement on an investment can be reduced by ‘currency hedging’. This fixes the value of the Australian dollar relative to one or a number of foreign currencies. For more information, please refer to the Super Savings Investment Guide under the section titled ‘Currency hedging’.

The “Other” asset class covers assets that do not fit into the main asset classes, but behave similarly and share similar characteristics.

Internally managed assets are managed by the Australian Retirement Trust investment team directly. For internally managed assets, the report will display the name of the asset. For externally managed assets, we will display the investment manager appointed by our investment team to manage the asset on our behalf.

This is in accordance with section 1017BB Corporations Act 2001 (Cth) and the Corporations Regulations 2001 (Cth) and ensures that the underlying data is protected for commercial reasons.

We hold a significant allocation to alternative asset classes within our Super Savings products, particularly the key unlisted asset classes – property, infrastructure and private equity. We hold these assets because we expect they will deliver strong, long-term returns, while reducing our members' exposure to share market volatility. We can do this due to our strong, reliable cash inflows from a relatively young membership making compulsory superannuation contributions and, on average, many years away from drawing down on their retirement savings.

Alternative assets are not generally traded on public markets, so valuations are less frequent. These valuations are generally provided by investment managers who usually engage independent valuation specialists, often from the four major global accounting firms or specialist valuation firms.

Where valuers are appointed by investment managers, we provide input on the selection of the valuer and ensure their valuation method complies with the requirements of our regulator (APRA) and the relevant fair value requirements of the Australian and international accounting standards.

At least 80 per cent of our alternative assets within our Super Savings products are revalued in any given quarter. This process ensures that the daily unit price Australian Retirement Trust provides to our members is a fair and accurate reflection of the value of the assets in the investment options.