Plum Super National Australia Bank Group Superannuation Fund A (Plan) - Investment Menu
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Plum Super
National Australia Bank Group
Superannuation Fund A (Plan)
Investment Menu
Preparation date Issued by the Trustee The Fund
1 October 2021 NULIS Nominees (Australia) Limited MLC Super Fund
ABN 80 008 515 633 ABN 70 732 426 024
AFSL 236465This menu gives you information about the investments available
through Plum Super.
A financial adviser can help you decide which investment options
are right for you.Contents
The information in this
document forms part of
Investing with us 4 the Plum Super - National
Australia Bank Group
Superannuation Fund A
Things to consider before you invest 6
(Plan) Product Disclosure
Statement (PDS), dated 1
Understanding your investment options 12 October 2021. Together with
the Fee Brochure, Insurance
Choosing your investment options 14 Guide, and the Claims Guide,
these documents should be
Your investment options 16 considered before making a
decision about whether to
Fees and costs for your investment options 21 invest or continue to hold the
product. They are available
Cost of product for your investment options 22 when you log in to plum.
com.au
This document has been prepared on behalf of NULIS Nominees (Australia) Limited, ABN 80 008 515 633, AFSL 236465 (NULIS)
as Trustee of the MLC Super Fund, ABN 70 732 426 024 (the Fund). NULIS is part of the group of companies comprising IOOF
Holdings Ltd ABN 49 100 103 722 and its related bodies corporate (IOOF Group).
The information in this document is general in nature and doesn’t take into account your objectives, financial situation or
individual needs. Before acting on any of this information you should consider whether it is appropriate for you. You should
consider obtaining financial advice before making any decisions based on this information.
References to ‘we’, ‘us’ or ‘our’ are references to the Trustee, unless otherwise stated.
This offer is made in Australia in accordance with Australian laws.
MLC Asset Management Services Limited, ABN 38 055 638 474, AFSL 230687 (MLC Asset Management), each referenced investment
manager and JANA Investment Advisers Pty Ltd, ABN 97 006 717 568, AFSL 230693 have given written consent to be named in
this document and to the inclusion of statements made by them. As at the date of this document, these consents have not been
withdrawn.
In some cases, information in this document has been provided to us by third parties. While it is believed the information is
accurate and reliable, the accuracy of that information is not guaranteed in any way.
Subject to super law, the final authority on any issue relating to your account is the Fund’s Trust Deed, and any applicable
participation agreement and insurance policy, which govern your rights and obligations as a member.
The information in this document may change from time to time. Any updates or changes that aren’t materially adverse will be
available at plum.com.au. You also can obtain a paper copy of these updates at no additional cost by contacting us.
An online copy of this document is available at plum.com.au
3
3Investing with us
We provide a broad range Selecting investment the day the transaction takes effect,
of investment options and options rather than the day of the request. In the
you can choose any event that the investment option
We’ve appointed JANA Investment
becomes suspended (e.g. due to
combination of these to put Advisers Pty Ltd (JANA) to advise us on
illiquidity), you will be unable to make
your investment plan into our Investment Menu. It is one of the
additional contributions, withdrawals or
action. leading investment consultants in
switches into or out of that suspended
Australia with over 30 years of
We offer multi-asset investment options investment option. As part of the
experience and $850 billion of funds
that invest across multiple asset-classes, suspension:
under advice (as at 30 June 2021). JANA
and a range of options that invest in a
is partly owned by IOOF Holdings Ltd. Any contributions or rollovers that
single asset class.
would otherwise be invested in the
The Investment Menu is regularly
We’ve appointed MLC Asset suspended investment option in
reviewed by a committee of experienced
Management to advise on and manage accordance with your investment
investment professionals.
our investment options. Our investment strategy will instead be invested in
experts, at MLC Asset Management, A number of factors are taken an alternative option, e.g. the Cash
have extensive knowledge and into consideration when choosing Fund, until you provide us with
experience in designing and managing the investment options. These may alternative instructions;
portfolios using a multi-manager include the investment objective, fees, Any insurance cover you hold may
investment approach. external research ratings and cease if there are insufficient monies
performance, as well as our ability to in your non-suspended investment
Our portfolios have different investment
efficiently administer the investment options to cover the cost of the
objectives because we know everyone
option. The selection of options issued insurance; and
has different requirements about how
by companies either wholly or You may only withdraw your funds
their money should be managed.
partially owned by the IOOF Group is in accordance with any withdrawal
Our portfolios make sophisticated done on an arm’s-length basis in line offer that we make.
investing straightforward. with our Conflicts Management Policy.
We are not responsible for losses that
Our investment experts, at MLC Asset
Investment switching delayed or suspended transactions may
Management, structure our portfolios to
You can change your investment options cause.
deliver more reliable returns in many
potential market environments. And, as any time. We do not charge a fee for you
their assessment of world markets to do this. However, buy-sell spreads may
changes, our portfolios are evolved to apply.
capture new opportunities and manage Delayed and suspended
new risks.
transactions
MLC Asset Management uses specialist
We may delay or suspend transactions,
investment managers in our portfolios.
for example where an investment
They research hundreds of investment
manager delays or suspends unit pricing,
managers from around the world and
or when there are adverse market
select the managers they believe are the
conditions.
best for our portfolios. These investment
managers may be specialist in-house We may process withdrawal and switch
managers, external managers or a requests in instalments over a period of
combination of both. time and may also suspend processing
of withdrawal and switch requests we
Importantly, we stay true to the
have received. In certain circumstances
objectives of our portfolios, so you can
we may refuse a request. Where requests
keep on track to meeting your goals.
are delayed, suspended or being paid in
instalments, the unit prices used for
transactions will be those available on
4Monitoring of frequent
switching
This product is not appropriate for
members who wish to switch their
investments frequently in the pursuit of
short-term gains.
We monitor all investment options for
abnormal transaction activity because
this sort of activity can have adverse
impacts for other members.
To maintain equity, we have the right to
deal with members who frequently
switch by:
delaying, limiting, rejecting or
applying special conditions to future
switch requests
permanently cancelling membership
rejecting applications to open new
accounts in the Fund, and/or
rejecting contributions and rollovers
to existing accounts
Withdrawals from the Fund
The transaction will generally be
processed using the unit price for the
day the Trustee receives relevant
documents and all requirements have
been met.
5
5Things to
consider before
you invest
Before you invest, there are some things investments and withdrawals by Diversify to reduce volatility
you need to consider. other investors and other risks
How much risk you're prepared to accept changes in Australian and overseas
Diversification – investing in a range of
is determined by various factors, laws, and
investments – is a sound way to reduce
including: a counterparty not meeting its
the short-term volatility of a portfolio’s
obligations eg when buying
your investment goals returns. That’s because different types
securities, the seller may not deliver
the savings you'll need to reach these of investments perform well in different
on the contract by failing to provide
goals times and circumstances. When some
the securities.
are providing good returns, others may
your age and how many years you
have to invest Volatility not be.
where your other assets are invested Periods of volatility can be unsettling and Portfolios can be diversified across
the return you may expect from your may occur regularly. You may find it different asset classes, industries,
investments, and reassuring to know that often securities and countries, as well as across
how comfortable you are with investments that produce higher returns investment managers with different
investment risk. and growth over long periods tend to be approaches.
more volatile in the short term. The more you diversify, the less impact
Investment risk
By accepting that volatility will occur, any one investment can have on your
All investments come with some risk. you’ll be better able to manage your overall returns.
Some investment options will have more reaction to short-term movements. This One of the most effective ways of
risk than others, as it depends on an will help you stay true to your long-term reducing volatility is to diversify across a
option’s investment strategy and assets. investment strategy. range of asset classes.
The value of an investment with a higher When choosing your investment, it’s
level of risk will tend to rise and fall more important to understand that: Diversification across asset classes is
often and by greater amounts than just one way of managing risk. Our
investments with lower levels of risk, ie its value and returns will vary over multi-asset portfolios diversify across
it’s more volatile. time asset classes and investment
assets with higher long-term return managers. Please refer to 'Approach
While it may seem confronting, to investing' in the 'Choosing your
potential usually have higher levels
investment risk is a normal part of investment options' section for more
of short-term risk
investing. Without it you may not get the information.
returns aren’t guaranteed and you
returns you need to reach your
may lose money
investment goals. This is known as the
future returns will differ from past A financial adviser can help you
risk/return trade-off.
returns, and clarify goals and assist with creating
Many factors influence an investment’s a financial plan which helps you
your future super savings (including
value. These include, but aren’t limited manage risk and consider issues such
contributions and returns) may not as:
to:
be enough to provide sufficiently for
how many years you have to
market sentiment your retirement.
invest
changes in inflation the savings you'll need to reach
growth and contraction in Australian your goals
and overseas economies the return you may expect from
changes in interest rates your investments, and
how comfortable you are with
defaults on loans
volatility.
company specific issues
liquidity (the ability to buy or sell
investments when you want to)
changes in the value of the Australian
dollar
6Types of assets
Asset classes are commonly grouped as defensive or growth, based on their different characteristics.
Defensive assets, such as cash and fixed income, may help provide positive returns in a portfolio when share markets are weak.
On the other hand growth assets, such as shares and property, may be included in a portfolio because of their potential to
produce higher returns than cash in the long term.
Diversified investment options are usually invested across both defensive and growth assets because their risk and return
characteristics tend to be diverse. However in some market conditions, all types of assets may move in the same direction,
delivering low or negative returns at the same time.
The main differences between defensive and growth assets are:
Defensive Growth
How they are generally used To stabilise returns. To provide long-term capital growth.
Risk and return characteristics Expected to produce lower returns, and be Expected to produce higher returns, and be
less volatile, than growth assets over the long more volatile, than defensive assets over the
term. long term.
Asset classes
Asset classes are groups of similar types of investments. Each class has its risks and benefits, and goes through its own market
cycle.
A market cycle can take a couple of years or many years as prices rise, peak, fall and stabilise. Through investing for the long
term, at least through a whole market cycle, you can improve your chance of benefiting from a period of strong returns and
growth to offset periods of weakness.
The illustration below shows indicative returns and volatility for the main asset classes over a whole market cycle. However,
each market cycle is different, so unfortunately it isn’t possible to accurately predict asset class returns or their volatility. Depending
on the conditions at the time, actual returns could be significantly different from those shown.
Higher
Indicative returns and volatility over a market cycle
Private equity
Shares
Indicative returns
Property
Infrastructure
Alternatives
Fixed income
Cash
Lower Higher
Indicative volatility
Source: MLC Asset Management
7
7Things to
consider before
you invest
Here are the main asset class risks and rise, fixed income securities’ values Because alternatives are diverse, they
benefits. tend to fall and when interest rates may be included in a portfolio for
fall, values can rise. When interest their defensive or growth
Cash
rates and interest income are low or characteristics.
Cash is generally a low risk investment. negative, even small rises in interest Alternative investments are usually
Things to consider: rates may lead to falling market included in portfolios to increase
values and losses. diversification and provide returns
Cash is often included in a portfolio
Duration is a common measure of an that aren’t strongly linked with the
to meet liquidity needs and stabilise
investment’s sensitivity to changes in performance of mainstream assets.
returns.
interest rates. To illustrate, if interest Investment managers include
The return is typically all income and
rates rise sharply by 1%, and a fixed alternative investments in a portfolio
is referred to as interest or yield.
income fund has a duration of three because they generally expect the
Cash is usually the least volatile type years, the fund would likely lose return and diversification benefits of
of investment. It also tends to have approximately 3% of its value. The alternative investments to outweigh
the lowest return over a market cycle. longer the duration of a fixed income the higher costs often associated with
The value of an investment in high investment, the more its value will be them.
quality cash securities tends not to impacted by rising or falling interest Some alternative strategies are
change. However, in extreme market rates, and the greater its interest rate managed to deliver a targeted
environments cash interest rates or risk. outcome. For example, real return
yields could become negative, Market values of fixed income strategies aim to produce returns
resulting in a gradual decline in the securities may rise or fall due to exceeding increases in the costs of
value of your investment over time. changes in perceptions of the living (ie inflation).
Many cash funds invest in fixed business or government issuing the For some alternatives, such as
income securities that have a very securities being able to meet their hedge funds, derivatives may be
short term until maturity. interest and repayment obligations. used extensively and it can be less
Fixed income (including term This is known as default risk or credit obvious which assets you’re investing
deposits) risk. Issuers with higher credit quality in compared to other asset classes.
are considered investment grade and Some alternative investments
When investing in fixed income you’re
have a lower credit risk than issuers are illiquid, which makes them
effectively lending money to businesses
below investment grade. Fixed difficult to buy or sell.
or governments. Bonds are a common
income securities with higher credit Because most alternative investments
form of fixed income security. Fixed
risk are referred to as credit or high aren’t listed on an exchange,
income is also known as fixed interest.
yield. Higher credit risk securities determining their value for a fund’s
Things to consider: generally have higher potential unit price can be difficult and may
Fixed income securities are usually returns (yields) to compensate involve a considerable time lag.
included in a portfolio for their investors for their higher risk.
Alternatives invested outside
relatively stable return characteristics. There are different types of fixed Australia may expose your portfolio
Returns typically comprise interest income securities and these will have to movements in exchange rates.
and changes in the market value of different returns and volatility.
the fixed income security. While Investing in fixed income securities
income from fixed income securities outside Australia may expose your
usually stabilises returns, falls in their portfolio to movements in exchange
market value may result in a loss on rates.
your investment. Market values may Alternatives
fall due to concern about defaults on
These are a very diverse group of assets.
loans or an increase in interest rates.
Some examples may include hedge
Values of fixed income securities tend
funds, real return strategies, and gold.
to move in opposite directions to
interest rates. So when interest rates Things to consider:
8
8Infrastructure Unlisted infrastructure is less liquid Unlisted property is illiquid which
Infrastructure businesses own, operate, which makes it more difficult for an makes it more difficult for an
and maintain a diverse range of investment manager to buy or sell. investment manager to buy or sell.
infrastructure assets such as toll roads, Investing outside Australia may Investing outside Australia may
rail facilities, telecommunications expose your portfolio to movements expose your portfolio to movements
networks, and airports. Access to these in exchange rates. in exchange rates.
businesses may be through companies Property Australian shares
or securities listed on a securities
Access to property may be through trusts This asset class consists of investments
exchange, through unlisted trusts, or
listed on a securities exchange (known in companies listed on the Australian
direct ownership.
as listed property securities, Real Estate Securities Exchange (and other regulated
Things to consider: Investment Trusts, or REITs), unlisted exchanges). Shares are also known as
property trusts, or direct ownership. equities.
Infrastructure is usually included in a
Investments may include retail,
portfolio for its growth and defensive Things to consider:
commercial, industrial and residential
characteristics.
properties in Australia and around the Australian shares can be volatile and
As many infrastructure assets are
world. are usually included in a portfolio for
often highly regulated monopolies,
their growth characteristics.
their revenue streams tend to be Things to consider:
The Australian share market is less
more regular and stable than other
Property is usually included in a diversified than the global market
growth assets.
portfolio for its growth and defensive because Australia is currently
Returns typically comprise income as characteristics. dominated by a few industries such
well as changes in the value of the
Returns typically comprise income as Financials and Resources.
assets through time.
(such as rental or REIT income) and Returns usually comprise dividend
Returns are driven by many factors changes in value. income and changes in share prices.
including the economic environment
Returns are driven by many factors Dividends may have the benefit of tax
in various countries.
including the economic environment credits attached to them (known as
As a result of differences in valuation in various countries. franking or imputation credits).
frequency, listed infrastructure
Returns from property can be volatile. Returns are driven by many factors
securities’ returns may appear more
Because listed property securities are including the performance of the
volatile than unlisted infrastructure.
listed on an exchange, their prices Australian economy.
Listed infrastructure securities are
constantly reflect the market’s Companies listed on the Australian
listed on an exchange, so their prices
changing view of REIT values. share market can be grouped as
constantly reflect the market’s
Unlisted property values are more small, medium and large
changing view of their values, while
difficult to determine and usually capitalisation (cap) based on factors
unlisted infrastructure asset
involve a considerable time lag. As a including the total market value of
valuations are typically periodic and
result of these differences in their listed shares and liquidity.
regular.
valuation frequency, listed property Investors in small cap companies
Investments in listed infrastructure securities’ returns may be more generally experience greater price
securities generally provide investors volatile than unlisted property. volatility than shares in large cap
greater diversification across
Investments in listed property companies because small cap
countries, sectors and businesses
securities generally provide investors companies trade less frequently and
than investments that aren’t listed.
greater diversification across in lower volumes. They may also
The global infrastructure market countries, sectors, properties, and underperform large cap companies
offers more diversification than the property-related companies than for many years.
Australian market. investments that aren’t listed. And
the global listed property securities
market is even more diversified than
the Australian market.
9
9Things to
consider before
you invest
Global shares Private equity Active management
Global shares consist of investments in When investing in private equity you're Active managers select investments they
companies listed on securities exchanges effectively owning shares in believe, based on research, will perform
around the world. privately-owned businesses that aren't better than a market benchmark over the
listed on exchanges. long term.
Things to consider:
Things to consider: They buy or sell investments when their
Global shares can be volatile and are
market outlook alters or investment
usually included in a portfolio for Private equity is usually included in a
insights change.
their growth characteristics. portfolio for its growth
The number of potential investments characteristics. The degree of active management affects
is far greater than in Australian Returns are driven by many factors returns. Less active managers take small
shares. including the economic environment positions away from the market
Returns usually comprise dividend in different countries. benchmark and more active managers
income and changes in share prices. Private equity can be volatile. take larger positions. Generally, the
larger an investment manager's
Returns are driven by many factors Private equity may be included in a
positions, the more their returns will
including the economic environment portfolio to provide higher returns
differ from the benchmark.
in various countries. than listed share markets in the long
When you invest globally, you’re less run, and to increase diversification. Active managers have different
exposed to the risks associated with Private equity is illiquid which makes investment styles that also affect their
investing in just one economy. it difficult to buy or sell. returns. Some common investment styles
Investing outside Australia means To access private equity you generally are:
you’re exposed to movements in need to invest in a managed fund Bottom-up – focuses on forecasting
exchange rates. that invests in private equity. returns for individual companies,
Because private equity isn't listed on rather than the market as a whole.
an exchange, determining its value Top-down – focuses on forecasting
for a fund’s unit price can be difficult broad macroeconomic trends and
and may involve a considerable time their effect on the market, rather
lag. than returns for individual
Investment approaches companies.
Growth – focuses on companies they
Investment managers have different
expect will have strong earnings
approaches to selecting investments,
growth.
which invariably results in different
Value – focuses on companies they
returns. No single investment approach
believe are undervalued (their price
is guaranteed to outperform all others
doesn’t reflect earning potential).
in all market conditions.
Income – focuses on generating a
There are generally two broad regular income stream through
approaches: passive and active selecting companies, trusts and other
management. securities they believe will deliver
Passive management income, or through using derivatives
and other strategies.
Passive, or index, managers choose
Core – aims to produce competitive
investments to form a portfolio which
returns in all periods.
will deliver a return that closely tracks a
market benchmark (or index). Passive
managers tend to have lower costs
because they don’t require extensive
resources to select investments.
10
10Responsible investing from time to time, be a small level of Further information on our Derivatives
Environmental, social, governance (ESG), unintended tobacco-related exposure. Policy is available at plum.com.au/
and ethical factors impact the derivatives-policy
The investment options aren’t promoted
sustainability of companies and as socially responsible or ethical Currency management
governments and therefore influence the investments.
If an investment manager invests in
returns from investing. Incorporating ESG
and ethical considerations into
Investment techniques assets in other countries, its returns in
Australian dollars will be affected by
investment decisions is known as Our investment experts and investment
movements in exchange rates (as well as
responsible investing. managers may use different investment
changes in the value of the assets).
techniques that can change the value of
Examples of ESG and ethical factors are:
an investment. A manager of international assets may
Environmental - climate change, choose to protect Australian investors
Some of the main investment techniques
waste and pollution, resource against movements in foreign currency.
are explained below.
depletion. This is known as ‘hedging’. Alternatively,
Social and labour standards - working Derivatives the manager may choose to keep the
conditions, employee relations and Derivatives may be used in any of the assets exposed to foreign currency
diversity, health and safety. investment options. movements, or ‘unhedged’.
Governance - executive pay, bribery Returns from exposure to foreign
Derivatives are contracts that have a
and corruption, tax strategy. currency can increase diversification in
value derived from another source such
Ethical considerations - other factors as an asset, market index or interest rate. a portfolio.
that could be detrimental to the There are many types of derivatives Short selling
broader community. including swaps, options and futures.
If short selling could cause a meaningful
We don’t (as Trustee) take into account They are a common tool used to manage
change in an investment option's value,
labour standards, environmental, social risk or improve returns.
we’ve made a note of it in the investment
and ethical considerations for the Some derivatives allow investment option's profile.
purposes of selecting, retaining or managers to earn large returns from
realising investments. Short selling is used by an investment
small movements in the underlying
manager when it has a view that an
How responsible investing applies to the asset’s price. However, they can lose
asset’s price will fall. The manager
investment options available to you, is large amounts if the price movement in
borrows the asset from a lender, usually
outlined below. the underlying asset is unfavourable.
a broker, and sells it with the intention
Investment management decisions for Risks particular to derivatives include the of buying it back at a lower price. If all
the investment options are made by our risk that the value of a derivative may goes to plan, a profit is made. The key
investment experts at MLC Asset not move in line with the underlying risk of short selling is that, if the price of
Management, and the investment asset, the risk that counterparties to the the asset increases, the loss could be
managers they select. derivative may not be able to meet significant.
payment obligations and the risk that a
MLC Asset Management expects active
particular derivative may be difficult or
investment managers to consider
costly to trade.
material effects any factors may have on
investment returns, including ESG and Our Derivatives Policy permits the use of
ethical factors. MLC Asset Management derivatives where consistent with an
and the investment managers investment option’s objective, risk
also engage with companies, providing profile, disclosure and governing
an opportunity to enhance and protect documents, legislative and regulatory
the long-term value of investments. requirements. They may be used for:
We don’t intend for the investment hedging
options to invest in tobacco efficient portfolio management, and
manufacturing companies. There may, investment return generation.
11
11Understanding
your investment options
The information below explains terms used in the profiles for each investment option in the Investment Menu.
Terms Explanation
Investment objective Describes what the investment option aims to achieve over a certain timeframe. Most investment
options aim to produce returns that are comparable to a benchmark.
The investment objective outlines whether returns used to judge an investment option’s success
should have fees and tax included.
Investment objectives may consider fees and tax in the following ways:
After investment fees and tax (or 'after fees and tax') means that a number of items have been
deducted when calculating the performance against an investment objective. These may include
investment fees and costs, transaction costs and tax on investment earnings. Normally, other
costs such as administration fees and costs, and other taxes haven't been deducted.
Before fees and tax means that we haven't deducted investment fees or tax on investment
earnings when calculating the performance against an investment objective. However, some
of the more variable costs have been deducted, such as performance fees, investment costs
and transaction costs.
More information on fees and tax, and how they're deducted, is available from sections 6 and 7
of the PDS.
Benchmark Benchmarks are usually market indices that are publicly available. Shares are often benchmarked
against a share market index and fixed income against a fixed income market index. Other
benchmarks can be based on particular industries (eg mining), company size (eg small caps) or the
wider market (eg S&P/ASX 200 or the MSCI World Index). Benchmarks for multi-asset portfolios
may be:
made up of a combination of market indices weighted according to the asset allocation
(commonly known as composite benchmarks), or
a single measure, such as inflation. A common index of inflation, which is the rise in the cost
of living, is the Consumer Price Index (CPI).
When comparing returns to a benchmark you should consider:
whether the investment option’s return is calculated before or after fees and tax are deducted
the period over which the return should be measured, and
that an investment option is unlikely to achieve its objective in all market environments.
How the investment Describes how the investment option is managed.
option is managed
The investment option Suggests why you may be interested in investing in this particular investment option. Your own
may be suited to you if... personal objectives and circumstances will also affect your decision.
Minimum suggested Investment managers suggest minimum timeframes for each investment option. Investing for the
time to invest minimum suggested time or longer improves your chances of achieving a positive return. However,
investing for the minimum time doesn’t guarantee a positive return outcome because every market
cycle is different. Your personal circumstances should determine how long you hold an investment.
12Terms Explanation
Asset allocation Asset allocations are displayed in different ways, reflecting how the investment option is managed:
Strategic asset allocations (also known as benchmark or long-term asset allocations) provide
an indication of the proportion of an investment option invested in each asset class.
Ranges indicate the minimum and maximum that may be allocated to an asset class.
Actual asset allocations aren't shown in this investment menu as they constantly change due to
movements in asset values, and activities such as buying and selling of assets by investment
managers. As a result, actual asset allocations can move above and below the strategic asset
allocation. While usually remaining within any ranges provided, actual asset allocations may
temporarily move outside the ranges due to movements in asset values.
Recent actual asset allocations are available by logging in to plum.com.au
Strategic asset allocations and ranges may change from time-to-time. We'll notify you of any material
updates.
Standard Risk Measure We include the Standard Risk Measure (SRM) to help you compare investment risk across the
investment options offered. The SRM is based on industry guidance and is the estimated number
of negative annual returns over any 20 year period. The SRM is not a complete assessment of
investment risk, for instance it doesn't:
detail the size a negative return could be or the potential for a positive return to be less than
a member requires to meet their objectives
capture the risk of the investment manager not meeting its investment objective, or
take into account the impact of administration fees and tax, which would increase the chance
of a negative return.
Members should still ensure they are comfortable with the risks and potential losses associated
with their chosen investment. For information on how the SRM is calculated, go to plum.com.au/
srm
Risk Estimated number of negative annual returns in any
Risk label
band 20 year period
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
13
13Choosing your
investment options
NAB Staff MySuper Sector specific options You should carefully consider the
NAB Staff MySuper is an actively There is a range of single-sector risks of investing your entire account
managed multi-asset investment option investment options available. balance in a single-sector investment
designed to meet the needs of default Single-sector investment options cater option and whether this represents
adequate diversification.
members of the Fund. NAB Staff MySuper for people looking for an asset class
For more information, refer to the
is broadly diversified across asset classes, solution. 'Diversify to reduce volatility and
across investment managers and within other risks' section of this
We also offer the Cash Option which
asset classes. Investment Menu.
invests in deposits with banks and other
If you don’t make a choice, your super comparable securities.
money will go into NAB Staff MySuper. You should have some understanding of
Or, you can choose an investment option investments, including the difference
from one of the following ‘options’ between the main asset classes before
which are designed to suit different selecting an investment option in this
investor knowledge levels and desire for path.
involvement.
Diversified options
There is a range of actively managed
diversified investment options, so you
can select an expected risk and return
profile to meet your needs.
At the lower end of the risk and return
potential is ‘Capital Stable’ which invests
mainly in defensive assets such as fixed
interest and cash. At the higher end of
the risk and return potential is ‘High
Growth’, which invests mainly in growth
assets such as shares.
14Approach to investing • Diversification matters 3. Ongoing review
For over 35 years our investment experts Asset classes perform differently in To make sure our portfolios are working
have been designing portfolios using a different market conditions. hard for investors, our investment
multi-manager approach, to help experts continuously review and actively
Investing in many asset classes helps
investors achieve their goals. manage them.
smooth out the overall portfolios'
The four key aspects of this investment returns, as asset class ups and downs can This includes adjusting the asset
approach are: offset one another. allocation, investment strategies and
managers.
1. Portfolio design 2. Managing the portfolio
This may be because our investment
Our multi-asset portfolios focus on what Our portfolios have different investment
experts' assessment of the future market
affects investor outcomes the most — objectives. That’s why our investment
environment has altered or because
asset allocation. experts select a different mix of assets
they've found new ways to balance risk
and investment managers for each.
Each asset class has its own return and and return in the portfolios.
risk characteristics. Money is allocated The investment managers may be
specialist in-house managers, external 4. Portfolio implementation
between asset classes based on the
following beliefs: managers or a combination of both. We deliver better returns by avoiding
unnecessary costs. Our investment
• Risk can’t be avoided, but can be Our investment experts research
experts help us do this by carefully
managed hundreds of investment managers from
managing cash flows, tax and changes
around the world and select the
To navigate our portfolios through in our portfolios.
managers they believe are the best for
different environments, our investment
our portfolios.
experts consider how economic and
market conditions might unfold. The They are then combined in our portfolios
insights from this analysis are used to so they complement each other.
work out the combination of asset This multi-manager approach helps to
classes that they believe will best achieve reduce risk and deliver more consistent
a portfolio’s objective. returns.
This helps prepare our portfolios for You can find out about the investment
future market ups and downs. managers by logging in to plum.com.au
• Returns and risks vary through time
Analysis of how economic and market
conditions might develop shows our
investment experts how the potential
returns and risks of each asset class could
change over the next three to seven
years.
With this information, our portfolios’
asset allocations are adjusted to improve
their return potential or reduce their risk.
15
15Your investment
options
NAB Staff MySuper
Investment objective To outperform inflation, measured by the Consumer Price Index, plus 3% pa, after investment
fees and taxes, over rolling 10 year periods.
Benchmark A combination of market indices, weighted according to the strategic asset allocation.
How the investment option is Aims to invest proportionately more in growth assets than defensive assets to achieve
managed medium-to-high long-term returns, with moderate to high volatility.
The investment option may be you want higher returns over the longer term, and
suited to you if... you understand and accept there can be moderate to large fluctuations in the value of
your investment.
Minimum suggested time to invest 6 years
Asset allocation Asset class Strategic asset Ranges
allocation
Cash 7% 0-30%
Fixed income - diversified 8% 0-20%
Fixed income - credit 11% 5-25%
Alternatives and other 4% 0-15%
Infrastructure 6% 0-15%
Property 6% 0-15%
Global shares 28% 15-45%
Australian shares 25% 10-40%
Private equity 5% 0-15%
Defensive assets 24% 10-35%
Growth assets 76% 65-90%
Standard Risk Measure High (estimate of 4 to 6 negative annual returns in any 20 year period)
16Diversified options
Capital Stable
Investment objective To outperform inflation, measured by the Consumer Price Index, plus 1.5% pa, after investment
fees and taxes, over rolling 5 year periods.
Benchmark A combination of market indices, weighted according to the strategic asset allocation.
How the investment option This portfolio is designed to provide investors with a diversified portfolio that is weighted
is managed towards the traditionally more stable asset classes of cash and fixed income.
The investment option may you want to invest in an actively managed portfolio with a bias to defensive assets, with
be suited to you if... some exposure to growth assets, and
preserving your capital is an important but not overriding concern.
Minimum suggested time to 3 years
invest
BACK
Asset allocation Asset class Strategic asset Ranges
allocation
Cash 16% 0-30%
Fixed income - diversified 38% 25-55%
Fixed income - credit 14% 5-25%
Alternatives and other 2% 0-15%
Infrastructure 4% 0-15%
Property 4% 0-15%
Global shares 11% 0-20%
Australian shares 10% 0-20%
Private equity 1% 0-15%
Defensive assets 64% 50-80%
Growth assets 36% 20-50%
Standard Risk Measure Medium (estimate of 2 to 3 negative annual returns in any 20 year period)
Balanced
Investment objective To outperform inflation, measured by the Consumer Price Index, plus 2.25% pa, after investment
fees and taxes, over rolling 7 year periods.
Benchmark A combination of market indices, weighted according to the strategic asset allocation.
How the investment option is This portfolio is designed to provide investors with a diversified portfolio that is approximately
managed equally mixed between the traditionally more stable asset classes of cash and fixed income and
those assets which have traditionally provided higher levels of overall return, namely property
and shares.
The investment option may you want to invest in an approximately equal mix of defensive and growth assets, and
be suited to you if... you want a portfolio with bias to long-term capital growth potential and can tolerate
moderate changes in value.
Minimum suggested time to 5 years
invest
Asset allocation Asset class Strategic asset Ranges
allocation
Cash 12% 0-30%
Fixed income - diversified 24% 5-45%
Fixed income - credit 11% 5-15%
Alternatives and other 3% 0-15%
Infrastructure 5% 0-15%
Property 5% 0-15%
Global shares 19% 5-35%
Australian shares 17% 5-35%
Private equity 4% 0-15%
Defensive assets 45% 30-60%
Growth assets 55% 40-70%
Standard Risk Measure Medium to high (estimate of 3 to 4 negative annual returns in any 20 year period)
17Diversified options
Growth
Investment objective To outperform inflation, measured by the Consumer Price Index, plus 3% pa, after investment
fees and taxes, over rolling 10 year periods.
Benchmark A combination of market indices, weighted according to the strategic asset allocation.
How the investment option is The portfolio is designed to provide investors with a diversified portfolio that is weighted
managed towards asset classes which have traditionally provided a higher level of overall return, namely
property and shares.
The investment option may you want to invest with a strong bias to growth assets, and
be suited to you if... you want a portfolio with a strong bias to long-term capital growth potential and can tolerate
moderate to large changes in value.
Minimum suggested time to 6 years
invest
Asset allocation Asset class Strategic asset Ranges
allocation
Cash 7% 0-30%
Fixed income - diversified 8% 0-20%
Fixed income - credit 11% 5-25%
Alternatives and other 4% 0-15%
Infrastructure 6% 0-15%
Property 6% 0-15%
Global shares 28% 15-45%
Australian shares 25% 10-40%
Private equity 5% 0-15%
Defensive assets 24% 10-35%
Growth assets 76% 65-90%
Standard Risk Measure High (estimate of 4 to 6 negative annual returns in any 20 year period)
High Growth
Investment objective To outperform inflation, measured by the Consumer Price Index, plus 4% pa, after investment
fees and taxes, over rolling 10 year periods.
Benchmark A combination of market indices, weighted according to the strategic asset allocation.
How the investment option is The portfolio is designed to provide investors with long-term growth through a diversified
managed property and share portfolio.
The investment option may you want to invest with a strong bias to growth assets, and
be suited to you if... you want a portfolio with a strong bias towards long-term capital growth potential and can
tolerate large changes in value.
Minimum suggested time to 7 years
invest
Asset allocation Asset class Strategic asset Ranges
allocation
Cash 2% 0-30%
Fixed income - diversified 0% 0-10%
Fixed income - credit 0% 0-10%
Alternatives and other 3% 0-15%
Infrastructure 3% 0-15%
Property 5% 0-15%
Global shares 41% 25-55%
Australian shares 40% 25-55%
Private equity 6% 0-15%
Defensive assets 5% 0-20%
Growth assets 95% 80-100%
Standard Risk Measure High (estimate of 4 to 6 negative annual returns in any 20 year period)
18
18Sector-specific options
Cash Plus
Investment objective To outperform the Benchmark, before fees and taxes, over rolling 1 year periods.
Benchmark Bloomberg AusBond Bank Bill Index
How the investment option The fund is actively managed and focuses on investing in securities with:
is managed high credit ratings, and
low sensitivity to changes in interest rates (eg securities with floating rather than fixed
interest rates, and with maturity terms of less than one year).
In normal market conditions these securities are liquid, but in adverse market environments
they may be less liquid and have more price volatility, which could potentially reduce the value
of your investment.
The investment option may you want to invest in an actively managed low risk portfolio that aims to provide higher
be suited to you if... returns than standard cash options, and
you’re willing to accept the fund’s risks are higher than standard cash options.
Minimum suggested time to 6 months
invest
Asset allocation Asset class Strategic asset allocation
Cash and fixed income 100%
Standard Risk Measure Very low (estimate of less than 1 negative annual return in any 20 year period)
Fixed Interest
Investment objective To outperform the Reserve Bank of Australia Cash Rate by 1% pa, after fees and taxes, over
rolling 10 year periods.
Benchmark 50% Bloomberg Ausbond Composite Bond (All Maturities) Index
50% Bloomberg Barclays Global Aggregate Total Return Index (Hedged into Australian dollars)
How the investment option The option is diversified across different types of fixed income securities in Australia and around
is managed the world. The securities are predominantly investment grade and typically longer dated.
Duration, a measure of the option's sensitivity to changes in interest rates, is normally in the
range of 3 to 7 years. Foreign currency exposures will be substantially hedged to the Australian
dollar. As a result of capital restructures of bond issuers, the option may have an incidental
exposure to shares from time to time.
The investment option may you want to invest in a fixed income fund that’s actively managed and diversified across
be suited to you if... investment managers, types of fixed income, countries, and securities.
Minimum suggested time to 3 years
invest
Asset allocation Asset class Strategic asset allocation
Australian fixed income 50%
Global fixed income 50%
Standard Risk Measure Low to medium (estimate of 1 to 2 negative annual returns in any 20 year period)
19Sector-specific options
Australian Shares
Investment objective To outperform the Benchmark, before fees and taxes, over rolling 5 year periods.
Benchmark S&P/ASX 300 Total Return Index
How the investment option The option invests primarily in companies listed (or expected to be listed) on the Australian
is managed Securities Exchange (and other regulated exchanges), and is typically diversified across major
listed industry groups. The option may have a small exposure to companies listed outside of
Australia from time to time.
The investment option may you want to invest in an actively managed Australian share fund that’s diversified across
be suited to you if... investment managers, industries and companies.
Minimum suggested time to 7 years
invest
Asset allocation Asset class Strategic asset allocation
Australian shares 100%
Standard Risk Measure Very high (estimate of 6 or more negative annual returns in any 20 year period)
Overseas Shares
Investment objective To outperform the Benchmark, before fees and taxes, over rolling 5 year periods.
Benchmark 75% MSCI All Country World Net Index ($A Unhedged) and 25% MSCI All Country World Net
Index ($A Hedged)
How the investment option The option invests primarily in companies listed (or expected to be listed) on share markets
is managed anywhere around the world, and is typically diversified across major listed industry groups.
Foreign currency exposures will be partially hedged to the Australian dollar.
The investment option may you want to invest in an actively managed global share portfolio that's diversified across
be suited to you if... investment managers, countries (developed and emerging), industries and companies, and
you're comfortable having some foreign currency exposure.
Minimum suggested time to 7 years
invest
Asset allocation Asset class Strategic asset allocation
Global shares 75%
Global shares (hedged) 25%
Standard Risk Measure Very high (estimate of 6 or more negative annual returns in any 20 year period)
20
20Fees and costs for
your investment options
Administration fees and costs apply in addition to the fees and costs shown in this table. Please refer to the PDS and Fee Brochure
for further information about fees and costs, including how the figures shown below are calculated.
The investment fees and costs
are made up of
Equals Transaction
Plus Transaction Buy-sell
investment costs (gross)1
Performance other costs (net) spreads
fees and costs
fee investment
fees and costs
Entry %/
% pa % pa % pa % pa
Exit %
Your investment options
NAB Staff MySuper 0.23% 0.74% 0.97% 0.08% 0.00%/0.00% 0.08%
Diversified options
Capital Stable 0.12% 0.49% 0.61% 0.00% 0.10%/0.10% 0.06%
Balanced 0.21% 0.61% 0.82% 0.06% 0.00%/0.00% 0.06%
Growth 0.23% 0.74% 0.97% 0.08% 0.00%/0.00% 0.08%
High Growth 0.22% 0.79% 1.01% 0.08% 0.00%/0.00% 0.08%
Sector-Specific options
Cash Plus 0.00% 0.12% 0.12% 0.00% 0.01%/0.01% 0.00%
Fixed Interest 0.00% 0.33% 0.33% 0.00% 0.10%/0.10% 0.04%
Australian Shares 0.04% 0.52% 0.56% 0.10% 0.00%/0.00% 0.10%
Overseas Shares 0.00% 0.80% 0.80% 0.06% 0.00%/0.00% 0.06%
1
Transaction costs (gross) is a figure reflecting all transaction costs incurred by the investment option before taking into account
buy-sell spreads recovered. It is transaction costs (net) rather than transaction costs (gross) which impact investment returns to
a member.
21Cost of product for
your investment options
Cost of product for 1 year
The cost of product gives a summary calculation about how ongoing annual fees and costs can affect your superannuation
investment over a 1-year period for all superannuation products and investment options. It is calculated in the manner shown
in the Example of annual fees and costs.
The cost of product information assumes a balance of $50,000 at the beginning of the year. (Additional fees such as a buy–sell
spread may apply: refer to the Fees and costs summary for the relevant superannuation product or investment option.) You
should use this figure to help compare superannuation products and investment options.
Cost of Product $ pa
(based on account balance of $50,000)
Your investment options
NAB Staff MySuper 643.00
Diversified options
Capital Stable 423.00
Balanced 558.00
Growth 643.00
High Growth 663.00
Sector-Specific options
Cash Plus 178.00
Fixed Interest 283.00
Australian Shares 448.00
Overseas Shares 548.00
22For more information call us from
anywhere in Australia on
1300 55 7586 or contact your
financial adviser.
Postal address
Plum Super
GPO Box 63
Melbourne VIC 3001
Registered office
Ground Floor, MLC Building
105–153 Miller Street
North Sydney NSW 2060
plum.com.au
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