Your super is probably one of the biggest investments you'll ever make. How you invest it can make a big difference to how much money you have when you retire.

Our experienced investment team seeks out investments to help guard and grow our members’ savings and retirement income. Read on for a quick guide to types of investments at ART.

---

Growth vs defensive assets

When you invest your money, you invest in assets. Generally speaking, the assets tend to fall in a range between growth and defensive. Here's what they mean:

What are growth assets?

Growth assets are investments with the potential to deliver stronger medium to long-term returns. The trade-off is that they have a higher risk of short-term losses. For example, shares are a type of growth asset.

What are defensive assets?

Defensive assets are investments with a lower chance of making a loss. The trade-off is that they usually give lower returns. Cash is an example of a defensive asset.

---

What you can invest in at ART

An asset class is a group of assets with similar characteristics. At ART, we group assets into 5 asset classes. These are:

• Australian shares

• International shares

• Unlisted assets and alternatives

• Fixed income

• Cash

When we talk about asset allocation, we mean the process of deciding how much of each asset class makes up each investment option. Seeing which assets your money is invested in can help you understand how your super balance can change over time.

---

What are shares?

Shares let you own part of a company. When you buy shares, you're buying (usually a very small) stake in that company.

You can use shares to earn money by:

1. Earning dividends. Dividends are a percentage of a company's profit that's paid to shareholders.

2. Selling your shares for a higher price than what you bought them for.

But remember, the value of shares can go up and down based on things like how well the company is doing, what's happening in the economy, and even how other investors are feeling.

Shares have historically had stronger long-term returns than defensive asset classes, but their value tends to be less stable in the short term.

That's why when we talk about our investment options, you'll often see shares described as 'growth assets'. At ART, you can invest in Australian shares and international shares.

What are Australian shares?

Australian shares are shares in publicly traded companies listed in Australia.

What are international shares?

Shares in companies that are listed internationally. Buying shares means investing in listed companies around the world.

---

What are unlisted assets and alternatives?

Unlisted assets aren't typically listed on an exchange like the stock exchange.

Returns can be higher than many listed asset classes and are often more stable. This is because these assets aren't as easy to trade as listed investments and are often valued or traded less frequently. This means they have a different return pattern than standard asset classes, which helps diversify returns and reduce risk.

Some unlisted assets have characteristics of growth assets, and some are more like defensive assets.

At ART, we split this asset class into sub-classes:

• Private equity: Investments in shares in companies that aren't publicly traded.

• Infrastructure: This includes big assets like roads, airports, hospitals, utilities and data centres.

• Property: Investments in real estate assets and strategies that may include office buildings, shopping centres, industrial buildings and residential property.

• Private credit: Loans made to companies, where the loans aren't publicly traded.

• Alternatives: This includes commodities and multi-asset class investments.

---

What are fixed income investments?

Fixed income assets are like loans to a government or a company. They have a set interest rate, typically pay regular interest in the form of quarterly or semi-annual coupons, and the principal is paid back at the end of the loan term.

Fixed income assets can:

• protect capital

• boost returns

• protect against inflation.

---

What are cash investments?

Cash means money in the bank or very short-term loans. This includes things like money at call, term deposits and bank bills.

Cash is often considered to be the most secure asset class, but it might not earn returns that'll keep up with inflation.

---

We're here to help

Choosing how to invest your super is a big decision. If you're not sure what's right for you, we're here to help. Here are some ways we can support you:

Remember, your super is your future. Taking an interest in how it's invested today could make a big difference to your lifestyle in retirement. It's worth spending some time to understand your options and make a choice that feels right for you.