We adopt a diversified, strategic approach to where we invest and our asset classes form the building blocks of the investment options made available to you. These asset classes determine the growth and defensive assets allocated to your portfolio.
The return from growth assets (like shares) comes mainly from capital growth with income in the form of dividends. While the return from defensive assets (like cash and fixed interest) is mainly from interest. Some asset classes, such as property and infrastructure, have both growth and defensive characteristics as over time they deliver both capital growth and reliable income.
Each of our Pre-mixed options are made up of different asset class combinations providing a choice in growth/defensive orientation to capitalise on the growth in rising markets and protection in falling markets.
Let’s take a deeper dive into how and where we manage specific investments.
Australian equity investments can provide capital growth as well as tax effective income to deliver greater real returns to your super. Along with your international equity assets, they form the foundation of the growth engine driving your super.
Equities – or shares – provide an exposure to growth assets through investments in publicly listed companies. While the popularity of Australian equities tends to grab the daily headlines, it’s also important to understand the role international equities play in a diversified super portfolio.
Infrastructure is a focus point for governments and a popular subject for investors. Some like its ‘tangible’ characteristics. Others like the ‘public good’ factor. Many like the idea that infrastructure investing could ease their daily commute. Carefully chosen infrastructure investments can play multiple roles in your super portfolio.
Real estate tends to be a fairly reliable barbeque-stopper, but few people get excited about property investments within their superannuation fund. Perhaps they should. Property investments at Mercy Super are carefully selected to give your portfolio stable income and some capital growth.