How we create our Readymade investment plans
By choosing the right investment plan to suit your personal circumstances, you have a choice over which types of investments (or asset classes) your super is invested in. With our Readymade investment plans, you can choose from a range of pre-set plans with different combinations of asset classes, from lower to higher risk.
To check which investment plan you’re currently in, simply check your latest Member Statement or your Member Online account.
Our investment experts decide on the best mix for each plan
We employ an asset consultant who analyses asset classes and helps to decide on the appropriate mix for each investment plan. Together with our internal investment team, the asset consultant bases its recommendations on the medium to long-term outlook for the risk and return of each type of asset. This process is called asset allocation.
Our asset consultant finds a balance between different types of assets. Some have higher risk (like Shares) while others have lower risk (like Cash).
Diversification is a way to reduce the overall risk of investing
Financial assets don't all go up and down in value at the same time. Rather than invest in just one asset class, diversification involves investing across a number of different assets. This can help produce more consistent returns from your super over the long term.
We focus on long-term investments
Our Board creates objectives for each investment plan so we can check that asset allocations are made with a long-term view. When investing in super, making investment decisions with long-term goals has proved to be better than making decisions based on the short-term movement of markets.
For example, the price of Shares can change by the minute and it’s impossible to predict every short-term movement. However, history shows us that shares tend to increase in value over the long term, so we focus on the longer term and don’t get distracted by short-term price changes.
We regularly review the returns of our investment plans
Each investment plan has an objective for its return based on the Consumer Price Index (CPI), which is a measure of inflation in Australia. For example, the investment objective for the GESB Super Growth investment plan is CPI + 4%. This represents a high level of growth above inflation. The objective for each investment plan, and the mix of assets they invest in, is reviewed every year.
We also review the mix of assets in our investment plans
We regularly check that the mix of assets in each plan stays in line with our asset allocation ranges. For example, if the value of Australian Shares grows faster than other asset classes, that portfolio might become increasingly weighted to Australian Shares. We check our investment plans to make sure the percentage held in each asset class stays within our chosen asset allocation ranges over time.
Find the right investment plan for you
You don’t necessarily need to choose the investment plan that is performing best. You need the plan that suits your goals and how much risk you’re comfortable with. To help you learn more, you might like to use our online tool to find your investment style.
Learn more about GESB’s Readymade plans
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 28 October 2020.