Member Information Booklet - REI Super

investment options
REI Super Elite offers you a number of different investment
options to cater for your own particular preferences about return
and risk.
History shows that investment markets can behave differently
according to different economic situations, and it is often difficult
to predict these in advance.
You can choose to invest in one option or a mixture, depending
on your investment needs.
There are nine investment options available, each one
representing a different investment strategy and risk. They are:
> Super Growth
> Trustee Super Balanced
> Super Stable
> Super Cash
> Australian Shares
> International Shares
> Australian Property
> Global Property
> Fixed Income.
You can make an investment choice when you join the
Fund or when your needs change. See the Membership
Application Form.
If you do not choose an investment option, your account balance
and ongoing contributions will be invested in the Trustee Super
Balanced option. This is known as the ‘default’ option.
Each investment option presents a different degree of investment
risk (volatility), together with a different likely level of earnings
(return) on the investment. Investment risks include:
> changing economic cycles
> political events, wars and natural disasters
> investment market sentiment
> changes in tax and legislation
> changes in interest rates and currency relativities
> factors affecting particular industries, companies or securities.
The effects of this volatility on investments may be that, over
some period, they do not grow and may, in fact, fall in value.
None of REI Super’s investment options is capital guaranteed,
and their value may rise and fall.
When making investment decisions, the Fund’s investment
managers take into account the expected return and
performance of their investments depending on their own
investment style.
REI Super does not currently take into account labour standards
or environmental, social and ethical considerations in selecting
investments of the Fund, nor does it require its investment
managers to do so.
The managers may consider social, ethical, environmental
matters or labour standards of companies within the portfolio
from time to time where these may materially impact on
performance.
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your investment decision
Investment decisions are important and should reflect your
particular circumstances, so in choosing your option(s) it is
important to consider the investment, its level of risk and
expected return, how it relates to your investment goals, and
other investments you may hold. You should read all the
information in this Booklet carefully and seek appropriate
professional advice before you make your decision.
Considering your investment goals
To meet your investment goals, an investment must fit with your:
> return expectations – that is, the type of returns that you are
seeking from an investment
> investment time horizon – which is the length of time you
expect to hold an investment, and
> risk tolerance – which refers to the extent of variation in the
value of the investment, and returns from your investment, that
you are willing to bear over the course of your investment.
understanding the risks
All investments have some level of risk. Risk is the likelihood that
you may not get all your money back, and/or get lower returns
than expected.
Investments with higher expected returns often involve higher
risk. Cash investments generally carry the lowest level of risk,
bonds a moderate level of risk, listed property a moderate to
high level of risk, and shares the highest risk.
However, cash investments usually offer the least rewards,
whilst shares have potential for the greatest return.
risk profiles
In the investment profiles shown:
> Trusts with ‘High’ risk profiles may experience periods of
negative (and/or volatile) returns, and loss of value, although
they also offer greater potential returns.
> Trusts with ‘Medium’ or ‘Medium to High’ risk profiles may
also experience periods of negative (and/or volatile) returns,
but not as frequently as Trusts with a ‘High’ risk profile. These
Trusts may also offer greater potential for capital growth than
Trusts with a ‘Low’ risk profile.
> Trusts that have ‘Low to Medium’ or ‘Low’ risk profiles are not
expected to have frequent periods of negative (and/or volatile)
returns, although you may experience negative returns in
certain market conditions; and
> Trusts that have ‘Very Low’ risk profiles are not expected to
have negative (and/or volatile) returns, but may do so in
certain market conditions.
Before investing, it is important that you understand the risk
involved in the investment you are making, your tolerance to
that risk and your proposed investment period.