We’re excited to announce our newest investment option, Thrifty, launching on 1 July 2021.

Designed for members who want low investment fees, Thrifty is driven by low cost growth assets and takes a more passive approach to managing these investments.

Everything you need to know about Thrifty

Why are we launching a new investment option?

Here at Qantas Super, everything we do is driven by our members. We’re always asking members what they need and want from their super and, a little while ago, you told us that a new, low-cost investment option was at the top of the list. The result is Thrifty.

Why ‘Thrifty’?

From introducing the world’s first Business Class cabin to launching Jetstar, and a range of innovations since, the Qantas Group has always focused on ensuring it caters to every type of customer in the market.

At Qantas Super we wanted to cater for our fee-conscious members that wanted a low-cost option to help them reach their retirement goals. We wanted a name for the option that embodied this thrifty mindset, which means to be careful with how you use your money and resources.

What is the investment fee?

The total investment fee for Thrifty is 0.16%. You can find out more about investment fees here.

How is Thrifty invested?

Thrifty is invested in a diversified mix of low-cost growth and defensive assets, tracking the performance of multiple indices across the international market. These are:

  • Australian equities: S&P/ASX300
  • Global equities: MSCI All Countries World ex-Australia Index
  • Global Listed property: S&P Global REIT Index
  • Australian fixed interest: Bloomberg AusBond Government All Maturities Index
  • Cash: Bloomberg AusBond Bank Bill Index

This table shows Thrifty’s strategic asset allocation and allocation ranges:

Asset classStrategic asset allocationRange
Equities72.5%57.5%-87.5%
Alternatives0%0%-15%
Fixed interest22.5%7.5%-37.5%
Cash5%0%-20%

How is Thrifty low cost?

Due to its largely passive nature, investing by tracking market indices incurs lower costs than the active management of Qantas Super’s other investment options.

What is an index?

A market index represents a segment of a financial market. For example, the S&P/ASX300 is a listing of the top 300 companies on the Australian Securities Exchange (ASX) by float-adjusted market capitalisation. Market indexes are often used as a benchmark, or barometer of the wider market’s overall performance.

What is the investment objective?

This investment option aims to:

  • achieve a return that exceeds CPI by at least 3.5% pa over a seven year period, after tax and investment fees; and
  • limit the likelihood of a negative annual return to less than five in 20 years.

What does a ‘passive approach’ mean?

When you invest by tracking a market index, much of the work that comes with managing your investment is done for you by the body that compiles the index itself. For example, in the case of the S&P/ASX300, the ASX and Standard and Poor’s (S&P) compile and track movement in the list, rebalancing each March and September. However, it’s important to note that simply tracking a market index can leave your investment more open to the ups and downs of the market.

On the other hand, Qantas Super’s other investment options, such as Growth, are actively managed with the help of skilled investment managers around the world. Rather than just tracking an index, our managers invest across a broad range of asset classes, both listed and unlisted. This active approach allows for greater exposure to a wider range of assets and, in turn, greater diversification, helping to deliver smoother returns over the long term.

Is Thrifty right for me?

While super is a long-term investment, it’s important to review the way your super is invested every so often to ensure your options continue to meet your personal investment needs and goals.

Here are a couple of things to consider when reviewing your options:

  • Your time horizon: each of our investment options has been designed with an investment time horizon in mind. This is the length of time over which a member must be invested in the option in order to reach achieve the stated return objective
  • Your risk profile: your risk profile is the amount of risk you’re prepared to take in exchange for reward. Each of our investment options has a risk level rating, to let you know how much risk you should be comfortable with if you want to invest your super in that option.
  • Your current account balance vs future contributions: you can choose to invest your current account balance and your future contributions differently. You can choose much of your current account balance to invest in each option by dollar amounts, or by percentage. Meanwhile, you can specify how much of your future contributions will go into each option by percentage

A Super Adviser can help you review your investment options and determine which may be right for you.

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