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Diversified Alternatives

If you’re a medium to long-term investor who wants less ups and downs along the way, our Diversified Alternatives option may suit you.

Summary

As at 30 September 2023 (updated quarterly)

8.5% p.a.

Returns over the last 5 years1

7+ years

Suggested timeframe

1.86% p.a.

Fees (p.a.) + admin fees and costs

Overview

If you want to build wealth over the medium to long term, with less ups and downs along the way, you may be interested in Diversified Alternatives.

This option provides diversified exposure to unlisted investments and trading strategies.

Investment objective2

Investment objective for Accumulation and Transition to Retirement (TTR) Income accounts: CPI + 4.5% p.a.
CPI + 5.0% p.a.

Option size

Super assets: $351.3 million
Pension assets: $168.0 million

Risk2

 
  • Very low
  • Low
  • Low to medium
  • Medium
  • Medium to high
  • High
  • Very high

Expected number of years of negative returns over any 20-year period: 3 to less than 4. The risk is based on the standard risk measure (SRM).

Important

In poor market conditions, we reserve the right to restrict investment option changes and benefit payments. If you're not prepared to tolerate this risk, this investment option may not suit you.

Diversified Alternatives performance overview

As at 30 September 20231 (updated quarterly)


Australian Retirement Trust’s Diversified Alternatives option produced a return of 1.6% for the quarter and 5.5% over the year to September 2023. The option has delivered solid returns despite challenging conditions in financial markets. The portfolio invests in private equity, infrastructure as well as private debt. Over the quarter, all 3 asset classes contributed positively to the option’s performance, with private debt the best performing.

Accumulation accounts Retirement Income accounts3
10 years (p.a.) n/a n/a
7 years (p.a.) n/a n/a
5 years (p.a.) 8.5% 9.3%
3 years (p.a.) 11.4% 12.6%
1 year 5.5% 6.0%
3 months 1.6% 1.7%

Past performance isn't a reliable indicator of future performance. Returns shown are after investment fees and costs, transaction costs, and investment taxes (where relevant) but before admin fees and costs.

Diversified Alternatives asset allocations

As at 30 September 2023 (updated quarterly)


 

Asset allocations4
Private Equity
35.0%
Infrastructure
35.0%
Alternative Strategies
25.0%
Fixed Interest
0.0%
Cash
5.0%
Total 100%

Outlook and strategy

As at 30 September 2023 (updated quarterly)


We are maintaining a cautious and disciplined approach to making new investments across all three components of the portfolio.

In private equity, we invested in a provider of education finance in India, as well as a leading US-based provider of software solutions to the property and casualty insurance industry.

In our private debt portfolios, we continue to source attractive opportunities in private direct lending to middle market corporates in Europe, including a French provider of software to the construction industry as well as a UK based tradeshow and conference organiser. ART also established a substantial private debt mandate focused on direct lending opportunities in North America.

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  1. Past performance isn't a reliable indicator of future performance. Returns shown are after investment fees and costs, transaction costs, and investment taxes (where relevant) but before admin fees and costs. Returns shown are for Accumulation accounts. Returns up to 28 February 2022 are for Sunsuper, and after that are for Australian Retirement Trust using the same products.
  2. When reading the objectives and/or risks please also read the information in the Super Savings Investment Guide under 'Risks of our investment options' and 'Important information about expected returns'.
  3. Tax generally doesn't apply to investment earnings in Retirement Income accounts.
  4. For additional information on these asset classes, strategic asset allocations, and allowable ranges, read the Super Savings Investment Guide. Note that the effective asset allocation takes into account both the physical exposures to assets along with the effective market exposure from derivative instruments such as futures. These instruments are used by Australian Retirement Trust to bring effective market exposures closer to those represented by each option’s strategic asset allocation.