ASSET CLASS DESCRIPTORS

Australian Equities

Investments in shares of companies listed on the Australian Stock Exchange. Offers potential for capital growth and also generates income in the form of dividends.

International Equities

Investments in shares of companies listed on different stock exchanges around the world. Offers potential for capital growth and also generates income in the form of dividends.

Australian Direct Property

Direct investments in Australian office buildings, shopping centres, industrial facilities and wholesale property funds. Unlisted direct property has a stable return and low correlation to more traditional asset classes.

International Listed Property

Provides diversification through shares in professionally managed real estate investment trusts (REIT’s) across developed countries. Includes investments in traditional real estate sectors as well as alternative asset classes like self-storage, healthcare and datacenters.

Private Equity

Investments in private companies (companies that are not publicly listed). Income is received from the profits made by these companies via their investments.

Private Credit

Privately negotiated loans and debt-financing from non-bank lenders. Also known as ‘direct lending’ or ‘private lending’. Income is received from the interest charged.

Growth Alternatives

Investments that sit outside of, and behave differently from, traditional asset classes, e.g. hedge funds, managed futures, derivatives contracts, commodities.

Short-Term Fixed interest

Investments that pay out a set level of cash flow to investors, typically in the form of a fixed interest or dividends.

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, typically a government or a corporation. A defensive asset, bonds are less risky than growth assets like shares and property.

Infrastructure

Investments in physical assets and related operations that provide businesses and society with essential services e.g. roads, airports, transport and utilities.

Managed Cash

A traditionally conservative investment class that provides steady returns. Value fluctuates with interest rates. Returns tend to be the lowest of all asset classes over time.

Other assets

International Equities Passive

A return guaranteed termed product provided by Challenger and benchmarked against MSCI ACWI ex Australia