Investment Options and Risk Issued 1 March 2013

Transcription

1 Options and Risk Issued 1 March 2013 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation accumulation plan (PSSap), fifth edition, issued on 1 March The decisions you make now about your super can help you reach your retirement goals. Take the time to understand your options, taking your personal objectives, financial situation and needs into account. For example, you should consider: > > the amount of time your money will be invested before you need it for retirement > > the level of investment performance that you are expecting > > the level of risk and fluctuation in the value of your investment that you can tolerate. We pool your super with that of other members in a pooled super trust and invest it according to the investment options you choose. If you do not choose an investment option, we will invest your money in our default option, Trustee Choice. In the PSSap, you can mix and match your options in a number of different ways. You can invest in one or more of our four pre-mixed investment options Conservative, Balanced, Trustee Choice, and Aggressive. Please note that the Balanced and Trustee Choice options will be merged in the future. Members will be provided with further details when that occurs. You can also create your own portfolio using the four options above and the following seven individual asset class options Cash, Government bonds, Property, Australian shares, International shares, International shares (unhedged) and Sustainable. You can combine the two categories any way you want. You can invest the contributions already made to your PSSap super account in one or more options, and then invest future contributions in a different selection of available options. The choice is yours. Assets that make up the investment An asset class is a category of similar financial. The following is a general description of asset classes that make up the pre-mixed and individual asset class options. asset The corporate asset category comprises Australian shares, international shares, private equity (investment in a company not listed on the stock exchange) and corporate credit investments. These investments can earn a real return by financing corporations through public and private equity and debt markets. Australian shares Investing in Australian shares means you are investing in companies listed on the Australian Securities Exchange. The return on your share investments is your part of the companies profits which is paid to shareholders in the form of dividends, and any capital gains or losses from share price fluctuations. Australian companies are exposed to both local and global market fluctuations and as the companies fortunes fluctuate, so will the value of any shares. Share prices are affected by market forces and are considered to be one of the more risky investments, but over the longer term may offer relatively higher returns. Your Government Super at Work Any financial product advice in this document is general advice only and has been prepared without taking account of your personal objectives, financial situation or needs. Before acting on any such general advice, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation or needs. You may wish to consult a licensed financial advisor. Commonwealth Superannuation Corporation (CSC) ABN: AFSL: RSEL: L Trustee of the Public Sector Superannuation accumulation plan (PSSap) ABN: RSE: R of 9

2 International shares Investing in international shares is like investing in Australian shares except that the companies are selected from those listed on international stock markets rather than the Australian stock market. In addition to being exposed to global stock market fluctuations, investment returns can also be influenced by currency movements. Foreign currency exposure is managed through hedging against Australian dollars. The level of hedging is determined by CSC and may vary from time to time. Credit Investing in corporate credit means your money is lent to corporate organisations wishing to raise capital. Generally in return, you receive a fixed rate of interest, until the bond matures and the amount invested is repayable. CSC invests in Australian and international corporate credit. This is generally considered a moderate risk investment as the predominant exposure is to credit risk (that is the risk that a borrower cannot or will not honour its exisiting obligations) and interest rate risk. Real asset The real asset category comprises property and infrastructure investments. These investments earn a real return by financing the building, maintenance, management and trading of real, accessed through public and private equity and debt markets. Property Property includes investments in established buildings and properties, for example shopping centres, or buildings under construction. We also invest money in trusts and property companies, which means we pool your money together with that of other investors, in order to have the scale to purchase a share of very large properties. The investment returns on property come from rent and changes to property values over time. Our property portfolio generally has lower returns than Australian shares as its risk profile is more moderate. Infastructure Infrastructure includes investments in essential public works facilities and services in Australia and overseas, for example, toll roads, airports, schools, water systems and power supply. We also invest money in trusts and infrastructure companies, which means we pool your money together with that of other investors, in order to have the scale to purchase a share of very large infastructures. Sovereign asset The sovereign asset catergory comprises government bonds and cash investments. These investments earn a real return by financing sovereigns and banks, through the holding of governement bonds and Australian cash, respectively. Cash The cash asset class invests in cash (deposits with a bank), Australian-dollar-denominated money market securities (such as bank bills and promissory notes) that are issued or guaranteed by a government, bank or corporate entity. These securities must have a minimum credit rating of A1 (or its floating rate equivalent) for short-term securities and a minimum credit rating of A- for long-term securities. Standard & Poor s (or the equivalent from Moody s or Fitch if no Standard & Poor s rating is available) determine these ratings. Interest rate futures, swaps and re-purchase agreements are also investible securities in this sector. Government bonds Investing in government bonds basically means your money is lent to governments wishing to raise capital. Generally in return, you receive a fixed rate of interest, until the bond matures and the amount invested is repayable. CSC invests in both Australian and international government bonds (such as inflation-linked and nominal, government and semigovernment bonds issued by developed and emerging markets). This is generally considered a moderate risk investment as the predominant exposure is to soveriegn credit risk (that is the risk that a government cannot or will not honour its existing obligations) and interest rate risk. The alternative category comprises investments not included in the traditional asset classes listed above. Examples include investments in hedge funds and multi-asset diversified funds. These investments can have differing levels of risk depending on the actual strategy employed. Sustainable Sustainable option is the only option investing in the sustainable asset class. Investing in the sustainable asset class/option means you are investing in companies that lead their industry peers in terms of sustainable business practice ( Australian Sustainable Leaders ). The option seeks to capture the performance of Australia s Sustainable Leaders with a well-diversified portfolio that has expected risk and total return characteristics similar to the broader Australian share market (as represented by the S&P/ ASX 200 Index). The portfolio holds securities included in the Australian Sustainable Asset Management (SAM) Sustainability Index (the AuSSI). SAM selects approximately 70 stocks for inclusion in the AuSSI from a universe of 200 of Australia s largest listed companies. Most of these companies have a primary listing on the Australian Securities Exchange (ASX). This universe may also include other selected stocks that are well traded, with adequate liquidity on the ASX and have a significant part of their business operations in Australia. Your Government Super at Work 2 of 9

3 Pre-mixed investment options Our four pre-mixed investment options invest in various asset classes, offering diversified options with varying levels of risks. We monitor market movements for you, rebalancing individual asset classes within the allocations. Conservative (will be renamed Income Focused) To outperform the Consumer Price Index (CPI) by 2% per annum over the medium to long-term. The conservative option is considered low to medium risk (band three). It may be suitable for those who prefer to take less risk and/or need to access their super in the near future. The minimum suggested timeframe for holding this option is five years. Target asset allocations Real Sovereign Australian and international shares, private equity and corporate credit Private and public property, infastructure and other real Government bonds and cash Multi-asset Target 20% 25% 45% 10% Balanced option Please note that the Balanced and Trustee Choice options will be merged in the future. Members will be provided with further details when that occurs. To outperform the Consumer Price Index (CPI) by 3.5% per annum over the medium- to long-term. This option is considered medium-to high-risk (band five). It may be suitable for those prepared to take more risk in exchange for potentially higher returns on their investment over the medium-to long-term, and who are comfortable with moderateto high- levels of volatility and periods of negative return. The minimum suggested timeframe for holding this option is ten years. Target asset allocations Real Sovereign Australian and international shares, private equity and corporate credit Private and public property, infastructure and other real Government bonds and cash Multi-asset Trustee Choice the default option Target 62% 15% 9% 14% Your super will be invested in this option if you do not choose an alternative investment option. To outperform the Consumer Price Index (CPI) by 3.5% per annum over the medium- to long-term. This option is considered medium- to high-risk (band five). It may be suitable for those prepared to take more risk in exchange for potentially higher returns on their investment over the medium- to long-term, and who are comfortable with moderate- to high-levels of volatility and periods of negative return. The minimum suggested timeframe for holding this option is ten years. Target asset allocations Real Sovereign Australian and international shares, private equity and corporate credit Private and public property, infastructure and other real Government bonds and cash Multi-asset Target 62% 15% 9% 14% Your Government Super at Work 3 of 9

4 Aggressive To outperform the Consumer Price Index (CPI) by 4.5% per annum over the medium- to long-term. This option is considered high risk (band six). It may be suitable for those prepared to take more risk in exchange for potentially higher returns on their investment over the long-term, and who are comfortable with higher levels of volatility and periods of negative return. The minimum suggested timeframe for holding this option is fifteen years. Target asset allocations Real Sovereign Australian and international shares, private equity and corporate credit Private and public property, infastructure and other real Government bonds and cash Multi-asset Target 71% 17% 2% 10% Asset allocation and risk s in each asset class can vary within a target asset allocation range. For further information see Pre-mixed options target asset allocation on page 7. options are described using risk bands and labels based on the estimated number of negative returns over a 20-year period. For further information see Risk band and label on page 6. Individual investment options You can create your own portfolio using individual asset class options, invest in one asset class option or combine the individual and pre-mixed options the choice is yours. You should note that when creating your own portfolio, market movements may take your individual asset class proportions away from the point at which you started. If this happens, your fees and risk level may change and you will need to decide if you want to rebalance them. Cash Before the payment of tax, to match the return from the UBS Australian Bank Bill Index. This option is considered very low risk (band one). It may be suitable for those who prefer to take less risk and/or need to access their super in the near future. The minimum suggested timeframe for holding this option is one year. Government bonds Before the payment of tax, to at least match the performance of the UBS Australian Government Bond index. This option is considered medium-risk (band four). It may be suitable for those who are comfortable with moderate- levels of volatility and periods of negative return, and/or need to access their super in the near future. The minimum suggested timeframe for holding this option is five years. Property Before the payment of tax, to outperform the Consumer Price Index (CPI) by 5% per annum over the medium to long-term. This option is considered medium-risk (band four). It may be suitable for those who are comfortable with moderate-levels of volatility and periods of negative return. The minimum suggested timeframe for holding this option is seven years. Australian shares Before the payment of tax, to at least match the performance of the ASX 300 Accumulation Index. This option is considered very high risk (band seven). It may be suitable for those prepared to take higher risk in exchange for potentially higher returns on their investment over the long-term, and are comfortable with high levels of volatility and periods of negative returns. The minimum suggested timeframe for holding this option is fifteen years. Your Government Super at Work 4 of 9

5 International shares Before the payment of tax, to at least match the return of the MSCI All Country World (excluding Australia) Index with net dividends reinvested and a currency hedging ratio determined by the Trustee. This option is considered very high risk (band seven). It may be suitable for those prepared to take higher risk in exchange for potentially higher return on their investment over the long-term, and are comfortable with high levels of volatility and periods of negative returns. This option will usually be less exposed to currency fluctuations than the International shares (unhedged) option, although a portion of your investment will still be subject to currency risk. The minimum suggested timeframe for holding this option is fifteen years. International shares (unhedged) Before the payment of tax, to at least match the return of the MSCI All Country World (excluding Australia) Index with net dividends reinvested. This option is considered very high risk (band seven). It may be suitable for those prepared to take higher risk in exchange for potentially higher returnson their investment over the long-term, and who are comfortable with high levels of volatility and periods of negative returns. As investments are not hedged to the Australian dollar, this option is fully exposed to foreign exchange movement. The minimum suggested timeframe for holding this option is fifteen years. Sustainable The Sustainable option is passively managed and represents a well-diversified portfolio that has expected risk and total return characteristics similar to the broader Australian share market (as represented by the S&P/ASX 200 Index).* This option is considered very high risk (band seven). It may be suitable for those prepared to take higher risk in exchange for potentially higher returns on their investment over the long-term, and are comfortable with high levels of volatility and periods of negative returns. The minimum suggested timeframe for holding this option is fifteen years. * You should be aware that CSC s Sustainable option returns may deviate from SSgA s underlying returns due to members investing in and out of the option and CSC s costs associated with administering this option. Significant risks Super, like any investment, has risks. Significant risks include: Risk Inflation Asset investment risk Market risk Interest rate risk Currency risk Derivatives risk Fund risk Insurance risk Super laws Changes to tax Liquidity risk Description Inflation may exceed the return on investment. Individual we buy can (and do) fall in value for many reasons, such as changes in the internal operations or management of a fund or company we invest in, or in its business environment. Economic, technological, political or legal conditions, and even market sentiment, can (and do) change, and this can affect the value of the investments in the fund. Changes in interest rates can have a positive or negative impact directly or indirectly on investment value or returns. We invest in other countries and if their currencies change in value relative to the Australian dollar, the value of the investment can change. We may use derivatives to reduce risk or gain exposure to investment markets when we think it appropriate. Risks associated with these derivatives include the value of the derivative failing to move in line with the underlying asset, market or index, and counterparty risk the risk that the other party to the derivative contract cannot meet its obligations under the contract. Risks particular to the fund include that it could cease operation, fraud against CSC could occur, Board restructure and our investment professionals could change. Death, total and permanent disability (TPD) cover and income protection are obtained from a third party. There are risks that your insurance cover will not meet your individual needs. You should read the PSSap Product Disclosure Statement and the Insurance and your PSSap super booklet available on our website to ensure that the insurance offered through PSSap is appropriate for you. Changes are frequently made to superannuation law and may affect your investment and your ability to access it. For example, under the existing law, your super benefit may be split by agreement or by court order with your spouse if you and your spouse permanently separate. Changes can occur to taxes on investments or super generally, which may affect the value of your investment or benefit. Assets that we invest in can become difficult to trade under certain market conditions. Your Government Super at Work 5 of 9

6 Risk management Risk can be managed and even minimised, but cannot be eliminated. No matter how skilled the investment manager, or how strong performance has been in the past, there is always a chance you could receive less than you invested. Ways we manage risk include: > > diversification across asset classes, individual, investment styles and investment managers > > continuous research and analysis including environmental, social and governance (ESG) analysis > > understanding the inherent risks of any particular type of investment > > systematic compliance and fraud control programs, and > > continuous monitoring of market performance, investment manager performance and relevant legislation. Our investment governance focuses on managing risk and is driven by our primary investment objective which is to maximise long-term real returns while minimising short-term risks. Professional investment managers (within agreed investment parameters) make day-to-day investment decisions which are regularly reviewed. We use a number of governance advisory services to support our proxy votes in the Australian and international companies in which we invest. The extent to which labour standards or environmental, social or ethical considerations into account We actively monitor environmental, social and corporate governance (ESG) practices and exposures as part of investment risk management processes in accordance with the ESG policy. We research, engage and work collaboratively with a diverse group of investment managers, advisors and shareholder groups to influence companies to adopt good ESG practices, bringing about change by working collaboratively rather than by simple divestment. We believe that poor management of ESG issues can lead to financial risk as well as a decline in the long-term value of investments. We also embrace our proxy voting responsibilities, where possible, voting on all matters brought to shareholders by the companies in which we invest. We are a signatory to the UN Principles for Responsible a framework for global best practice in responsible investment and includes commitments to address ESG issues in the policies and practices of investors. We are a member of the Investor Group on Climate Change Australia/New Zealand and an investor signatory to the Carbon Disclosure Project. These collaborative industry initiatives address the business and shareholder value implications of climate change. We are also a founding investor in Regnan, which provides governance research and engagement services to CSC and its other institutional investors and clients. Regnan focuses on a constructive engagement process that aims to reduce portfolio risk exposures, including those relating to environmental risk. We offer an investment option, called Sustainable, which takes labour standards, environmental, social or ethical considerations into account when buying, holding or selling shares, refer to Taking labour standards and environmental, social and ethical considerations in the Sustainable option into account on page 8. Risk band and label The risk band and label use a standard risk measure based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s. The table below demonstrates the estimated number of negative annual returns over a 20-year period applied to determine the risk band and label. Risk Band Risk Label Estimated number of negative annual returns over a 20-year period 1 Very low Less than Low 0.5 to less than 1 3 Low to medium 1 to less than 2 4 Medium 2 to less than 3 5 Medium to high 3 to less than 4 6 High 4 to less than 6 7 Very high 6 or greater For more information on the methodology applied to calculate the standard risk measure, go to Your Government Super at Work 6 of 9

7 Pre-mixed options target asset allocation We monitor market movements for you, rebalancing individual asset classes within the following target asset allocations range. Conservative Balanced Trustee Choice Aggressive 0-40% 30-75% 30-75% 20-95% Real 0-35% 5-25% 5-25% 0-50% Soverign % 5-65% 5-65% 0-35% You will receive written confirmation when we have processed your investment switch. We aim to process your transaction within five business days after we validate your request. How the PSSap performs and putting investment performance into perspective Performance information can be found at Super is a long-term investment and past performance is no indication of future performance investment markets are volatile, and it is not possible to predict when they will go up or down or how quickly this will happen. Foreign currency hedge ratio 0-70% 0-30% 0-30% 0-70% 0-100% 0-100% 0-100% 0-100% Target exposures to private assests (private equity, private debt and real ) are limited to around 25% of the fund, with a rebalancing range of ± 10% around that target. Target asset allocation ranges show, on average, the allocations the investment option is expected to hold over the long-term. These allocations can be changed, for example in periods of extreme market conditions. This may affect the fees you pay and notice may not be provided. Keeping track of your investments Once you have made your choice, you also need to keep an eye on your investments, particularly if you have created your own portfolio using individual asset class options. Market movements may take your individual asset class proportions away from the point at which you started. As this happens, your fees and risk level may change and you will need to decide if you want to rebalance them. We rebalance the individual asset class allocations in the pre-mixed options regularly. Switching between You can switch to a different investment strategy any time: > > login to your PSSap Member Online account, or > > send us an choice form. This form is available on our website or you can call us on for us to or post you a copy. It doesn t cost you anything to make your first investment choice, if you do so within 30 days of joining the PSSap. You also have two free switches each financial year and further switches cost $20 each. If you decide to change your investment strategy for future contributions, and you do not switch the investment strategy for your existing super account, then we consider this as a first choice and switch fees will not apply. How your PSSap super is valued We value your interest in the PSSap in units. We use contributions made to the PSSap and other amounts transferred in to buy units in the investment option(s) you choose. We keep a record of all units you hold. You can estimate the balance of your super account on any business day by multiplying the number of units you hold in each investment option by the relevant sell unit price. Unit prices fluctuate in line with investment performance which may be either positive or negative. We generally publish unit prices on our website each business day. We generally deduct fees, expenses, management costs and taxes before we calculate the unit price. Where fees are payable directly from your PSSap super account for example, insurance premiums and switching fees units are sold to the extent required for payment. How we calculate unit prices The unit price for an investment option reflects the total value of in the investment option (less fees not deducted directly from your PSSap super account, expenses and taxes), divided by the number of all units issued in the investment option. The costs associated with the purchase or sale of fund investments are reflected in the unit price for the relevant investment option through a buy-sell spread. For further information, refer to the Fees and other costs booklet available at Generally we base our calculation of the value of in each investment option on the latest available market value at the end of each business day. Using these values, we will generally calculate the unit price for a given business day on the next business day. For example, we will generally calculate the unit price for 1 September (if a business day) and make it available on 2 September (if a business day). If we are unable to determine a unit price for a business day on the following business day due to an unforeseeable event, such as a trading suspension in relevant markets, we will take all reasonable steps to recommence unit pricing as soon as possible. Your Government Super at Work 7 of 9

8 Changes to options You should note that we can add or remove an option and change investment options. We will contact you if you are invested in an option we are about to cancel. If we are unable to contact you, or you do not nominate a new investment option, we will switch any funds you have in the investment option we are closing to our default option, Trustee Choice. Taking labour standards and environmental, social and ethical considerations in the Sustainable option into account The sustainable option invests in the SSgA Australian SAM Sustainability Index Trust (ARSN ), for which State Street Global Advisors, Australia Services Limited (ABN , AFSL ) is the Responsible Entity. SSgA has consented to being named in this document which forms part of the PDS and to including information about the SSgA Australian SAM Sustainability Index Trust in this document in the form and context in which it is included. At the date of this document, that consent has not been withdrawn. The SSgA Australian SAM Sustainability Index Trust invests in securities of companies that are included in the Australian SAM Sustainability Index (the AuSSI). The AuSSI is an index of companies which SAM considers to lead their industry peers in Australia in terms of sustainable business practice Australian Sustainable Leaders. SAM is a Swiss-based company, established in 1995 and recognised as a global leader in the field of sustainability research. SAM has consented to being named in this document which forms part of the PDS and to including the information about them in this document in the form and context in which it is included. At the date of this document, that consent has not been withdrawn. How the AuSSI works SAM selects approximately 70 stocks for inclusion in the AuSSI from a selection universe of 200 of Australia s largest listed companies, and 21 industry clusters covering the Australian economy. Most of these companies have a primary listing on the Australian Securities Exchange (ASX). This selection universe may also include other selected stocks that are well traded, with adequate liquidity on the ASX and have a significant part of their business operations in Australia. The process used by SAM to select companies for the AuSSI is the Sustainability Assessment. This is a proprietary methodology designed to score companies in terms of corporate sustainability with a special focus on ranking stocks within industry sectors. SAM conducts continuing research of economic, environmental and social developments to define criteria and weightings to assess and rate companies in terms of corporate sustainability. SAM identifies corporate sustainability criteria through the assessment of economic, environmental and social driving forces and trends. The criteria include both general and industry specific criteria, and cover the economic, environmental and social/labour dimensions outlined below. Economic Economic criteria not only reflect the financial robustness, strategic planning processes and governance of a company, but also how a company adapts to changing market demands, sustainability trends and macro-economic driving forces. These criteria measure a company s ability to make use of the economic benefits from sustainability opportunities and risks. Environmental Environmental criteria cover the environmental management and performance of a company. These criteria measure a company s efforts to reduce and avoid environmental pollution. Social/labour Social criteria cover both internal (employee relations and labour practices) and external (stakeholder and community relations) aspects. Social criteria are based on worldwide minimum standards and best practices, and also take into account the manner in which companies deal with human rights issues internally, in their supply chain and in the communities in which they operate. SAM carries out the Sustainability Assessment by asking the top 200 ASX listed companies (excluding investment companies) by market capitalisation to complete a questionnaire relating to the AuSSI criteria, and provide supporting documentation. Forty to 50 companies complete the questionnaire each year.the remaining top 200 ASX listed companies that do not participate in the questionnaire are assessed by SAM using publicly available information and data. This assessment is outsourced to an independent research firm, Evalueserve based in India. The outsourcing however involves comprehensive guidelines and supervision provided by SAM. Example of Sustainability Assessment Weightings Industry specific criteria 57% General criteria 43% 33% 33% 33% Your Government Super at Work 8 of 9

9 Measuring performance against defined criteria* Economic Dimension > Governance > Code of Conduct, Compliance > Risk & Crisis Management > Customer Relationship Management > Innovation Management Environmental Dimension > Environmental Management System > Environmental Performance > Climate Strategy > Product Stewardship > Biodiversity Social Dimension > Human Capital Development > Talent Attraction & Retention > Occupational health & Safety > Stakeholder Engagement > Social Reporting * Only key criteria are indicated: other factors may be taken into account. Dimensional weights can substantially differentiate from 33% based on aggregated criteria weights. by SSgA SSgA uses securities in the AuSSI to create a portfolio with characteristics (industry weight and asset size distribution) similar to those of the broader Australian equity market (as represented by the S&P/ ASX 200 Index). The sustainable option invests in this fund. SSgA does not independently monitor or review the securities in the SSgA Australia SAM Sustainability Index Trust for compliance with the social, environmental and labour criteria outlined above, but relies on the inclusion by SAM of a security in the AuSSI to indicate that SAM has made this assessment. SAM updates the AuSSI on an annual basis. If a company is removed from the AuSSI, SSgA will consider on a case-by-case basis whether to dispose of that security and the time for doing so. SAM analysts assess companies in the universe in terms of their sustainability performance. A defined set of criteria and weightings is used to assess the opportunities and risks deriving from economic, environmental and social developments for the eligible companies. Based on these assessments, companies are ranked within their industry group and selected for the Australian SAM Sustainability Index, if they are among the sustainability leaders in their field. A major source of information is the SAM questionnaire which is completed by companies participating in the annual review. Further sources include company and third-party documents. The final step of the assessment involves media and stakeholder analysis. This involves SAM analysts reviewing final assessments and scores to determine if they are fair and accurate given more recent developments and news. Portfolio construction SSgA uses securities in the AuSSI to create a portfolio with characteristics (industry weights and asset size distribution) similar to those of the broader Australian equity market (as represented by the S&P/ ASX 200 Index). The fund will hold most, but not necessarily all of the shares in the AuSSI. Sustainable investment policy stock selection The portfolio holds securities included in the Australian SAM Sustainability Index (the AuSSI). SAM selects approximately 70 stocks for inclusion in the AuSSI from a universe of 200 of Australia s largest listed companies, and 21 industry clusters covering the Australian economy. Most of these companies have a primary listing on the Australian Securities Exchange (ASX). This universe may also include other selected stocks that are well traded, with adequate liquidity on the ASX and have a significant part of their business operations in Australia. phone fax post members@pssap.com.au web overseas callers PSSap Locked Bag 9300 Wollongong BC NSW of 9