REI Super updates Conservative option

REI Super is rejigging its Conservative investment option and will change the name to "Growth Plus".

The change will take effective from June 30, the super fund said, noting that from a risk and return perspective the option is similar to the Bonds option.

The new option will take on more risky investments and increase its allocation to equities.

"Consequently, the Conservative investment option has not provided the level of product differentiation required to warrant keeping it in its current form and we see greater opportunity to offer an updated investment option," a note to members read.

"The proposed change is significant in terms of the underlying investments and the risk and return profile of the investment option."

The Conservative option aims for net returns of CPI+0.5% per annum over three-year rolling periods. Its asset allocation is split across mainly in international bonds hedged (28%), Australian bonds (31%), and Australian shares (8%).

The new option aims for investment returns of CPI + 4.5% p.a. over rolling 10-year periods. It invests across in Australian shares (40%), international shares unhedged (26%), international shares hedged (17%), and international shares in emerging markets (10%). It also has minor holdings in global property securities, cash and global listed infrastructure.