Shares

In the breakdown of assets underlying Media Super’s investment options, 'Shares' are detailed as 'Equity Listed'. Share investments may be domiciled in Australia or internationally. For details about the sector allocations of Media Super's investment options that include shares, refer to the individual Options

What are share investments?

Companies listed on a stock exchange issue shares (also known as equities or stocks) to raise capital. You become a shareholder and part-owner of the company when you purchase ordinary shares in a company. That means that you are entitled to dividend payments when the company decides there are earnings available for distribution to shareholders. Company performance (including debt levels), industry conditions or movements in the share market can affect the share price and make it rise and fall.

what are the risks of investing in shares?

Australian Shares

The most significant risk that Media Super’s Australian Shares portfolio is exposed to is market risk (i.e. the risk that the Australian share market falls in value). Because of this, over short-term periods in particular, there is a risk that the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative. Some of the investment managers in Media Super’s Australian Shares portfolio may use derivatives from time to time, so derivative risk is a factor, but this risk is controlled by limits imposed on their use, and the risk is likely to be small at the total portfolio level. Individual investment risk is present, although it is managed by significant diversification of the underlying investments.

Overseas Shares

The most significant risks that Media Super’s Overseas Shares portfolio is exposed to are market risk (i.e. the risk that overseas share markets fall in value) and currency risk (i.e. the risk that the value of overseas assets fall if the Australian dollar appreciates). Because of these risks, over short-term periods in particular, there is a risk that the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative. Diversification of investments in a range of different overseas markets reduces the overall market risk and, consequently, inflation risk.

Other risks

Some of the investment managers in Media Super’s Overseas Shares portfolio use derivatives from time to time, so derivative risk is a factor, but this risk is controlled by limits imposed on their use, and the risk is likely to be small at the total Overseas Shares portfolio level. Individual investment risk is present, although it is managed by significant diversification of the underlying investments. Some of the managers that Media Super employs may invest in hybrid instruments such as convertible securities.

What Shares investments is Media Super invested in?

Australian Shares

Most Media Super investment options invest in Australian Shares. Below are the top 20 share holdings in our Australian Shares portfolio as at 30 June 2016.

Top 20 Australian Shares holdings

Rank

Australian Shares

Weighting of

Australian Shares portfolio

(%)

1 Commonwealth Bank Of Australia 6.89
2 Westpac Banking Corp 5.28
3 National Australia Bank Ltd 4.08
4 Telstra Corporation Ltd 3.12
5 Woolworths Ltd 3.09
6 Australian and New Zealand Banking Group Ltd 2.97
7 CSL Limited  2.21
8 BHP Biliton Ltd 2.05
9 Wesfarmers Ltd 1.97
10 QBE Insurance Group Ltd 1.75
11 Transurban Group 1.72
12 Insurance Australia Group Ltd 1.58
13 AMP Ltd 1.49
14 Suncorp Group Ltd 1.46
15 Macquarie Group Ltd 1.42
16 Tatts Group Ltd 1.37
17 Crown Resorts Ltd 1.32
18 Westfield Corporation 1.19
19 Alumina Ltd 1.16
20 Event Hospitality And Entertainment Ltd 1.12
Total top 20 as % of Australian Shares portfolio 47.23

Approximate holdings as at 30 June 2016.

Overseas Shares

Most Media Super investment options invest in Overseas Shares. Below are the top 10 share holdings in our Overseas Shares portfolio as at 30 June 2016.

Top 10 Overseas Shares holdings
Rank Overseas Shares

Weighting of

Overseas Shares portfolio

(%)

1 Exxon Mobil Corp 1.45
2 Pfizer Inc 0.91
3 Time Warner Inc 0.82
4 Chevron Corp 0.79
5 Thermo Fisher Scientific Inc 0.78
6 AT&T Inc 0.74
7 Honeywell International Inc 0.66
8 Medtronic Plc 0.64
9 Reckitt Benckiser Group Plc 0.63
10 Cisco Systems Inc 0.62
Total top 10 as % of Overseas Shares portfolio 8.04

Approximate holdings as at 30 June 2016.