Investment Options

 

Objectives

• To achieve a return that exceeds CPI by at least 1.5% p.a. over 3 and 5 year periods, after tax and investment fees.
• To outperform the notional return on the benchmark portfolio.
• To limit the likelihood of a negative annual return to 1 in 100 (1%).

Characteristics

By investing in cash and the short-term money market, the Cash Option provides access to stable, but usually low, returns. As a result, the risk of negative returns is very low:

• Expected average return 3.7% p.a.
• Standard deviation 2.1%.
• Probability of negative annual return less than 1.0%.

Investment fees

The returns credited to accounts invested in the Cash Option are net of tax and actual investment costs. For the Cash Option the investment costs are expected to be approximately 0.10% of assets.

Pensions

The objectives and characteristics of this option described above are net of investment tax. In Division 9 and Division 14, no investment income tax is levied on the assets backing these accounts. For Division 9 and Division 14 members the Credited Interest Rate will be on a gross of tax basis to recognise this.

For more information, please refer to your Product Disclosure Statement.