Investment Options

 

Objectives

• To achieve a return that exceeds CPI by at least 1.5% p.a. over a 12 month period, after tax and investment fees.
• To outperform the notional return on the benchmark portfolio.
• To never achieve a negative annual return.

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 negligible:

• Expected average return 3.8% p.a.
• Standard deviation 0.8%.
• Probability of negative annual return 0.0%.

Investment fees

The CIR for accounts invested in the Cash Option are net of tax and net actual investment costs. For the Cash Option the investment management 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 CIR will be on a gross of tax basis to recognise this.

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