Investment Options

 

Objectives

• To achieve a return that exceeds CPI by at least 4.5% p.a. over a 7 year period, after tax and investment fees.
• To outperform the notional return on the benchmark portfolio.
• To limit the likelihood of a negative annual return to 5 in 20 (25%).

Characteristics

With all of the assets invested in return seeking assets, the Aggressive Option is expected to provide the highest level of returns in the long term. However this portfolio has the highest level of volatility and the likelihood of negative returns in any year is the highest.

• Expected average return 9.1% p.a.
• Standard deviation 14.7%
• Probability of negative annual return 22.7%.

Investment fees

The CIR for accounts invested in the Aggressive Option are net of tax and net actual investment costs. For the Aggressive Option the investment management costs are estimated to be approximately 0.60% 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.