Investment Options

Objectives

• To achieve a return that exceeds CPI by at least 3.5% p.a. over 3 to 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 of 1 in 6.5 (15%).

Characteristics

The Balanced Option provides a mix of asset classes, combining the growth features of the return seeking assets with the stability of the risk controlling assets.

• Expected average return 6.9% p.a.
• Standard deviation 6.6%
• Probability of negative annual return 14.5%.

Investment fees

The returns credited to accounts invested in the Balanced Option are net of tax and actual investment costs. For the Balanced Option the investment costs are estimated to be approximately 0.40% 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.