Investment Options

 

Objectives

• To achieve a return that exceeds CPI by at least 3.0% 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 14 (7%).

Characteristics

A large proportion of the Conservative Option is invested in risk controlling assets, resulting in stable, modest returns, with a relatively low likelihood of negative returns. The small allocation to return seeking assets provides some growth opportunities.

• Expected average return 5.5% p.a.
• Standard deviation 3.7%
• Probability of negative annual return 5.7%.

Investment fees

The returns credited to accounts invested in the Conservative Option are net of tax and actual investment costs. For the Conservative Option the investment costs are estimated to be approximately 0.25% 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.