Investment Options

 

Objectives

• To achieve a return that exceeds CPI by at least 4.0% p.a. over a 5 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 4 in 20 (or 20%).

Characteristics

The Growth Option is dominated by return seeking assets, although a small proportion of risk controlling assets are held.

• Expected average return 7.9% p.a.
• Standard deviation 10.9%
• Probability of negative annual return 18.8%.

Default

The growth option is the default option of the Plan. If members eligible to take up member investment choice do not select and investment option, the default will be applied.

Investment fees

The CIR for accounts invested in the Growth Option are net of tax and net actual investment costs. For the Growth Option the investment management costs are estimated to be approximately 0.50% 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.