Conservative option

 

Investment target

The Conservative option targets to invest approximately 30% in growth assets and 70% in defensive assets.

Investment objective

Investment objective (after fees and taxes over rolling 10-year periods) - to outperform the annual rate of inflation (CPI) by around 1% pa.

Suitable for

Most suitable for members for whom the low to medium risk of a negative return in any one year is an important consideration.

Risk versus return

This option provides a reasonable level of short-term security with the potential for some capital growth in the long term. It offers a lower risk of short-term losses but lower expected returns. A negative annual return is anticipated on average 1-2 times every 20 years but negative returns may be more or less frequent.

Target asset allocation

Pie-chart_conservative.jpg

Performance

Conservative Investment return to 30 June 2017
Option 3 years 5 years 10 years
Accumulation 4.30% 5.92% 4.20%
Pension 4.60% 6.62% 4.88%

Refer to the investment performance page for the most recent investment performance figures.

Refer to the Investments Supplement for more information on investment options.

 

Your options in detail

Australian Shares option

This option targets to invest 100% in growth assets.

International Shares option

This option targets to invest 100% in growth assets.

Growth option

This option targets to invest approximately 90% in growth assets and 10% in defensive assets.

Balanced option

This option targets to invest approximately 70% in growth assets and 30% in defensive assets.

Moderate (MySuper) option

This option invests approximately 96% of funds according to the target asset allocation of 70% in growth assets and 30% in defensive assets and the remainder towards the MVP approach.

Conservative option

This option targets to invest approximately 30% in growth assets and 70% in defensive assets.

Cash Enhanced option

This option invests 100% in defensive assets.

Cash option

This option invests 100% in defensive assets.

Fixed Term Investment option

This option invests 100% in defensive assets and is similar to the Cash and Cash Enhanced investment options which are lower risk and may provide lower average long-term returns as they invest fully in defensive assets.