Growth option

 

Investment target

The Growth option targets to invest approximately 90% in growth assets and 10% 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 3.5% pa.

Suitable for

Most suitable for members whose most important consideration is high returns and who are willing to accept a high risk of a negative return in any one year.

Risk versus return

This option has a very strong emphasis on growth assets with a view to achieving higher returns and therefore carries more investment risk. The value may vary significantly up or down over the short term. However, high investment returns are generally expected over longer periods. A negative annual return is anticipated on average 4-6 times every 20 years but negative returns may be more or less frequent.

Managed Volatility Process (MVP)

The Fund offers a feature known as the ‘Managed Volatility Process’ (MVP) in the Growth option, if you select Growth MVP. The MVP is designed to more actively manage volatility during periods of extreme volatility.

The Growth MVP targets to invest 95% of funds according to the target asset allocation of the standard option, and 5% of funds to manage volatility through a futures overlay.

Target asset allocation

Pie-chart_growth.jpg

Performance

Growth Investment return to 30 June 2017
Option 3 years 5 years 10 years
Accumulation 8.11% 11.13% 3.89%
Pension 8.77% 12.58% 4.40%

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.