The Growth option targets to invest approximately 90% in growth assets and 10% in defensive assets.
Investment objective (after fees and taxes over rolling 10-year periods) - to outperform the annual rate of inflation (CPI) by around 3.5% pa.
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
|Growth||Investment return to 30 June 2017|
|Option||3 years||5 years||10 years|
Refer to the investment performance page for the most recent investment performance figures.
Refer to the Investments Supplement for more information on investment options.