Balanced

March 27 2017

Strategic asset allocations

Effective from 1 January 2016
(asset allocation ranges are shown in brackets)

Australian shares 11% (5-20%)
Overseas shares  16% (5-25%)
Property 10% (5-15%)
Infrastructure 5.5% (0-10%)
Alternative strategies 7.5% (0-15%)
Multi-asset strategies 12.5% (0-20%)
Fixed interest 25% (5-60%)
Cash 12.5% (0-25%)

Suitability: This option may be suitable if you want a growth component in your investments to help protect capital against inflation, some income to smooth returns but can accept short-term volatility of capital.
Objective*: To provide a return of 3% (3.5%) p.a. (after fees and taxes) above the rate of inflation over a 5 year period.

(Figures in brackets are for Income Streams)
Growth assets to
defensive assets:
66.5% growth and 33.5% defensive 
Minimum suggested
investment timeframe:
5 years
Risk band#: 4 - MEDIUM
Estimated number
of negative
annual returns#:
2 to less than 3 over any 20 year period

Investment Option Performance

Balanced
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Income Streams
2014/15 6.56 6.56 7.41
2013/14 9.17 9.17 10.46
2012/13 10.13 10.13 11.73
2011/12 5.37 5.37 6.15
2010/11 8.49 8.49 9.91
3 years - compound average p.a. 8.61 8.61 9.85
5 years - compound average p.a. 7.93 7.93 9.11

Past performance is not a reliable indicator of future performance and should not be relied upon for making investment decisions.

 


* The investment objectives are not a promise or guarantee of any particular benefit. They represent a benchmark against which the Board monitors the performance of the investments in the Plan.

# The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s. Refer to www.esssuper.com.au/performance for investment returns. Past performance is not a reliable indicator of future performance and should not be relied upon for making investment decisions.