Basic Growth

September 24 2017

Strategic asset allocations

As at 1 July 2017
(asset allocation ranges are shown in brackets)

Australian shares2 24.5% (5-35%)
International shares2 36.0% (10-45%)
Property 8.0% (5-15%)
Infrastructure 8.0% (0-15%)
Multi-asset strategies 10.0% (0-30%)
Credit 4.0% (0-15%)
Sovereign Bonds 7.5% (0-20%)
Cash 2.0% (0-15%)

Suitability: This option may be suitable if you are interested in long term capital growth, can accept higher levels of short term volatility and are particularly cost sensitive.
Objective* for Accumulation Plan Beneficiary Account & Working Income Stream: To provide a return of 3.5% p.a. after fees and taxes above the rate of inflation over a 10 year period.
Objective* for Retirement Income Stream: To provide a return of 4.0% p.a. after fees above the rate of inflation over a 10 year period.
Minimum suggested
investment timeframe:
10 years
Risk band#: 6 - HIGH
Estimated number
of negative
annual returns#:
4 to less than 6 over any 20 year period

 


* 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 of the Fund.

# 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.

2100% passively invested against the S&P/ASX200 index net dividends reinvested for Australian Shares against the MSCI World ex-Australia net dividends reinvested for International Shares.