Conservative

March 27 2017

Strategic asset allocations

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

Australian shares 6% (0-15%)
Overseas shares 9% (0-15%)
Property 7.5% (2.5-12.5%)
Infrastructure 5% (0-10%)
Alternative strategies 3% (0-6%)
Multi-asset strategies 5.5% (0-10%)
Fixed interest 20.5% (10-40%)
Cash 43.5% (30-60%)

Suitability: This option may be suitable if you aim to see your capital protected from inflation and are prepared to experience some short term volatility in order to gain longer term capital growth.
Objective*: To provide a return of 2% (2.5%) p.a. (after fees and taxes) above the rate of inflation over a 3 year period.

(Figures in brackets are for Income Streams)
Growth assets to
defensive assets:
37% growth and 63% defensive
Minimum suggested
investment timeframe:
3 years
Risk band#: 3 - LOW to MEDIUM
Estimated number
of negative
annual returns#:
1 to less than 2 over any 20 year period

Investment Option Performance

Conservative
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Income Streams
2014/15 5.03 5.03 5.74
2013/14 6.74 6.74 7.67
2012/13 7.46 7.46 8.71
2011/12 5.51 5.51 6.25
2010/11 6.94 6.94 8.12
3 years - compound average p.a. 6.40 6.40 7.37
5 years - compound average p.a. 6.33 6.33 7.29

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.