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Defensive

April 08 2020

Strategic asset allocations

As at 1 April 2020
(asset allocation ranges are shown in brackets)

Australian shares 3.0% (0-10%)
International shares  4.0% (0-10%)
Property 3.0% (0-10%)
Infrastructure 4.0% (0-10%)
Multi-asset strategies 7.0% (0-25%)
Credit 5.0% (0-10%)
Sovereign Bonds 13.0% (0-40%)
Cash 61.0% (50-90%)

Suitability: This option may be suitable if you are prepared to accept a measured amount of risk by investing in a small amount growth assets. Your priority remains the preservation of capital.
Objective* for Accumulation Plan, Beneficiary Account & Working Income Stream: To provide a return of 1.0% p.a. after fees and taxes above the rate of inflation over a 2 year period.
Objective* for Retirement Income Stream: To provide a return of 1.5% p.a. after fees above the rate of inflation over a 2 year period.
Minimum suggested
investment timeframe:
2 years
Risk band#: 1 - VERY LOW
Estimated number
of negative
annual returns#:
Less than 0.5 over any 20 year period

Investment Option Performance

Defensive
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Retirement Income Stream
2018/19 3.55 3.55 4.21
2017/18 2.98 2.98 3.39
2016/17  2.92 2.92 3.42
2015/16  2.75 2.75 3.24
2014/15 3.54 3.54 4.11
2013/14 4.46 4.46 5.12
2012/13 5.06 5.06 5.95
2011/12 4.91 4.91 5.57
2010/11 1.06 1.06 1.23
3 years - compound average p.a. 3.15 3.15 3.67
5 years - compound average p.a. 3.15 3.15 3.67

The Defensive option commenced on 1 April 2011, therefore the 2010/11 return is for a 3 month period only. 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 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.