Defensive

May 24 2017

Strategic asset allocations

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

Australian shares 3% (0-10%)
Overseas shares  4% (0-10%)
Property 3% (0-10%)
Infrastructure 3% (0-10%)
Alternative strategies 0% (0%)
Multi-asset strategies 2% (0-10%)
Fixed interest 15% (0-40%)
Cash 70% (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 of growth assets. Your priority remains the preservation of capital.
Objective*: To provide a return of 1% (1.5%) p.a. (after fees and taxes) above the rate of inflation over a 1 year period.

(Figures in brackets are for Income Streams)
Growth assets to
defensive assets:
15% growth and 85% defensive
Minimum suggested
investment timeframe:
1 year
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 Income Streams
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. 4.35 4.35 5.06
5 years - compound average p.a. NA NA NA

The Defensive option commenced on 1 April 2011. 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.