Ethically Minded

September 22 2019

Strategic asset allocations

As at 1 July 2019
(asset allocation ranges are shown in brackets)

Australian shares 25.0% (15-40%)
International shares 33.0% (15-48%)
Property 9.0% (0-20%)
Infrastructure 4.0% (0-7%)
Alternative strategies 2.0% (0-6%)
Credit 10.0% (0-18%)
Sovereign Bonds 15.0% (0-27%)
Cash 2.0% (0-20%)

Suitability: This option may be suitable if you are interested in long term capital growth, can accept short term volatility and are seeking an investment return that excludes some investments on ethical grounds.
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

Investment Option Performance

Ethically Minded
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Retirement Income Stream
2018/19 6.89 6.89 7.64
2017/18 8.11 8.11 9.21

The Ethically Minded option commenced on 1 July 2017. 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.

1The Ethically Minded option is a single manager option currently managed on behalf of ESSSuper by AMP Capital.