Growth (default option)

April 24 2017

Strategic asset allocations

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

Australian shares 16% (5-25%)
Overseas shares 23.5% (10-35%)
Property 10% (5-15%)
Infrastructure 8.5% (0-15%)
Alternative strategies 8% (0-15%)
Multi-asset strategies 12.5% (0-20%)
Fixed interest 17.5% (0-40%)
Cash 4% (0-15%)

Suitability: This option may be suitable if you are most interested in long term capital growth and can accept short term volatility of capital.
Objective* To provide a return of 4% (4.5%) p.a. (after fees and taxes) above the rate of inflation over a 5 year period.

(Figures in brackets are for Income Streams)
Growth assets to
defensive assets:
83.5% growth and 16.5% defensive
Minimum suggested
investment timeframe:
5 years
Risk band#: 5 - MEDIUM to HIGH
Estimated number
of negative
annual returns#:
3 to less than 4 over any 20 year period

Investment Option Performance

Growth
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Income Streams
2014/15 8.24 8.24 9.29
2013/14 12.20 12.20 13.82
2012/13 14.13 14.13 16.44
2011/12 4.90 4.90 5.50
2010/11 9.57 9.57 11.13
3 years - compound average p.a. 11.50 11.50 13.14
5 years - compound average p.a. 9.76 9.76 11.17

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.