High Growth

February 23 2017

Strategic asset allocations

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

Australian shares 21% (10-40%)
Overseas shares 31.5% (15-45%)
Property 11% (5-20%)
Infrastructure 10% (0-20%)
Alternative strategies 7.5% (0-15%)
Multi-asset strategies 9% (0-20%)
Fixed interest 10% (0-20%)
Cash 0% (0%)

Suitability: This option may be suitable if you are prepared to accept moderate to high volatility of capital in pursuit of high long-term capital growth.
Objective*: To provide a return of 4.5% (5.0%) p.a. (after fees and taxes) above the rate of inflation over a 7 year period.

(Figures in brackets are for Income Streams)
Growth assets to
defensive assets:
95% growth and 5% defensive
Minimum suggested
investment timeframe:
7 years
Risk band#: 6 - HIGH
Estimated number
of negative
annual returns#:
4 to less than 6 over any 20 year period

Investment Option Performance

High Growth
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Income Streams
2014/15 9.53 9.53 10.67
2013/14 13.32 13.32 15.07
2012/13 16.13 16.13 18.52
2011/12 4.35 4.35 4.98
2010/11 11.18 11.18 12.91
3 years - compound average p.a. 12.96 12.96 14.71
5 years - compound average p.a. 10.83 10.83 12.34

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.