Shares Only

March 27 2017

Strategic asset allocations

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

Australian shares 40% (25-75%)
Overseas shares  60% (25-75%)
Property 0% (0%)
Infrastructure 0% (0-10%)
Alternative strategies 0% (0%)
Multi-asset strategies 0% (0%)
Fixed interest 0% (0%)
Cash 0% (0%)

Suitability: This option may be suitable if you are prepared to accept the high volatility of investing in listed investments in the 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 10 year period.

(Figures in brackets are for Income Streams)
Growth assets to
defensive assets:
100% growth
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

Shares Only
(period 1 July to 30 June)
Crediting rate % p.a. 
Accumulation Plan Beneficiary Account Income Streams
2014/15 12.13 12.13 13.98
2013/14 17.35 17.35 19.67
2012/13 23.13 23.13 27.95
2011/12 1.24 1.24 0.95
2010/11 10.68 10.68 12.42
3 years - compound average p.a. 17.45 17.45 20.40
5 years - compound average p.a. 12.67 12.67 14.65

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.