Conservative Option

Investor profile

This investment option is likely to suit members seeking medium term growth of their superannuation with low risk.

Objective

  • The Primary Investment Objective is to achieve annual investment returns which on average exceed the Consumer Price Index (CPI) plus 1.5% after tax and fees, over a rolling five-year period.
  • The Secondary Objective is to achieve investment returns exceeding the average performance of superannuation funds with a similar proportion of growth assets over a rolling three and five-year period, ideally with a rate of return in the upper quartile as compared with an appropriate industry survey.
  • The investment risk objective is to achieve a positive return 18.4 out of every 20 years (this equates to a negative return in 1.6 out of every 20 years).

Investment Strategy

Maintain asset allocation within the ranges and appoint investment managers or select direct investments in accordance with asset allocation guidelines.

Minimum Investment Timeframe

Medium to long term: if you choose this investment option be prepared to stay invested in it for more than 3 years before it meets its objectives.

Standard Risk Measure 1

Risk Band: 3
Risk Label: Low to medium
Expected number of negative annual returns over any 20-year period: 1 to 2

Strategic Asset Allocation

Sector Range % Benchmark %
Australian Equities

6 - 16

11

International Equities

7 - 17

12

Real Assets 2

0 - 20

10

Growth Alternatives 3

0 - 7

2

Total Growth Assets

25 - 45

35%

Fixed Interest 4

29 - 49

39

Defensive Alternatives 5

1 - 11

6

Cash

0 - 40

32

Total Defensive Assets

55 - 75

65%

Indirect Cost Ratio: 0.63%

2 Includes direct property and unlisted infrastructure. 

3 Includes diversified growth funds and private equity.

4 Includes Australian and international bonds, hybrids, convertible preference shares, convertible notes and income securities.

5 25% Bloomberg AusBond Composite Bond 0+Yr Index, 40% Barclays Capital Global Aggregate (Hedged AUD), 35% (50% Bloomberg AusBond Bank Bill / 50% Bloomberg AusBond Composite Bond 0-3 Yr Index).

5 year returns