Super Toolbox
The Conservative Option
Strategic Asset Allocation as at 1 November 2011 | Range | Actual Asset Allocation as at 31 January 2012* | |
|---|---|---|---|
Target Return Portfolio | 22.5% | 15-30% | 27.00% |
Cash | 29.5% | 20-40% | 27.80% |
Australian Fixed Interest | 19.0% | 5-25% | 17.90% |
International Fixed Interest | 10.0% | 5-25% | 9.40% |
Australian Shares | 12.0% | 0-20% | 11.30% |
International Shares (developed overseas shares and emerging market shares) | 7.0% | 0-20% | 6.60% |
Objective: The Conservative Option seeks stable returns in the short to medium term through reduced exposure to risk. The objective is to out-perform (after fees and tax) the Consumer Price Index increase by 3 per cent a year over rolling five-year periods.
Strategy: This option seeks return stability in the short term, with a moderate expected return.
Level of risk: Medium. This option has an estimated probability of a negative return in two years out of every 20 years. It has exposure to specific risk, market risk, currency risk, liquidity risk and credit risk. Nevertheless, it is expected to exhibit lower volatility in returns compared with the Balanced, Growth and Target Return Options.
Typical investor: Members who are able to take on an average level of risk.
It is important to note that the actual asset allocation for the Conservative Option may differ from its strategic asset allocation because of market fluctuations from time to time, new investment opportunities and irregular levels of cash flow. For example, when the share market falls, the proportion of the asset allocation in the Conservative Option to equities will decrease and the allocation to other asset classes in the option will correspondingly increase.
While the Trustee seeks to ensure that variations between the actual and strategic asset allocations of the Conservative Option are managed within these ranges, in times of extreme market volatility the divergence between the actual and strategic asset allocations can be quite significant.
Performance Crediting Rates
For the latest crediting rates, please refer to the crediting rates
For any queries, please call us on 1300 362 415