Crediting Rate 2007-2008: 8.38%
Note: The Target Return Option was introduced on 1 January 2006.

Objective: The Target Return Option seeks high long-term returns through exposure to specific risk. The objective is to out-perform (after fees and tax) the consumer price index increase plus 7 per cent a year over rolling seven-year periods.

Strategy: This option consists of a portfolio of Target Return investments that include subordinated debt, unlisted property, infrastructure, private equity and natural resources. These are typically large investments in a range of industrial sectors and geographical locations. They have long time horizons and often low liquidity. Target Return assets are usually acquired opportunistically. Hence, while the option has a 100% weighting for Target Return assets, in the event that MTAA Super would be underweight for Target Return assets, the Target Return options would be allocated to Market Linked Portfolio assets.

Level of risk: High. This option might produce negative returns from time to time. It has substantial exposure to specific risk and indirect exposure to market risk.

Typical investor: Members who are able to take on above-average risk with an investment horizon of at least five years. Members with a long-term investment horizon and a substantial existing market risk exposure.

Superannuation Rolling Crediting Rates

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