Conservative
Objective To achieve, on a rolling three year basis, a rate of return competitive with other industry conservative funds, as measured by the appropriate survey undertaken by Intech Financial Services Pty Ltd.
Important Note There is no guarantee that this option will meet its objective or that the value of your superannuation will not decrease as a result of negative returns.
Comparison relative to other optionsThe Conservative option offers lower long-term investment returns and fewer fluctuations from year to year than the All Growth or Balanced options. You can generally expect to earn a positive rate of return over one year periods, as is consistent with a portfolio invested mostly in bonds with only a small proportion of shares. It is still possible however that your superannuation can reduce in value in any given year or years, but this is less likely than with the All Growth or Balanced options.
Where money is invested The Conservative option invests 32% in shares and 68% in income assets such as bonds and cash.
| Asset Mix |
Benchmark % |
Range % |
| Total Australian Shares |
14 |
12-16 |
|
Australian Shares
|
7 |
5-9 |
|
Australian Opportunities
|
7 |
5-9 |
| Total International Shares |
18 |
16-20 |
|
International Shares
|
4.5 |
2.5-6.5 |
|
Global Opportunities
|
4.5 |
2.5-6.5 |
|
International Shares - $A Hedged
|
4.5 |
2.5-6.5 |
|
Global Opportunities - $A hedged
|
4.5 |
2.5-6.5 |
|
Emerging Markets
|
0 |
0 |
International Property
Securities - $A Hedged |
0 |
0 |
| Total Growth Assets |
32 |
30 – 34 |
| Australian Bonds |
30 |
28 – 32 |
International Bonds - $A
Hedged |
18 |
16 – 20 |
| Inflation Linked Bonds |
10 |
8 – 12 |
| Australian Cash |
10 |
8 – 12 |
| Total Income Assets |
68 |
66 – 70 |
The intended mix of investments are shown in the above table, however, the Trustee may adjust the mix from time to time as investment conditions may change.
Suitability (risk tolerance)Generally an investor in this type of option is likely to be looking for fairly stable returns over the medium to long term. They know long term investment returns are likely to be lower than the higher risk options of All Growth and Balanced but they also know there is less chance of reducing the value of their superannuation in the short term.
Historically, this type of option has occasionally produced negative returns. However, past performance is not an indication of future performance and therefore future investment returns may differ from past investment returns and may be positive or negative.