Investment Choice
The Investment Strategies
Growth
If you do not make a choice, your Member benefit will continue to be invested in the Growth Strategy which is the default.
Unit price as at 03 December 2008 - $1.675979
History of Growth Strategy Unit Price
Outline
This strategy invests mainly in assets with growth characteristics (including Private Equity, Infrastructure and Uncorrelated Alpha products) with some investment in property, debt instruments and cash. This strategy currently has a bias towards listed equity markets. This bias towards market generated returns is being reduced through a greater exposure to alternative asset classes such as Private Equity, Infrastructure, Property and Uncorrelated Alpha Products such as hedge funds.
Investment objective
Achieve absolute returns of 10% (net) per annum over most rolling 5 year periods.
Level of risk
Moderate. The likelihood of a negative return is approximately 1 year in 7.
Target Asset Allocation
Investor suitability
This strategy may be suitable if:
- You have more than six years until you need your super; and
- You wish to achieve an attractive return over the longer term and are able to tolerate a reasonably high level of variability in returns over the short term.
Asset Allocation
| Asset | Current (as at 30 June 2007 ) |
Target | Range |
|---|---|---|---|
| Cash | 2% | 2% | 0-20% |
| Debt Instruments | 7% | 10% | 5-15% |
| Property | 6% | 8% | 5-12% |
| Australian Shares | 34% | 20% | 15-40% |
| Private Equity | 14% | 10% | 5-20% |
| International Shares | 24% | 20% | 15-40% |
| Infrastructure | 8% | 14% | 5-15% |
| Uncorrelated Alpha (inc Hedge Funds) |
5% | 7% | 0-8% |
| Alternative Debt | 0% | 9% | 0-10% |
The target asset allocation represents the long-term position of the Growth Strategy once the change in the investment strategy is fully implemented. However, it is a characteristic of investments in the alternate asset classes that it will take some time for suitable investments to be identified and placed. During the transition period, the growth option will maintain higher exposures to listed markets which will be sold down progressively as investment opportunities in alternative asset classes arise.
The investment ranges around each asset class allow the portfolio to make active investment decisions and respond appropriately to changing market and economic condition.
As a general rule the four investment options (other than Growth) will be balanced to the long-term asset allocations for those strategies on a weekly basis. However, exposure to particular asset classes in the Growth Strategy (in which over 90% of Members moneys is invested) will vary within the permitted asset allocation ranges.
Actual allocations may change from time to time to ensure that the investment objectives of the option are achieved. Details of any variations will be posted on this website.
Unit Price History in detail
Management Expense Ratio (MER)
The MER for the Growth Strategy is 0.4077% (effective 3 November 2008).
The MER is the ratio of investment expenses and Trustees management costs as a proportion of the Net Asset Value
The MER reflects known actual investment costs for the financial year to date together with a provision for those costs that are not known such as taxation and the valuation of certain assets. These costs are deducted before unit prices are declared. The MER is used to determine daily unit prices.
The Indirect Cost Ratio (ICR) similarly reflects the ratio of investment expenses and trustee management costs as a proportion of the Net Asset Value
The ICR for the Growth Strategy at 30 June 2007 was 0.7668%.
Investment managers
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