Aggressive investment option

Please read all of the following information about this investment option.

General aim
To maximise long-term investment returns. More specifically, the investment objective for the Aggressive option is to achieve net returns that exceed CPI increases by at least 5.0% pa over rolling three year periods.

Comparison with other choices
The Aggressive option has the strongest emphasis on growth assets and therefore, together with the share options, carries the highest level of investment risk. The value of your super will fluctuate in the short term. However past experience indicates that you can also generally expect an increased likelihood of the highest investment return over longer periods. The probability of the Aggressive option earning a negative return is approximately one year in three.

Benchmark holdings
 

Asset class Benchmark (%) Permitted range (%)
Australian shares 45 30-60
Overseas shares 38 20-50
Property 12 0-20
Alternatives (Growth) 5 0-20
Total Growth Assets 100 100
Alternatives (Defensive) 0 0
Fixed interest 0 0
Cash 0 0
Total Defensive Assets 0 0

What are the investments within 'alternative' assets?
Within the 'alternatives' asset class are different types of investments.  Broadly these are categorised as follows:
- Private equity (Growth asset);
- Infrastructure equity (Growth asset);
- Infrastructure debt (Growth or Defensive asset depending on structure and gearing);
- Hedge fund, single or constrained number of strategies or largely directional (Growth asset);
- Hedge fund, diversified fund of funds or multi-strategy with conservative management (Growth asset);
- Non-core property (Growth asset);
- Commodities trading (Growth asset);
- Distressed debt (will depend on the manager process and sector but tending to Growth asset).

Suitability
Many investors in this option are likely to be looking for the highest investment returns over the longer term. They need to satisfy themselves that they have the time to ride out very wide investment fluctuations – even watching their super go through extreme variations in performance, including negative returns in some periods.

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