Assertive investment option

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

General aim
To maximise long-term investment returns accepting that there may be fluctuations in returns over shorter periods.

More specifically, the investment objective for the Assertive option is to achieve net returns that exceed CPI increases by at least 4.0% pa over rolling three year periods.

Comparison with other choices
The Assertive option has a stronger emphasis on shares and property than the Enhanced Cash, Conservative and Moderate options and therefore carries more investment risk than those options. 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 a higher investment return over longer periods. The probability of the Assertive option earning a negative return is approximately one year in four.

Benchmark holdings
  

Asset class Benchmark (%) Permitted range (%)
Australian shares 38 30-50
Overseas shares 25 20-40
Property 12 0-20
Alternatives (Growth) 10 0-20
Total Growth Assets 85 75-100
Alternatives (Defensive) 8 0-15
Fixed interest 4 0-20
Cash 3 0-20
Total Defensive Assets 15 0-20

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 higher investment returns over the long term. They need to satisfy themselves that they have the time to ride out very wide investment fluctuations – even watching their super go through large variations in performance.

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