Conservative
The Conservative option in detail - for pension members
Return objective
- To maximise long-term investment returns, subject to constraints aimed at limiting the risk of loss of capital.
- To outperform an average annual return of CPI plus 2.5% p.a. net of tax, investment and administration fees over rolling 10-year periods.
Risk profile
Offers the likelihood of higher long-term investment returns than cash with greater fluctuations from year to year. Capital invested in this option is not guaranteed. This option is likely to produce a negative return in 1 to 2 years in every 20.
Risk level:
Low to medium
Investor profile
Will suit investors looking for lower volatility in returns, but who are prepared to accept some exposure to growth assets.
Minimum suggested time frame for holding the investment is 3 years.
Investment allocation
| Asset mix | Benchmark % | Permitted range % |
| Australian shares | 12 | 5 – 25 |
| Overseas shares | 12 | 0 – 20 |
| Property | 6 | 0 – 10 |
| Alternative assets | 10 | 0 – 20 |
| Fixed interest | 20 | 10 – 40 |
| Enhanced cash | 30 | 10 – 40 |
| Cash | 10 | 0 – 20 |
The Trustee may adjust the asset mix or vary the investment strategy from time to time. This could include varying the mix between growth assets and defensive assets.
If you choose this option, you may need to consider whether medium and long-term returns with this option are likely to be high enough to ensure your superannuation grows adequately to meet your retirement income goals.
