Structured Options
You can choose either one or a mix of five options:
Cash Plus
Capital Stable
Balanced
Diversified
High Growth
Features
- Investments are diversified across asset classes to match different investor needs
- The Trustee determines an appropriate asset allocation to meet set investment objectives
- The options are not actively managed – so the asset mix of the options is not normally changed in response to market conditions.
| |
Cash Plus |
Capital Stable |
| Objective |
Maintain the purchasing power of the funds invested by earning a slightly higher return than cash while minimising the risk of any capital loss. |
A stable pattern of returns that at the same time maintains a low probability of a negative return in any one year. |
| Target Return |
Outperform the UBSA Bank Bill Index over the short-term (rolling two year periods). |
CPI + 1% pa over the medium-term (rolling 4 year periods). |
| Asset Allocation |
100% defensive
Cash plus a small allocation to Defensive Alternatives. Cash consists of a portfolio of securities with a low level of interest rate risk. It includes securities which either have, on average, a short-term to maturity (less than 12 months), for example, bank deposits, bank bills and commercial paper, or securities which have a floating interest rate that resets over short-term periods (less than 12 months), for example, residential mortgage backed securities. The portfolio also includes an allocation to Government and corporate bonds where the interest rate risk has been hedged to a floating rate. |
65% defensive, 35% growth
Mainly bonds and cash, with smaller proportions of shares, property, infrastructure and alternative assets. |
| Time Horizon |
Short: 1 to 2+ years |
Short to medium: 3+ years |
| Risk of negative return |
Very low: approximately 2 years in a 35 year working life. |
Low: approximately 4 years in a 35 year working life |
| |
Balanced |
Diversified |
High Growth |
| Objective |
A good balance of risk and return by investing in approximately equal proportions of growth assets and defensive assets. |
Strong returns over the longer term by investing in a diversified mix of assets weighted towards shares and other growth assets. |
Maximise returns over the long-term by investing predominantly in growth assets. |
| Target Return |
CPI + 2% pa over the medium-term (rolling 4 year periods). |
CPI + 3% pa over the long-term (rolling 5 year periods). |
CPI + 4% pa over the very-long term (rolling 7 year periods). |
| Asset Allocation |
45% defensive, 55% growth
A balanced mix of shares and bonds, property, infrastructure, alternative assets and cash. |
20% defensive, 80% growth
Mainly shares, property, infrastructure and alternative assets, with some bonds and cash. |
5% defensive, 95% growth
Shares, property, infrastructure and alternative assets. |
| Time Horizon |
Medium to long: 3 to 5+ years |
Long: 5+ years |
Long: 7+ years |
| Risk of negative return |
Moderate: Approximately 7 years in a 35 year working life |
High: Approximately 9 years in a 35 year working life |
High: Approximately 9 years in a 35 year working life |