If you are trying to reduce risk but want to maintain some exposure to growth investments, then our Conservative investment option might be the one for you. It is a Diversified investment option, which means we invest in both conservative and growth asset classes with a bias towards conservative. The target asset allocation in Conservative is 70% invested in diversified fixed interest and cash and 30% in Australian and overseas shares and in property. You should learn all you can before investing in Conservative by looking at our information about its underlying asset classes plus any other educational material and/or professional advice you can source outside of Equipsuper.
Investment objective*
Achieve a net return of at least 2% p.a. above inflation (measured by Australian Consumer Price Index (CPI) over a rolling three-year period. Within that timeframe you will usually experience some years that are better than others, and may even experience negative returns in some years.
Strategy
Invest mainly in fixed interest securities and cash, which are expected to deliver stable returns over the long term. Invest the balance in equities and property.
Benchmark Allocations^
The asset allocation for each asset may vary from time to time within the permitted ranges in the table below:
| Asset class |
Benchmark allocation |
Permitted range |
| Australian equities |
10% |
5-15% |
| Overseas equities |
10% |
5-15% |
| Property |
10% |
5-15% |
| Growth alternatives |
- |
- |
| Defensive alternatives |
- |
- |
| Diversified Fixed Interest |
45% |
40-50% |
| Cash |
25% |
20-30% |
|
 |
10-Year Performance - Conservative
This is how the Conservative option performed against its objectives and other funds over the past ten years to 30 June 2011.
Compound average rate of net annual earnings for periods ending 30 June 2011.
| Net annual returns# |
Superannuation |
Pensions |
| 30 June 2011 |
7.2% |
8.1% |
| 30 June 2010 |
7.2% |
8.5% |
| 30 June 2009 |
0.6% |
0.7% |
| 30 June 2008 |
0.9% |
0.8% |
| 30 June 2007 |
8.2% |
9.6% |
| 30 June 2006 |
8.2% |
9.4% |
| 30 June 2005 |
8.5% |
9.1% |
|
* The investment objectives are not forecast or predictions, they simply represent a benchmark against which the trustee monitors performance.
^ The benchmark allocations for this investment option changed from 2 October 2006.
# Note that past performance is no indication of future performance. |
