Investment Option – Conservative

This option targets to invest approximately 30% in growth assets and 70% in defensive assets.

 

Investment objective (after fees and taxes over rolling 10-year periods)

To outperform the annual rate of inflation (CPI) by around 1% pa.

 

Suitability

Most suitable for members for whom the low to medium risk of a negative return in any one year is an important consideration.

 

Minimum suggested investment timeframe

Approximately five years

 

Standard Risk Measure

Risk Band: 3
Risk Label: Low to Medium

 

Risk versus return

This option provides a reasonable level of short-term security with the potential for some capital growth in the long term. It offers a lower risk of short-term losses but lower expected returns.

A negative annual return is anticipated on average 1-2 times every 20 years but negative returns may be more or less frequent.

 

Target Asset Allocation