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Investments

Conservative

Investment strategy

To invest in a diversified range of investments, with approximately 30%
in shares, growth property and alternative investments, and approximately 70% in cash, fixed income and defensive property.

Growth..........30%
Defensive......70%

Investment objective

To achieve a return (net of tax and investment expenses) that exceeds the increase in the CPI by at least 2% p.a. over moving 5 year periods, and to limit the probability of achieving a negative return to approximately 1 year in 14.

Risk of short-term negative return

Low The return obtained each year will fluctuate and will be negative from time to time. There is a low chance that the return in any 1 year will be negative.

Investment fee#

0.48%

Please note; between October 2011 and mid 2012, the Fund will transition to our new Strategic Asset Allocation (SAA) for all Pre-mixed investment options, including our Conservative option as shown below. These changes will be measured and take into account any shift in market conditions. They also aim to reduce our exposure to the current volatility experienced in global investment markets.

#The investment fee is a measure of the fees deducted from investments. These fees include the cost of the Fund’s investment managers, custodian and investment advisor and certain other costs of the Fund. The investment fee is the total of these costs, divided by the net asset value of the Fund. These fees are deducted directly from the investment earnings before they are allocated to member accounts. They are therefore not deducted from your super account directly.