Conservative Option

Suitable for members seeking returns above inflation over a medium period of at least five to seven years. With less volatility experienced than the Balanced options, it aims to maintain consistent returns by investing in a diversified mix of asset classes split between defensive and growth assets with a lower level of risk.

Option summary

Strategic asset allocation

Investment performance

Account availability/ Commencement	Super and Income accounts / 1 July 2003
Investment objective	Super accounts and Pre-Retirement Income accounts: Achieve returns net of fees and tax at least equal to CPI + 2.0% over rolling five year periods Post-Retirement Income accounts: Achieve returns net of fees and tax at least equal to CPI + 2.5% over rolling five year periods
Likelihood of a negative annual return	Less than two (1.27) in every 20 years
Standard Risk Measure

	Asset Allocation	Investment Range
Australian Equities	12.5%	2 - 23%
International Equities	11.5%	1 - 22%
Alternative Growth	8.0%	3 - 13%
Property	12.0%	7 - 17%
Infrastructure	12.0%	7 - 17%
Australian Fixed Interest	8.0%	0 - 16%
International Fixed Interest	8.0%	0 - 16%
Alternative Defensive	8.0%	0 - 16%
Cash/Enhanced Cash	20.0%	12 - 28%
Currency exposure	9%	0 - 19%

	12 months to 30 June
	Super accounts	Income Accounts – Pre-Retirement	Income accounts – Post-Retirement
2019	7.10%	6.61%	7.14%
2018	7.34%	8.14%	7.29%
2017	8.97%	9.84%	9.84%
2016	4.54%	5.22%	5.22%
2015	7.16%	7.95%	7.95%

Five year compound average to 30 June 2019
Super accounts	Income Accounts – Pre-Retirement	Income accounts – Post-Retirement
7.00% p.a.	7.37% p.a.	7.64% p.a.