What is it?
Our Capital Stable investment option is made up of a diverse mix of asset classes and is designed to provide a moderate return on investment while significantly reducing the risk of a negative return by selecting more conservative assets including Cash and Term Deposits, Credit Income and Bonds.
Who should invest in the Capital Stable option?
The Capital Stable option is designed for members with a short-to-medium investment horizon (3 years or more) who would like to see a modest return on investments while significantly reducing their exposure to potential losses.
What is the investment objective?
The Capital Stable option seeks to achieve an investment return, after taxes and fees, of at least 1.5% per annum above inflation over rolling 10-year periods.
How long should I invest in the Capital Stable option?
Because there is the opportunity for the value of investments to go down in the short term, we recommend a minimum investment term to avoid short-term market volatility.
For our Capital Stable option, the suggested minimum investment term is 3+ years.
A risk estimate is the potential for a negative return in any given year over a 20-year rolling period.
While our goal is to provide members with a positive return, external factors can influence investment performance, including broader economic trends. Risk is defined by how often an investor should expect to see a negative return out of every 20 years.
The risk estimate for the Capital Stable option is Low to Medium (negative annual return likelihood in 2 to less than 3 out of every 20 years). That means, in any given year, there is a 10-15% chance for a negative return.
The Capital Stable option is predominantly invested in conservative asset classes like Bonds, Credit Income and Cash and Term Deposits. While there is some exposure to growth assets like Australian and International Shares, it is significantly less than in the Conservative option.
Fees and other costs
The Capital Stable option fees will be:
- Investment management fee of 0.35%pa
- Indirect cost ratio of 0.25%pa.
For each $50,000 invested, members can expect to pay $503 in investment fees, administration fees and indirect costs for this option each year. These fees are however subject to change.
How can I change my investment choices?
You can change your investment mix at any time. Just login to your Members online account and click ‘Your account’ from the options in the left hand menu.
Alternatively, you can download and complete our Investment Switch form.
Need help making an investment choice?
Making an investment choice can be difficult. Download the "Your investment options super fact sheet" for more information on all of our investment options available to you.
Take advantage of our free, over-the-phone advice service and obtain a personal recommendation on which of our investment options may be right for you.