What is it?
This option is made up of a diverse mix of all major asset classes.
Who should invest in the Conservative Balanced option?
The Conservative Balanced option is designed for members with a medium-term investment horizon (5 years or longer) who are willing to weather increased volatility. If you are looking to see large potential gains and are willing to see a negative return, the Conservative Balanced option may be appropriate for you.
What is the investment objective?
The Conservative Balanced option seeks to achieve an investment return, after taxes and fees, of at least 3% per annum above inflation over rolling 10-year periods.
How long should I invest in the Conservative Balanced 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 the Conservative Balanced option, the suggested minimum investment term is at least 5 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 Conservative Balanced option is Medium to High (negative annual return likelihood in 4 to less than 6 out of every 20 years). That means, in any given year, there is a 20-30% chance for a negative return.
The Conservative Balanced option is primarily invested in Australian and International equity markets with a mixture of other assets, including Property and Infrastructure.
Fees and other costs
The Conservative Balanced option fees will be:
- Investment management fee of 0.42%pa
- Indirect cost ratio of 0.37%pa.
For each $50,000 invested, members can expect to pay $598 in investment fees, administration fees and indirect costs for this option each year. These fees however are 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.