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Portfolios
From 1 July 2003, the number of portfolios available to members has expanded to eight with the addition of the cash, managed
and high growth portfolios. The portfolios have been structured in order to make them easy to understand so that members are
able to invest with both clarity and confidence in the investment option they choose.
The portfolios, which are listed below, vary in their mix of defensive and aggressive assets so that the entire risk spectrum
is broadly covered. This allows you to nominate a percentage level of risk that you feel comfortable with and match it with a
portfolio by looking at the percentage of aggressive assets. For example, if you are comfortable with an exposure to aggressive
assets (or risk percentage) of 70%, then you should select the Balanced portfolio as this is the closest portfolio to that risk
percentage (see below).
Aggressive Assets include both Australian and International shares as well as property.
Defensive Assets include both Australian and International fixed interest as well as cash.
Past
investment performance is not an indication
of future performance.
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Investment Choice Portfolios - Risk Percentages
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Risk v's Return
When choosing your investment option, it is important to consider the following factors before making your selection. The
period of time of the investment. In general the higher the return of an investment, the higher the risk. Your willingness to
accept fluctuations in returns. High risk investments are more likely to experience large fluctuations over short periods of
time. You should carefully read the objective, strategy and investor profile of each portfolio to help you make your
decision.
Investment Policy
The Trustee invests the assets of the Fund with professional investment managers in accordance with the investment policy,
which has been formally set down for the Fund by the Trustee.
Diversification
Diversification is a method which is used to spread one's investment risk.
Diversification can occur by:
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Investing in different fund managers or
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Investing in different asset classes or
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A combination of both above
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This exposes an investor to both different styles of investing and also different investment cycles which can minimise the
chance of poor returns.
All portfolios (with the exception of cash) that are currently offered to members are fully diversified. That is they are
all multi manager and multi asset class options.
The aim is to achieve both strong and stable long-term results and only reputable investment managers with a proven track
record in their area of expertise are used for these portfolios.
Investment Earnings
Investment earnings credited to your account will reflect the net earning rates achieved by the respective Investment Choice
Portfolios. Earnings (net of tax and investment charges) are credited to member balances on a monthly basis. The rate used
initially is an interim rate, which is adjusted once actual net Fund Earning Rates for the month are known.
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