MAKING A CHOICE
How and where you invest your super can have a significant impact on your final superannuation balance at retirement, so we encourage you to take the time to understand where your money is invested. You must always remember you have the flexibility to change your investments according to your investment strategy.
Club Plus Super allows you to choose from a number of investment options depending on your investment strategy.
You can choose from the following investments:
Cash Option
Conservative Option
Balanced Option
Growth Option
High Growth Option
Australian Share Option
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CASH OPTION
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Overview
The Cash Option is designed to suit members who do not wish to see any reduction in the capital value of their account balance and who accept they may receive a lower long-term return compared to other options. It may be suitable for someone near retirement who intends to use their retirement payout for capital expenditure rather than longer term investment. It may be suitable for someone with an investment horizon of at least three (3) years.
Whilst this option is designed to consistently provide a positive return on investment, long-term investment may result in a low accumulation of retirement savings.
Investment Objective
The long term objective of this option is to achieve a return after deduction of fees and taxes, of at least the average return on retail cash management trusts after 15% tax and fees. Retail cash management trusts are investment products which hold short term securities such as 90 day bank bills and short term Government securities. The average returns on these trusts is published monthly in the Reserve Bank Statistical Bulletin in table F04 under “Cash Management Trusts”.
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CONSERVATIVE OPTION
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Overview
The Conservative Option is designed to suit members who have a conservative outlook (ie they do not like investments that are volatile) to investing their superannuation. It may be suitable for someone with an investment horizon of three (3) years or more.
The Conservative Option has also been designed to minimise the risk of a negative return over the three (3) year time horizon however negative annual returns are still a possibility. It is estimated that this investment option will have a positive return nine out of every ten years.
Investment Objective
The long term objective of this option is to achieve a return after the deduction of fees and taxes, of at least 2% pa above CPI inflation over a member’s working life.
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BALANCED OPTION
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Overview
The Balanced Option has been designed as a mix of investments that will provide a steady rate of return to members with a moderate level of volatility. This option may be suitable for someone with an investment horizon of five (5) years or more.
There is some degree of volatility with this option, and it is estimated that this investment option will have a positive return eight out of every ten years.
Investment Objective
The long term objective of this option is to achieve a return after the deduction of fees and taxes, of at least 3% pa above CPI inflation over a member’s working life. The CPI is the Consumer Price Index for all capital cities and is a commonly adopted measure of price inflation.
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GROWTH OPTION
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Overview
The Growth Option has been designed to suit members who have a longer term investment time horizon of seven (7) years or greater, and can absorb the volatility associated with a growth oriented investment.
This option is likely to be more volatile than the Balanced Option, and it is estimated that this investment option will have a positive return seven out of every ten years.
Investment Objective
The objective of this option is to achieve a return after the deduction of fees and taxes, of at least 4% pa above CPI inflation over the member’s working life. The CPI is the Consumer Price Index for all capital cities and is a commonly adopted measure of price inflation.
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HIGH GROWTH OPTION
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Overview
The High Growth Option has been designed to suit members who have a longer-term investment time horizon of seven (7) years or greater, and can absorb the volatility associated with a growth oriented investment.
This option is likely to be more volatile than the Growth Option, and it is estimated that this investment option will have a positive return six out of every ten years.
Investment Objective
The objective of this option is to achieve a return after the deduction of fees and taxes, of at least 5.5% pa above CPI inflation over the member’s working life. The CPI is the Consumer Price Index for all capital cities and is a commonly adopted measure of price inflation.
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AUSTRALIAN SHARES OPTION
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Overview
The Australian Shares Option gives Club Plus members the opportunity to have their funds invested with investment managers who invest solely in the Australian share market. This option may be suitable for someone with an investment time horizon of ten (10) years or more.
There is a high degree of volatility with this option, and it is estimated that this investment option will have a positive return six out of every ten years.
Investment Objective
The long term objective of this investment option is to achieve a return after the deduction of fees and taxes that exceeds the return of the Australian share market less 15% tax and manager’s fees. The return of the Australian Share market is measured by the percentage change in the S&P ASX 300 Accumulation Index. The Australian Share managers used by Club Plus are active managers which generally hold only 50 to 100 of the companies included in the index. Therefore the return achieved by these managers will not exactly match the index.
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