Conservative, Growth, or Focused Growth Fund?
* See page 11 for further information.
**The risk category for each investment option is calculated based on the volatility of past returns over five years. See OMI for more information.
***Estimate for the year ahead. Annual fund charges for the fund are made up of: the management fee; the supervisor fee; other administration charges. For details regarding the actual fund charges, see the latest fund update here.
Choosing this investment option will automatically select your investment in our funds based on your age and will reduce your risk as you get older.
This investment option works in the same way as the Stepping Stones investment option but it will keep you invested in a higher proportion of growth assets for longer.
Target investment mix: Each fund has a long-term target investment mix. The actual investment mix will vary from the target investment mix as we pursue tactical investment opportunities, or as we seek to protect asset values in periods of market volatility. For further information about the funds’ investment activities see the Statement of Investment Policy and Objectives (SIPO) here.
Income assets: Cash and fixed interest assets are referred to as income assets because they generate income in the form of interest payments. Income assets are typically less volatile than growth assets, so while the returns will go up and down (and be negative at times) they won’t usually move to the same degree as growth assets. Over the long-term, income assets will usually provide lower returns than growth assets.
Growth assets: Equities and property and infrastructure are referred to as growth assets because they have greater potential to achieve capital growth over the medium to long-term than income assets. They also involve more risk. Typically, the returns of growth assets will fluctuate more than income assets, and growth assets are more likely to experience periods of negative returns.
The Manager takes a broad view of what constitutes property and infrastructure assets. The Manager’s definition expands to include aged care, telecommunications, transport and logistics companies.
International equities are made up of underlying funds that invest predominantly in equities and direct investment in international stocks. However, the Conservative Fund will not invest in underlying funds. See the SIPO for more information here.