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Conservative Option

The Conservative option targets to invest approximately 30% in growth assets and 70% in defensive assets.

Investment objectiveTo achieve a rate of return that exceeds the return on the Cash option by 1.5% per year over rolling five-year periods.
Suitable forThis option may be most suitable if:
  • you expect to need your super as a cash lump sum within approximately five years; or
  • your most important consideration is a low risk of a negative return in any one year.
Risk versus returnThe Conservative option provides a moderate level of short-term security with the potential for some capital growth in the long term.
It offers lower risk of short-term losses than the Balanced or Growth options but lower expected returns.
A negative annual return is anticipated on average two years in every thirty years but negative returns may in fact be more or less frequent.
Asset mix
Growth assets Range (%) Target (%)
Australian shares 0-20 10
Overseas shares 0-20 10
Listed property 0-8 4
Direct property * 0-10 3
Private equity * 0-10 2
Growth alternatives * 0-15 1
Total growth assets 25-35 30
Defensive assets Range (%) Target (%)
Defensive alternatives * 0-20 10
Fixed interest 10-50 20
Cash enhanced Balance 40
Cash 0-10 0
Total defensive assets 65-75 70

* These assets are generally less liquid (able to be cashed) than other assets.