Conservative Strategy
Strategic asset allocation: 21.0% liquid growth; 24.5% alternatives; 54.5% liquid defensive.
Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+1.0% p.a. over rolling 4 year periods.
Risk of negative return: Low to Medium (Risk Band 3: from 1 to less than 2 negative annual return estimated over any 20 year period). For further information about the risk measure for Conservative Strategy, please refer to the Standard Risk Measures document.
Investment time horizon: The Conservative Strategy has been designed for members with a short-term investment horizon (4 years) with little tolerance for market volatility and a preference for security.
Strategic asset allocation
| At 1 July 2018 | Dynamic asset allocation range | |
|---|---|---|
| Liquid growth | 21.0% | 13.0% - 29.0% |
| Australian equities | 8.5% | |
| International equities | 12.5% | |
| Alternatives | 24.5% | 16.5% - 32.5% |
| Property | 8.0% | |
| Alternatives - Other | 6.0% | |
| Infrastructure | 10.5% | |
| Liquid defensive | 54.5% | 46.5% - 62.5% |
| Australian fixed interest | 6.0% | |
| International fixed interest | 3.0% | |
| Defensive strategies | 0.5% | |
| Cash | 45.0% | |
| Total | 100.0% |
Note
Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Conservative Strategy is estimated to experience on average 0.5 to 1 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.
For further information about the risk measures for each strategy, please refer to SASS Fact Sheet 15: Choosing an investment strategy.