New investment option: 'Defensive Growth'
05/07/2010

We are very pleased to announce a new and innovative investment option, ‘Defensive Growth’. This new investment option is the direct result of member feedback and the changing financial climate. 

The Defensive Growth option has been specifically created to adapt to changing investment market conditions, by harnessing the growth of stronger times, and offering greater protection and comfort when markets are weaker. It is the first new investment option Telstra Super has offered since 2004. Since then, investment markets have gone through a volatile period and the performance of the whole financial system has changed. 

Defensive Growth is uniquely structured for members who might be looking to access their super in the short and medium term, whilst still participating in capital growth through the exposure to growth assets. This is reflected in the asset allocation ranges of the option, which allow for greater flexibility in buying and selling assets depending on how investment markets are performing at any one time. 

The table below shows the asset allocation ranges for our 4 diversified options and highlights the flexible ranges that the new option offers:

Asset class       Growth option Balanced option   Defensive Growth option Conservative option
Return objective CPI + 4% CPI + 3% CPI + 2% CPI + 2%
Australian Shares 25% - 45% 20% - 40% 0% - 60% 10% - 20%
International Shares 20% - 40% 15% - 30% n/a 5% - 20%
Listed Property 0% - 15% 0% - 10% n/a 0% - 10%
Australian Fixed Interest 0% - 10% 5% - 20% 0% - 30% 10% - 35%
Private Equity 0% - 8% 0% - 5% n/a n/a
Cash 0% - 10% 0% - 20% 0% - 30% 10% - 50%
International Fixed Interest 0% - 10% 5% - 20% 0% - 30% 5% - 25%
Infrastructure 0% - 6% 0% - 5% 0% - 30% 0% - 10%
Direct Property 0% - 10% 0% - 10% 0% - 30% 0% - 10%
Hedge Funds 0% - 5% 0% - 5% n/a 0% - 10%
Credit n/a n/a 0% - 40% n/a

Chief Executive Martin Crowe said considerable background and research work had gone into the option’s development.
“While our long-term results have been sound, the reality is that many of our members want an investment option that has flexibility and adapts to changing markets", he said. “Defensive Growth aims to provide members with more certainty in the short term when deciding how they will invest their retirement savings.”

Members wishing to invest in this option can make an investment switch through SuperOnline or by completing an Investment Choice form (60 kb) (Telstra Super RetireAccess members should complete a different form (58 kb)). 

 

* Past performance is not a reliable indicator of future performance.