2. Capital Secure Option
This option has a 20% allocation to growth assets (equities) and a low to moderate risk of fluctuating returns. Over the long term, returns are expected to be low to moderate.
10-year investment objective
To earn an investment return of 2% pa (after tax) above the rate of inflation over rolling 10-year periods.
Performance over 10 years
Not available as this option was introduced on 1 July 2003 and therefore does not have a 10-year history.
Performance over 5 years
The compound average net earning rate over 5 years to 30 June 2009 is 4.78% pa.
Likelihood of fluctuations in annual investment returns*
This option has a low to moderate probability of experiencing fluctuations in investment returns in any one year.
| Year Ended | Gross investment return % | Less tax on investment return % | Net earning rate % |
|---|---|---|---|
| 30 June 2005 | 9.10 | 1.27 | 7.83 |
| 30 June 2006 | 8.13 | 1.12 | 7.01 |
| 30 June 2007 | 8.61 | 1.04 | 7.57 |
| 30 June 2008 | 2.28 | 0.26 | 2.02 |
| 30 June 2009 | -0.27 | -0.01 | -0.26 |
| Equities % | |
|---|---|
| Listed shares | |
| Australian | 5.7 |
| International (unhedged) | 11.8 |
| Emerging markets | 0.8 |
| Cash % | 39.9 |
| Fixed Interest % | |
| Australian | 9.7 |
| International (fully hedged) | 14.7 |
| Property % | |
| Commercial property | 5.9 |
| Infrastructure | 7.2 |
| Ecosystem services | 4.3 |
The benchmark asset allocation and the investment objective for this option changed on 1 July 2005. Performance shown is based on the asset allocation applicable at the time. Past performance is not a reliable indicator of future performance. Objectives are what VicSuper aims to achieve for each investment option; they're not predictions or forecasts of likely returns.
* The higher the likelihood of fluctuations in annual investment returns, the greater the likelihood of negative returns.