3. Capital Stable Option
This option has a 40% allocation to growth assets (equities) and a moderate risk of fluctuating returns. Over the long term, returns are expected to be moderate.
10-year investment objective
To earn an investment return of 3% pa (after tax) above the rate of inflation over rolling 10-year periods.
Performance over 10 years
The compound average net earning rate over 10 years to 30 June 2009 is 4.56% pa, which is below the objective of 6.17% pa.
Performance over 5 years
The compound average net earning rate over 5 years to 30 June 2009 is 4.21% pa.
Likelihood of fluctuations in annual investment returns*
This option has a moderate to high 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 | 9.45 | 1.24 | 8.21 |
| 30 June 2006 | 11.43 | 1.41 | 10.02 |
| 30 June 2007 | 11.25 | 1.19 | 10.06 |
| 30 June 2008 | -1.46 | -0.20 | -1.26 |
| 30 June 2009 | -5.74 | -0.71 | -5.03 |
| Equities % | |
|---|---|
| Listed shares | |
| Australian | 11.3 |
| International (partly hedged) | 20.9 |
| Emerging markets | 0.8 |
| Private equity | 4.4 |
| Cash % | 19.6 |
| Fixed Interest % | |
| Australian | 9.8 |
| International (fully hedged) | 15.5 |
| Property % | |
| Commercial property | 7.1 |
| Infrastructure | 7.3 |
| Ecosystem services | 3.3 |
The benchmark asset allocation and investment objective for this option changed on 1 July 2002 and 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.