1. Cash Option
This option has no exposure to growth assets (equities), which minimises the risk of fluctuating returns. Over the long term, returns are expected to be low.
10-year investment objective
To earn an investment return of 1.2% pa above the rate of inflation over rolling 10-year periods.
Performance over 10 years
As the first VicSuper Pension benefit plan was introduced on 1 April 2000, the 10-year performance for this option is not yet available.
Performance over 5 years
The compound average net earning rate over 5 years to 30 June 2009 is 6.08% pa.
Likelihood of fluctuations in annual investment returns
This option has a low probability of experiencing fluctuations in investment returns in any one year. The higher the likelihood of fluctuations in annual investment returns, the greater the likelihood of negative returns.
Important information
- Past performance is not a reliable indicator of future performance.
- The investment objective for this option changed on 1 July 2005 and 20 September 2007.
- Objectives are what VicSuper aims to achieve for each investment option; they’re not predictions or forecasts of likely returns.
VicSuper Pensions benefit plans are:
- VicSuper Commutable Pension
- VicSuper Non-Commutable Pension
- VicSuper Term Allocated Pension (closed to new members)
- VicSuper Transition to Retirement Term Allocated Pension (closed to new members).
As VicSuper Term Allocated Pension was introduced on 1 July 2005, the 30 June 2005 net earning rate does not apply for this benefit plan: Only the year-ended 30 June net earning rates for 2006, 2007, 2008 and 2009 apply.
VicSuper Non Commutable Pension and VicSuper Transition to Retirement Term Allocated Pension commenced on 1 December 2005. The net earning rate for 1 December 2005 to 30 June 2006 was 3.28%.
VicSuper Term Allocated Pension and VicSuper Transition to Retirement Term Allocated Pension closed to new members on 20 September 2007.
| Year Ended | Gross investment return % | Adjustment | Net earning rate % |
|---|---|---|---|
| 30 June 2005 | 5.54 | 0.00 | 5.54 |
| 30 June 2006 | 5.74 | 0.00 | 5.74 |
| 30 June 2007 | 6.43 | 0.00 | 6.43 |
| 30 June 2008 | 7.38 | 0.00 | 7.38 |
| 30 June 2009 | 5.31 | 0.00 | 5.31 |
| Cash % | 100 |
|---|