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% 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 4.88% pa, which exceeds the objective of 4.17% pa.
Performance over 5 years
The compound average net earning rate over 5 years to 30 June 2009 is 5.15% pa.
Likelihood of fluctuations in annual investment returns*
This option has a low 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 | 5.54 | 0.83 | 4.71 |
| 30 June 2006 | 5.74 | 0.88 | 4.86 |
| 30 June 2007 | 6.43 | 0.98 | 5.45 |
| 30 June 2008 | 7.38 | 1.14 | 6.24 |
| 30 June 2009 | 5.31 | 0.82 | 4.49 |
| Cash % | 100 |
|---|
The investment objective for this option changed on 1 July 2005. 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.