6. Equity Growth Option
This option has a 100% allocation to growth assets (equities) and a high to very high risk of fluctuating returns. Over the long term, returns are expected to be high to very high.
10-year investment objective
To earn an investment return of 6% 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 2.55% pa, which is below the objective of 9.17% pa.
Performance over 5 years
The compound average net earning rate over 5 years to 30 June 2009 is 2.58% pa.
Likelihood of fluctuations in annual investment returns*
This option has a high to very 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 | 14.35 | 1.54 | 12.81 |
| 30 June 2006 | 20.64 | 1.74 | 18.90 |
| 30 June 2007 | 22.20 | 1.74 | 20.46 |
| 30 June 2008 | -13.40 | -1.98 | -11.42 |
| 30 June 2009 | -23.29 | -2.67 | -20.62 |
| Equities % | |
|---|---|
| Listed shares | |
| Australian | 25.5 |
| International (partly hedged) | 58.2 |
| Emerging markets | 5.5 |
| Private equity | 10.8 |
The benchmark asset allocation and investment objective for this option changed on 1 July 2002. The investment objective also 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.