7. Equity Growth Sustainability Option
This option has a 100% allocation to growth assets (equities) in companies that rate as having the best sustainabilty business strategies in their industry sector; and has 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
Not available as this option was introduced on 17 December 2001 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 3.69% 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 | 13.84 | 1.48 | 12.36 |
| 30 June 2006 | 20.96 | 1.81 | 19.15 |
| 30 June 2007 | 20.27 | 1.52 | 18.75 |
| 30 June 2008 | -13.64 | -2.18 | -11.46 |
| 30 June 2009 | -16.84 | -1.98 | -14.86 |
| Equities % | |
|---|---|
| Listed shares | |
| Australian | 32.1 |
| International (partly hedged) | 61.5 |
| Private equity | 6.4 |
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.