Return objectives
Each investment option is designed to generate an expected annual investment return over rolling 10 year periods. For members in the saving phase of super (VicSuper Scheme and VicSuper Beneficiary Account members), return objectives are set after tax has been deducted and above the annual rate of increase in inflation. For members in the pension or drawdown phase of super, return objectives are set above the annual rate of increase in inflation; no tax is payable in a pension.
We believe 10 years is an appropriate timeframe to measure superannuation investment performance. Superannuation is a long-term investment, and over the short to medium term returns often vary, in particular from the asset class of equities or shares. A period of 10 years helps to smooth out any variation in returns.
Investment return objectives are what VicSuper aims to achieve for each VicSuper investment option; they are not predictions or forecasts of likely returns. Return objectives are predictive in character; may be affected by inaccurate assumptions or by known or unknown risks and uncertainties; and may differ materially from results ultimately achieved. For a more detailed explanation of investment return objectives and investment return, visit the glossary section of VicSuper's website.