代写What is the best investment strategy?
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代写What is the best investment strategy?
What is the best investment strategy?
Unfortunately there is no one answer to this question suitable
for everyone – nor is there a “correct” answer.
Investments which generally give higher returns are usually more
volatile. Over a number of years, it may be best for you to invest
most of your superannuation contributions in shares
and property, but then, just before you retire, the share
market falls and your retirement benefit loses value!
You may then think that you should have kept contributions
in a low-risk savings account all along. But if you had done
this, in most years you would have earned less.
What should you do?
You need to make a choice that you are comfortable with.
If you’re unsure, get professional financial advice (EISS can
direct you to a financial planner if you wish). The money you
spend may save you dollars in the long run.
If you don’t make a choice, your accounts will be invested in
the Balanced Growth option. There is more information on
this option (and the others) later in this leaflet.
Investment Choice
your money...your choice.
An important part of superannuation is the way your money is invested and the investment
returns that are achieved.
All members of the Electricity Industry Superannuation Scheme (EISS) have some part of their
benefits that are affected by investment returns. You can have a say in how those parts of your
benefit are invested, and what returns your money earns. This Investment Choice leaflet gives you
the details on investment strategies and the options available.
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Four Simple Steps
Do you want to
make a choice?
Read this leaflet and
get financial advice
Your accounts will be
invested in the Balanced
Growth option
Make a choice from the
four options available
1
2
3
4
Fill out and sign an
Investment Choice form
Return the form to us at
EISS, GPO Box 4303
Melbourne VIC 3001
Forms are available at:
www.eiss.superfacts.com
in the Forms and
代写What is the best investment strategy?
Investment Strategies
There are two broad styles of investment strategy:
Growth Strategy
Growth assets are typically Australian shares, overseas shares and
property.
This type of investment carries the most short term risk, but has
potentially the highest long term return. It could be the most
appropriate strategy for those who are investing for the long term
and want to protect the buying power of their savings
against inflation.
In the short term, rates of return from growth investments can
be expected to vary widely, with a significant chance of negative
returns over a one-year period.
For those with patience and a long investment period until
retirement, growth assets are likely to produce the best results.
Defensive Strategy
On the other hand, the defensive style of investment uses
fixed-interest bonds and short-term deposits. The most defensive
investment is “cash”, where the money is normally invested shortterm
with banks and guaranteed against loss.
The risk of losing any of your original investment is extremely low,
with returns being more stable. The risk that you run with this
very conservative type of investment is that you could fail to meet
your income goals for retirement, particularly if you have a long
investment period ahead of you.
How do these styles affect your choices?
Most investment options are a mix of these two broad strategies,
ranging from all growth to all defensive.
The options available in EISS are outlined on the following pages.
What investment options are available?
There are restrictions on what choices are available, depending on
which part of the Scheme you are in (see table below).
If “All choices are available”, members can choose a combination
of options as long as they total 100%. Members must have the
same option for their account balances and future contributions.
Account-based pensioners may also choose which option their
pension payments are made from.
Investment Choice Changes
You can make up to four switches (in percentage splits only) in
any 12 month period without charge. Any additional switches
will attract a $50 fee per switch. (Division 5 members may make
investment choice changes online, other members must complete
an Investment Choice form which is available on the website).
Timing
Any switch you make will take effect from the beginning of
the next month, provided you return your form at least a
week before.
Division
Voluntary
Contributions
and Rollovers
Other Accounts
Division 2
- Lump Sum Scheme
All choices
are available
Cash or
Balanced Growth
Division 3
- Pension Scheme
All choices
are available
Balanced Growth
Division 4
- RG Scheme
All choices
are available
代写What is the best investment strategy?
inquiries@electricsuper.com.au
Contacting the Scheme
www.eiss.superfacts.com
DISCLAIMER: This document gives you some basic information to help you with the question as to what is the best investment strategy for you and tells you about your investment
options under the Electricity Industry Superannuation Scheme. However, this document is not intended as a substitute for consulting a professional financial planner. Nor should it
be the only tool you use to make general investment decisions for your future. As such, the document does not constitute the provision of investment advice by the Electricity Industry
Superannuation Board. NOV 2015
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Investment Options
Details of past investment returns for each option are shown in the EISS website. The past performance of each investment
option should not be taken as an indication of future performance.
Cash Conservative Growth
VOLATILITY / RETURN Very low volatility, lowest rate of
growth in long term
Low volatility, expected stable but
low returns
RETURN PROFILE
VOLATILITY SCALE 1 2 3 4 5 6 7 1 2 3 4 5 6 7
MOST SUITED TO Members seeking to minimise their
investment risk over the short term
Members who prefer stable but
moderate returns over the short to
medium term
INVESTMENT TIME FRAME No minimum 10 years
LIKELIHOOD OF NEGATIVE RETURN Not likely to have a negative return
1 negative year in 20, returns not
expected to show large swings
OBJECTIVE
Exceed the consumer price index
and similarly invested funds over
rolling annual periods
Exceed the consumer price index by
2% pa over three yearsrs
MANAGEMENT FEES
(AS AT 30 JUNE 2015)
0.03% (deducted from the returns
credited to your account)
0.39% (deducted from the returns
credited to your account)
STRATEGY
Fully invested in short term fixed
interest investments, and has a very
conservative investment risk profile
Around 30% invested in growth
investments, and hence has a
moderately conservative investment
risk profile
ASSET ALLOCATION AS AT
30 OCTOBER 2015
Strategic
Allocation
Australian
Shares 10%
Overseas
Shares 10%
Property 10%
Alternatives 10%
Fixed
Interest 30%
Cash 30%
Strategic
Allocation
Cash 100%
Balanced Growth (default option) High Growth
VOLATILITY / RETURN High volatility, medium growth
Highest volatility, expected higher long
term returns
RETURN PROFILE
VOLATILITY SCALE 1 2 3 4 5 6 7 1 2 3 4 5 6 7
MOST SUITED TO
Members who want reasonable
medium term returns and can put
up with large variations in the
short term
Members who want higher returns
in the long term and can put up with
large variations in the short term.
INVESTMENT TIME FRAME 10 years minimum 10 years (or more)
LIKELIHOOD OF NEGATIVE RETURN
3-4 negative years in 20, returns
may show large swings in the
short term
4-5 negative years in 20, returns may
show large swings in the short term
OBJECTIVE
Exceed the consumer price index by
3% pa over 5 years, and to exceed
the median return in the Super
Ratings Survey of Balanced Options
over 3 years
Exceed the consumer price index by
4% pa over five years
MANAGEMENT FEES
(AS AT 30 JUNE 2015)
0.68% (deducted from the returns
credited to your account)
0.71% (deducted from the returns
credited to your account)
STRATEGY
Around 70% invested in growth
assets and hence has a moderately
aggressive investment risk profile
Fully invested in growth investments,
代写What is the best investment strategy?
