Smoothed

Aim

To provide a competitive growth investment with smoothed investment returns on a year-to-year basis.

When we say ‘smoothed investment returns’ we mean that an investment fluctuation reserve is used in which a portion of the Fund’s earnings are set aside in the good investment years (i.e. when returns are high) in order to supplement returns in poor investment years (i.e. when the markets may lose money).

The Fire and Emergency Services Superannuation Board reserves the absolute right at all times to determine when an investment fluctuation reserve is used for this option.

Objective

To earn at least the Consumer Price Index (CPI) plus 3% per annum over a rolling 10 year period, net of tax and fees.

Strategy

Invest approximately:

• two thirds in shares/target return assets; and

• one third in cash/fixed interest.
  

Strategic asset allocation

Australian Shares 10% - 35%

International Shares 15% - 35%

Target Return Assets 5% - 45%

Fixed Interest 5% - 40%

Cash 0% - 20%

Suitability

For members who:

• expect to have their super or pension invested for more than five years;

• would like exposure to growth assets; and

• want less ups-and-downs in their year-to-year investment returns.
  

Minimum investment time frame

Medium to long-term: if you choose this option, be prepared to stay invested in it for more than 5 years before it meets its objectives.

Expected frequency of negative annual returns

To have no more than four negative returns over any 20 year period (on average). However, historically this option has produced a smaller frequency of negative returns due to the use of an investment fluctuation reserve.

Annual Returns