Investment & performance

Options

Product Dashboard as at 30 June 2014

Default Investment option

Return

10 year annualised net return is 6.49%.

Level of investment risk

Medium to High Risk
Negative returns expected in 3 to 4 out of every 20 years.

Return target

CPI + 3.5% per year over a 10 year period (net return). Future returns cannot be  guaranteed.

Statement of fees and other costs

$385 per year
Fees and other costs for a representative member.

Comparison between return target and return

Year ending Net return performance Moving average return target (10 years) Moving average return
2014 11.50% 7.10% 6.50%
2013 14.36% 7.20% 6.80%
2012 1.79% 7.20% 5.60%
2011 7.22% 7.40% 4.80%
2010 10.50% 7.70% 4.20%
2009 -15.33% 7.70% 4.70%
2008 -1.94% 7.60% 7.40%
2007 14.10% 7.20% 8.80%
2006 13.10% 7.10% 9.10%
2005 13.89% 7.00% 8.70%

Past performance is not necessarily an indication of future returns.

Target asset allocations

Asset class Allocation
Equities 53.00%
Property 13.00%
Infrastructure 2.00%
Fixed interest 15.00%
Other 14.00%
Cash 3.00%

Target asset allocations range

The Default Fund investment option has specific target asset allocations to each asset class which are monitored for market movements within the following target asset allocation ranges.

InvestmentTarget asset allocationTarget range
Cash 3% 0-65%
Fixed interest 15% 0-65%
Equities 53% 15-75%
Property 13% 5-25%
Infrastructure 2% 0-20%
Commodities 0% 0-15%
Other 14% 0-30%
Foreign currency hedge ratio 0% 0-100%

Investment disclosures

The assets of PSS are pooled together with the assets of other schemes administered by the Commonwealth Superannuation Corporation. See investment disclosure on the CSC website for information about investment managers and top equity holding.

Explanation of terms

Net return

Net returns (target or actual) show returns (expected or actual) after investment, administration and advice fees, costs and taxes.

Moving average return

Refer to the Australian Prudential Regulation Authority (APRA) Reporting Standard SRS 700.0 (available on the APRA website) for the moving average return methodology. 

Statement of fees and other costs

This shows the annual amount a representative member pays in fees and costs. A representative member is a member who is fully invested in the option, who does not incur any activity fees during a year and who has an account balance of $50,000 throughout that year. Investment gains/losses on the $50,000 are ignored. This amount does not take into account any insurance costs, transactional account fees (eg investment switch fees) or the PSS operational risk reserve. For a full list of fees please see the PSS Product Disclosure Statement (PDS).

Target asset allocation

This shows the weighting to each asset class for the investment option. This is a target as outlined in our investment strategy and may not reflect the actual asset allocation for the option.

How do performance and earnings affect your benefit

Fund earnings affect the member and productivity components, as well as any amounts transferred into the CSS (known as accumulation components). The earnings applied to your account will either be positive or negative in line with the investment performance of your chosen option. If you have a productivity component that was accrued prior to 30 June 1990 (commonly referred to as interim or unfunded productivity), it will be credited with earnings based on the performance of your chosen investment option.

The impact of Fund earnings on your final benefit will depend on your mode of exit from the CSS:

If you claim your benefit as a contributing member

If you claim your CSS benefit as a contributor on the basis of age, invalidity or involuntary retirement, your indexed pension, the employer financed part of your benefit, will not be affected by investment performance. It will be determined by a formula based on your age, final salary and contributory membership. As your accumulation components are affected by Fund earnings, any lump sum benefit or additional pension you take will be affected.

If you claim your benefit as a deferred benefit member

When you claim your deferred benefit, your indexed pension, the employer financed part of your benefit, will be affected by investment performance as it is based on a percentage of your accumulated basic contributions. As your accumulation components are affected by Fund earnings, any lump sum benefit or additional pension you take will also be affected.

If you claim your benefit as an associate member

If you are an associate member, the most significant part of your benefit will not be affected by investment performance. It will be determined based on the value of the employer (untaxed) financed benefit at the time you became an associate member, adjusted by the long-term Treasury Bond Rate. However, the accumulation components of your benefit, which are refunded as a lump sum, will be affected by Fund earnings

More information

See the PSS Product Disclosure Statement and Investment Options and Risk booklet for further information about the Default Fund investment option.