Investment & performance


Product Dashboard as at 30 June 2015

Default Investment option


10 year annualised net return is 6.33%.

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
2015 12.10% 7.00% 6.30%
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 45.00%
Property 10.00%
Infrastructure 1.00%
Fixed interest 14.00%
Other 15.00%
Cash 15.00%

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 15% 0-65%
Fixed interest 14% 0-65%
Equities 45% 15-75%
Property 10% 5-25%
Infrastructure 1% 0-20%
Commodities 0% 0-15%
Other 15% 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

The impact of Fund earnings on your PSS benefit differs depending on your membership type – contributing, preserved benefit or associate.

If you are a contributing member

The defined part of your benefit is unaffected by earnings. However, amounts transferred into the PSS and any government co-contributions are affected by earnings of the Default Fund, which can be positive or negative.

None of your benefit including these amounts can be switched.

The level of earnings from the Default Fund can affect the tax you must pay when you claim your final PSS benefit. For example, these earnings may affect the amount of tax deducted from your fortnightly pension payments if you choose a lifetime CPI-indexed pension.

This is because the level of earnings changes how the three components of your PSS benefit work: the employer-financed, productivity and member components. Positive earnings increase the taxed member and productivity components and decrease the untaxed employer-financed component. In this case, the component of your final benefit already taxed increases, meaning positive earnings can have the effect of decreasing how much tax you may pay after you leave the PSS.

Learn more about how super is taxed and tax on PSS benefits.

If you are a preserved benefit member

Fund earnings have a more direct impact on your benefit. The accumulation components of your benefit will be affected by earnings, which can be either negative or positive in line with the investment performance of your chosen option – the Default Fund or Cash Investment Option.

The accumulation components are your member contributions (the member component), the post 1 July 1990 productivity component and any other amounts that are from a taxed source in your account, such as transfers paid into the PSS and government co-contributions.
The employer-financed component of your benefit, as determined at the time your benefit is preserved, moves in line with the Consumer Price Index (CPI). This is a cost of living index, measuring the rate of inflation in the prices of goods and services.

If you are an associate member

Fund earnings also have a more direct impact on your benefit. The accumulation components of your benefit will be affected by earnings, which can be either negative or positive in line with the investment performance of your chosen option – the Default Fund or Cash Investment Option.

The value of the taxed component of your benefit (determined when you became an associate member) isn’t affected by earnings. Its value is adjusted by the long-term Treasury bond rate (treasury bonds are medium to long-term debt securities issued by the government).

More information

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