Investment strategies


The Scheme invests its assets with professional investment managers in a wide range of different types of investments.

These managers are overseen by the Board with the help of an investment consultant.

There are two broad styles of investment strategy:

Growth strategy


Growth assets typically are 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, as best they can, 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 term time horizon, they 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 short term with banks and guaranteed against loss.

The risk of losing any of your original investment is extremely low, with returns being stable and assured for short term needs. 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 when you have a long investment period ahead of you.



How do these styles affect your choices?


The Scheme's investment options are a mix of those two broad strategies, ranging from all growth to all defensive.

 

Electricity Industry Superannuation Board ABN 57 923 283 236 as Trustee of the Electricity Industry Superannuation Scheme.

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