Investment & performance

Performance

Performance as at 31 December 2016

Investment option Quarter Financial year to date 1 year 3 years (annualised) 5 years (annualised)
Cash 0.38% 0.81% 1.73% 1.91% 2.28%
Default 2.60% 5.43% 5.97% 7.36% 9.82%

Past performance is not necessarily an indication of future returns.

Financial year performance as at 30 June 2016

Investment option 1 year 3 years (annualised) 5 years (annualised) 10 years (annualised)
Cash 1.79% 1.99% 2.54% 3.61%
Default 1.90% 8.42% 8.24% 5.49%

Past performance is not necessarily an indication of future returns.

Calculation of performance and earning rates

Investment performance for each investment option is calculated after fees and taxes. Past performance is no indication of future performance. Investment performance is calculated based on the actual value of investment option assets as at the end of the quoted performance period and is indicative only of the performance that a member achieves on their investment. These performance figures are based on final valuations as at period end.

Earning rates are needed for daily member transactions and will determine the actual performance a member achieves based on the timing of their individual transactions. The earning rates are determined based on the best available information at the time they are declared. Valuations are fed into the earning rates calculation as soon as practical after they are received. Using earning rates to calculate an investment performance figure for the performance periods above will provide similar but not identical rates to the published investment performance figures.

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