Our new investment option: Balanced Growth Managed

July 28 2024

Significant event notice

At ESSSuper, your retirement outcomes are always our top priority. That's why we offer a variety of customised investment options suitable for every stage of your superannuation journey.

We're pleased to introduce an exciting new investment option available to all members with an Accumulation Plan, Beneficiary Account or Income Stream: Balanced Growth Managed.

What is Balanced Growth Managed?

Balanced Growth Managed is a new investment option that aims to help members effectively increase their super for retirement while delivering stable returns through diversification.

It aims to deliver moderately high returns, targeting 3.25% above the rate of inflation. For example, if the consumer price index (CPI) averages 3.00% per year over ten years, Balanced Growth Managed aims for an average return of 6.25% per year during that period.1

Balanced Growth Managed: Investment profile summary
Suitability Members with a minimum investment timeframe of 10 years who are prepared to accept a high amount of volatility in pursuit of high long-term capital growth.
Objective2
Accumulation Plan, Beneficiary Account, Working Income Stream		 To provide a return of 3.25% p.a. after fees and taxes above the rate of inflation over a 10-year period.
Objective2
Retirement Income Stream		 To provide a return of 3.75% p.a. after fees and taxes above the rate of inflation over a 10-year period.3
Minimum suggested investment timeframe 10 years
Risk band4 6 – HIGH
Estimated number of negative annual returns4 4 to less than 6 over any 20-year period

You can view the complete investment profile for this option on our Balanced Growth Managed web page.

Balanced Growth Managed includes a range of higher risk, higher return asset types (including Australian and international shares) along with a range of lower risk defensive assets to support stability. It's also an actively managed product, which allows us to make strategic adjustments and timely responses to market changes.

Choosing superannuation products with higher average annual returns and low fees can significantly enhance your super over time. However, it's always important to remember that investment markets can fluctuate, so returns can be positive or negative and are not guaranteed.

Who is Balanced Growth Managed suitable for?

Balanced Growth Managed could be a good option for you if:

  • you want a mix of growth assets (including Australian and international shares) and lower-risk defensive assets for stability
  • you're looking for a product that aims for higher returns (3.25% above the rate of inflation over ten years5), and
  • you have longer investment horizons (10 years or more).
How do I know which investment strategy is right for me?

Unsure which investment options are right for you? Take a look at the Investment Risk Profiler on the Calculators webpage.

More information on all our available investment options can be found:

For general information, you can book a virtual appointment with one of our Member Education Consultants to learn more about any of our products. If you're seeking personal advice relating to your financial situation or needs, our qualified Financial Advisers can help.6

To request an appointment, please call us or use our online enquiry form.

How do I change my investment strategy?

If you have an Accumulation Plan, Beneficiary Account or Income Stream account, you can change your investment strategy at any time. You can move all or part of your super to any of our investment products.

To change your investments:

We're here to help

You can also find a copy of this significant event notice in your Members Online inbox.

If you have any questions, please contact us on 1300 650 161 (Emergency Services members) or 1300 655 476 (State Super members) between 8:00am and 5:00pm Monday to Friday, or email us at info@esssuper.com.au

Warm regards

Duncan Winton
Group Executive, Strategy, Brand & Insights

 

1. Investment returns cannot be guaranteed as investment markets can be volatile. As a consequence, returns can be positive or negative. Past investment performance is not a reliable indicator of future performance.

2. The investment objectives are not a promise or guarantee of any particular benefit. They represent a benchmark against which the Board monitors the performance of the investments of the Fund.

3. For Retirement Income Stream accounts, the target return is 3.75% above the rate of inflation. The target returns are higher as Retirement Income Stream accounts are free of investment income tax.

4. The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option(s).

5. ESSSuper does not guarantee any particular rate of return, the performance of any investment or the repayment of capital from any investment. Investment is subject to investment risk and other risks. Past performance is not an indication of future performance.

6. ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

Emergency Services Superannuation Board (ABN 28 161 296 741) (ESSB), the Trustee of the Emergency Services Superannuation Scheme (ABN 85 894 637 037) (ESSSuper).

Investment returns are not guaranteed. All investments carry risks and past investment performance gives no indication of future performance. Benefits in ESSSuper's Accumulation Plan, Income Streams and Beneficiary Account products are not guaranteed or underwritten by the Victorian Government or ESSSuper, and ESSSuper does not come under the jurisdiction of the Australian Financial Complaints Authority. ESSSuper comes under the jurisdiction of the Victorian Civil and Administrative Tribunal. ESSSuper is an exempt public sector superannuation scheme, and is not regulated by APRA or ASIC, but is governed by Victorian legislation.

The information contained in this document is of a general nature only. It should not be considered as a substitute for reading ESSSuper's Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au/pds or by calling 1300 650 161.