Indexed Shares

Investment objective

To achieve a return (gross of tax and investment expenses) that matches the change in a 50%/50% combination of the S&P/ASX300 Accumulation Index and the MSCI World ex-Australia Total Return Index (net dividends reinvested unhedged in Australian dollars) over rolling 3-year periods.

Investment strategy

To invest totally in shares on a passive basis, with approximately half in Australian shares and half in international shares.

Strategic asset allocation
Asset classAs at 1 October 2018 %
 Passive Australian shares50 (range 48-52)
 Passive international shares50 (range 48-52)
CriterionMetric
Suggested minimum investment time frame7 years
Expected frequency of neg. annual returns in any 20-year periodApprox 6.5
Risk band**7
Risk label**Very high
Investment fee#0.11% p.a.
(0.13% p.a. gross of tax)
Indirect cost ratio^0.00% p.a.
*The risk label and band is based upon each investment option’s assumed number of negative returns over a 20-year period and grades these investment options across seven risk labels, from ‘very low risk’ (risk band 1) to ‘very high risk’ (risk band 7).
 
#The investment fee is a measure of the fees deducted from investments. These fees include the cost of the fund’s investment managers, custodian and investment advisor and certain other costs of the fund. The investment fee is the total of these costs, divided by the net asset value of the fund. These fees are deducted directly from the investment earnings before they are allocated to member accounts. They are therefore not deducted from your super account directly.
 
^The indirect cost ratio (ICR) represents estimated costs incurred by the fund’s investment managers before investment earnings are received. These costs take into account the fund’s experience in the last financial year and are not deducted from your account or from the fund’s assets. They include estimated transactional and operational costs (as detailed in our Fees and Costs booklet) and performance-related fees.