At a glance
Fixed interest and cash
Short term (1–2 years)
Total estimated Indirect Cost Ratio 2014/15: 0.48%
Buy spread: nil
Sell spread: nil
Inflation + 0.5% per year^
Likelihood of negative return
Nil in every 20 years
Risk levelRisk label
3Low to medium
5Medium to high
- Annual % returns
- See how your money would have grown
See how your money would have grown if invested in this option:
Amount: Invested for:
Annual returns [PDF]
About the option
This option aims to ensure the security of capital. CareSuper intends for this option to be invested in the AMP Capital Guaranteed Savings Account, managed by AMP Life Limited (AMP). AMP guarantees that capital and credited accrued interest will not be reduced by negative investment returns.
The asset allocation is determined by AMP. From time to time, funds may be invested in the term deposits of Authorised Deposit Taking Institutions. For liquidity purposes, the Trustee may hold a small allocation in cash.
This option is suitable for members seeking to maintain the capital value of their investment over any time period while earning a rate of return similar to that of bank bills or from a cash management trust.
What are the option’s objectives?
- To achieve returns after tax and fees that exceed the inflation rate (as measured by the Consumer Price Index [CPI]) by at least 0.5% per year.^
- To provide a full guarantee on capital and credited accrued interest.
- To provide ‘smooth’ returns which iron out market fluctuations and are never negative.
^Over rolling 10 year periods