Growing defensively

Meanwhile, in response to post-GFC anxiety, Telstra Super has launched its defensive growth option for members with a somewhat diminished risk appetite but who still need a more flexible asset allocation. Jim Christensen, CIO of the fund, says the return objective is the rate of inflation plus 2 per cent each year, with an investment timeframe of two to six years.The strategic asset allocation of thee option will be: Australian equities 40 per cent, credit 20 per cent, infrastructure 10 per cent, direct property 10 per cent, international fixed interest 6 per cent, Australian fixed interest 14 per cent, and no allocation to cash.

Crowe says the fund has been working for a “considerable” time on the option to address the needs of members “who have a lower appetite for risk when deciding how they will continue to invest their retirement savings”. He says the flexibility of the option is its biggest point of difference with “more fluid adjustments” and “some degree of flexibility to pursue good investment opportunities as they emerge”.