MARF has four (4) investment options for you to choose from, designed to meet different investment objectives. This range of options has been chosen to cater for different types of investors who have different investment needs.
The options are:
High Growth
Balanced
Australian Shares
Conservative
These options provide access to the various asset classes, including property securities, Australian and international shares, cash, fixed interest etc. Each option invests in these areas to varying degrees depending on whether the focus is on growth, securing capital or a balance between these investment objectives.
The mix of investments used varies according to the objective of each option. There is a risk that your investment in an option will fall in value from time to time.
Each investment option has different investment objectives (goals) and strategies (ways of achieving those goals).
Asset allocation benchmarks are in essence a target position. Although the investment mix can change significantly and quickly, depending on what is happening in the markets, this benchmark should be the investment mix of the investment options.
All investments placed within each of the investment options are made by investing directly in the underlying assets or through managed funds chosen by the Investment Manager.
When you apply for membership of MARF, you must nominate your investment choice. If you do not select an available option, or your choice is unclear, your investment will be allocated to the default investment strategy, which is 100% Balanced.
You can choose to invest in one, some or all of these options. You can change (called “switching”) investment options at any time; however any change to your existing investment allocation will only take effect on the first working day of the following month. For example: an investment switching request received on 30th June will be processed on the first working day in July being the following month. There is no charge for switching investment options.
Switches between investment options will be transferred out at the unit price of the investment option you are transferring out of and accepted at the unit price of the investment option you are transferring into.
To make a switch, simply complete the Investment Choice Application Form and enter your investment allocation percentage, ensuring that it totals to 100%. Your future contributions will then be invested into your newly selected investment option(s) along with your existing member balance. We will send you a switch advice confirming the details.
You should consult a licensed investment adviser before making any investment decisions.
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High Growth
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Balanced
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General Objective
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Aims to provide a net return after tax and investment costs equal to or better than inflation plus 3.5 % p.a. when measured over any 8 year period.
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Aims to provide a net return after tax and investment costs equal to or better than inflation plus 3% p.a. when measured over any 8 year period.
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Asset Allocation
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Cash, Fixed Interest, Property, Australian Shares, International Shares, Alternative Assets
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Cash, Fixed Interest, Property, Australian Shares, International Shares, Alternative Assets
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Asset Allocation Benchmarks
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80% Growth
20% Defensive
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60% Growth
40% Defensive
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Investor Time Horizon
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8 years or more
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8 years or more
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Risk of negative return in any single year
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Less than one in three
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Less than one in four
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Likelihood of return exceeding investment objective over investor time horizon
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80%
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80%
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Asset Allocation 31/07/2011
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Cash
Fixed Interest
Property
Australian
Shares
International Shares
Alternative Investments
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19.0%
0.0%
4.7%
46.0%
25.1%
5.2%
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Cash
Fixed Interest
Property
Australian Shares
International Shares
Alternative Investments
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26.4%
8.5%
4.6%
34.2%
16.6%
9.7%
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Australian Shares
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Conservative
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General Objective
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Aims to provide a net return, after tax and investment costs, equal to or better than inflation plus 4 % p.a. when measured over any 8 year period.
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Aims to provide a net return after tax and investment costs equal to or better than inflation plus 1% p.a. when measured over any 5 year period.
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Asset Allocation
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Australian Shares
Cash
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Cash, Fixed Interest, Australian Shares, Alternative Assets
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Asset Allocation Benchmarks
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95% Growth
5% Defensive
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20% Growth
80% Defensive
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Investor Time Horizon
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8 years or more
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5 years or more
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Risk of negative return in any single year
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Less than two in five
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Less than one in twenty
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Likelihood of return exceeding investment objective over investor time horizon
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80%
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80%
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Asset Allocation 31/07/2011
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Cash
Fixed Interest
Property
Australian
Shares
International Shares
Alternative Investments
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4.8%
0.0%
0.0%
95.2%
0.0%
0.0%
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Cash
Fixed Interest
Property
Australian Shares
International Shares
Alternative Investments
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53.1%
13.4%
0.0%
19.2%
0.0%
14.3%
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Performance of the Investment Options
The table below shows the returns of each investment option. This is the net return of the underlying assets, after allowance for fees and taxes, in each of the past five financial years.
The net return of each investment option is allotted to member’s account balances via the applicable unit price for that investment option. The table also shows the average return over the 5 year period to 30 June 2011.
Investment Option Performance
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INVESTMENT
OPTION
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RETURN FOR FINANCIAL YEAR ENDED*
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5 YEAR COMPOUND AVERAGE *
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30/06/2011
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30/06/2010
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30/06/2009
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30/06/2008
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30/06/2007
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BALANCED
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6.04%
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8.35%
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-14.03%
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-10.56%
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17.11%
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0.68%
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HIGH GROWTH
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1.36%
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5.94%
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-12.88%
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-14.00%
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15.27%
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-1.50%
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CONSERVATIVE
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4.24%
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2.61%
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-0.43%
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-6.75%
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12.43%
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2.23%
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AUSTRALIAN SHARES
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2.46%
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7.94%
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-9.31%
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-18.49%
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22.78%
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0.08%
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* Return figures quoted relate to the accumulation investment options
Past performance should not be taken as an indication of future performance.