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  • Moderate (default)
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Moderate investment option (default)

Please read all of the following information about this investment option.

General aim
To maximise long-term investment returns while containing fluctuations in returns over shorter periods.

More specifically, the investment objective of the Moderate option is to achieve net returns that exceed CPI increases by at least 4.0% pa over rolling three year periods.

Comparison with other choices
The Moderate option has more emphasis on growth assets to achieve higher returns over the longer term. However, some lower risk defensive assets are included with a view to reducing the short-term risks associated with growth assets.

You can generally expect an increased likelihood of higher long-term returns and more fluctuations than the Conservative option, but lower returns and smaller fluctuations than the Assertive option. In other words your superannuation may reduce in value in some years and have quite strong growth in other years. The probability of a negative return in the Moderate option is approximately one year in four.

Benchmark holdings
  

Asset class	Benchmark (%)	Permitted range (%)
Australian shares	33	20-50
Overseas shares	24	10-40
Property	12	0-20
Alternatives (Growth)	6	0-20
Total Growth Assets	75	60-75
Fixed interest	7	0-30
Cash	5	0-30
Alternatives (Defensive)	13	0-20
Total Defensive Assets	25	15-45

What are the investments within 'alternative' assets?
Within the 'alternatives' asset class are different types of investments.  Broadly these are categorised as follows:
- Private equity (Growth asset);
- Infrastructure equity (Growth asset);
- Infrastructure debt (Growth or Defensive asset depending on structure and gearing);
- Hedge fund, single or constrained number of strategies or largely directional (Growth asset);
- Hedge fund, diversified fund of funds or multi-strategy with conservative management (Growth asset);
- Non-core property (Growth asset);
- Commodities trading (Growth asset);
- Distressed debt (will depend on the manager process and sector but tending to Growth asset).

Suitability
Many investors in this option are likely to be looking for moderate to high investment returns over the medium to long term. They still have the time to ride out wide investment fluctuations and may feel more comfortable with this option because the fluctuations are less significant than for the Assertive, Aggressive or shares options.