The Balanced option in detail - for pension members
- To maximise long-term investment returns while containing fluctuations in returns over shorter periods.
- To outperform an average annual return of CPI plus 3.5% p.a. net of tax, investment and administration fees over rolling 10-year periods
Offers a greater emphasis on assets that are likely to achieve higher returns, but includes some lower-risk assets to reduce short-term risks. This option is likely to produce a negative return in 3 to 4 years in every 20 years.
Medium to high
Will suit investors looking for moderate to high returns over the medium to long-term, but who are prepared to accept some fluctuations in investment performance over shorter periods.
Minimum suggested time frame for holding the investment is 5 years.
|Asset mix||Benchmark %||Permitted range %|
|Australian shares||27||10 – 40|
|Overseas shares||27||10 – 40|
|Property||12||0 – 25|
|Alternative assets||20||10 – 30|
|Fixed interest||11||0 – 20|
|Cash||3||0 – 20|
The Trustee may adjust the asset mix or vary the investment strategy from time to time. This could include varying the mix between growth assets and defensive assets.