Balanced option
The Balanced option in detail - for pension members
Return objective
- 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
Risk profile
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.
Risk level:
Medium to high
Investor profile
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 Allocation
| 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.
