The Balanced index option in detail - for pension members
- To achieve adequate long-term investment returns* using simple lower-cost investment strategies.
- 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 an emphasis on shares and property to achieve higher returns, but includes some lower-risk assets to reduce short-term risks. The strategy is passively invested which is lower-cost but provides diversified exposures to selected listed asset classes like Australian shares, International shares, Australian Property Securities and Australian Cash. This option is likely to produce a negative return in 4 to 6 years in every 20 years.
Will suit investors looking for moderate to high returns over the long term, but who are prepared to accept fluctuations in investment performance over shorter periods. The strategy is suited to investors seeking to minimise costs, although without utilising active managers seeking to achieve outperformance above market benchmarks.
Minimum suggested time frame for holding the investment is 5 years.
|Asset mix||Benchmark %||Permitted range %|
|Australian shares||34||10 – 45|
|Overseas shares||24||10 – 45|
|Property||10||0 – 20|
|Fixed interest||24||0 – 50|
|Cash||8||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.