Balanced option

 

Investment target

The Balanced option targets to invest approximately 70% in growth assets and 30% in defensive assets.

Investment objective

Investment objective (after fees and taxes over rolling 10-year periods) - to outperform the annual rate of inflation (CPI) by around 2.75% pa.

Suitable for

Most suitable for members who are willing to accept a medium to high risk of a negative return in any one year.

Risk versus return

This option has significant emphasis on growth assets with the aim of achieving higher returns, together with some lower-risk defensive assets to reduce the short-term risks associated with growth assets. It offers a higher expected long-term return than the Moderate option. A negative annual return is anticipated on average 3-4 times every 20 years but negative returns may be more or less frequent.

Target asset allocation

Pie-chart_balanced.jpg

Performance

Balanced Investment return to 30 June 2017
Option 3 years 5 years 10 years
Accumulation 6.99% 9.45% 4.39%
Pension 7.50% 10.61% 4.75%

Refer to the investment performance page for the most recent investment performance figures.

Refer to the Investments Supplement for more information on investment options.

 

Your options in detail

Australian Shares option

This option targets to invest 100% in growth assets.

International Shares option

This option targets to invest 100% in growth assets.

Growth option

This option targets to invest approximately 90% in growth assets and 10% in defensive assets.

Balanced option

This option targets to invest approximately 70% in growth assets and 30% in defensive assets.

Moderate (MySuper) option

This option invests approximately 96% of funds according to the target asset allocation of 70% in growth assets and 30% in defensive assets and the remainder towards the MVP approach.

Conservative option

This option targets to invest approximately 30% in growth assets and 70% in defensive assets.

Cash Enhanced option

This option invests 100% in defensive assets.

Cash option

This option invests 100% in defensive assets.

Fixed Term Investment option

This option invests 100% in defensive assets and is similar to the Cash and Cash Enhanced investment options which are lower risk and may provide lower average long-term returns as they invest fully in defensive assets.