The Moderate 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.
Investment objective (after fees and taxes over rolling 10-year periods) – to outperform the annual rate of inflation (CPI) by around 2.5% pa.
Most suitable for members who are willing to accept a medium 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 and the MVP approach to manage extreme volatility. It offers a balance between expected long-term returns and the risk of a negative return in any one year.
Target asset allocation
This option invests approx. 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. The target allocation reflects 4% allocated to the MVP approach through the overlay. With the MVP approach embedded into the investment strategy, asset allocations will vary from time to time based on market conditions.
|Moderate||Investment return to 30 June 2017|
|Option||3 years||5 years||10 years|
Refer to the investment performance page for the most recent investment performance figures.
Refer to the Investments Supplement for more information on investment options.