Balanced

Investment overview

Balanced offers a significant exposure to growth assets of 72% and 28% to defensive assets.

Intended to be suitable for

Investors who have a 5-10 years investment time horizon and are seeking to achieve moderate returns over the long-term by investing across a broad range of asset types, with higher exposure to growth assets.

Investment objectives

Return: Over rolling ten-year periods, having a 75% probability of achieving a member investment return after fees and taxes equivalent to CPI + 3.5% p.a.

Risk: The estimated chance that negative returns will occur in any financial year is less than 1 in 6.

Standard Risk Measure

Risk band: 5

Risk label: Medium to High

Estimated number of negative annual returns over any 20-year period: 3 to less than 4.

Recommended minimum investment timeframe

Medium to long (5-10 years)

Investment strategy

Growth vs Defensive split

Strategic sector allocation and long-term range as at 1 October 2016

# The benchmark strategic asset allocation of 'Infrastructure', 'Property', and 'Other' investments are allocated in part to growth and defensive assets to make the total Growth vs Defensive split.

The percentages in the above table (Benchmark strategic asset allocation %) set out the strategic asset sector allocation of this option. The actual sector allocation will vary in line with the investment managers’ day-to-day sector allocation decisions. The long-term allocation ranges are set out in the table (Asset allocation range %).

Net investment returns to 30 June 2016 (% p.a.)*

 Financial year ending

Pension

(%)

Inflation

(%)

 30/06/2012 -0.4  1.2
 30/06/2013 16.9  2.4
 30/06/2014 13.8  3.0
 30/06/2015 10.2  1.5
 30/06/2016 4.1 1.0
 5 Year Average 8.7  1.8

 

* Past performance is not an indicator of future performance. You should also expect the returns on each of your investment options to vary over time due to fluctuations in the value of investments within each investment option. These returns are net of investment fees and the indirect cost ratio only and do not reflect the administration fees.