Investment Option – Balanced

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

 

Investment objective (after fees and taxes over rolling 10-year periods)

To outperform the annual rate of inflation (CPI) by around 2.75% pa

 

Suitability

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

 

Minimum suggested investment timeframe

Normally five years or more

 

Standard Risk Measure

Risk Band: 5
Risk Label: Medium to High

 

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