This option invests at least 95% 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
Suitability
Most suitable for members who are willing to accept a medium risk of a negative return in any one year
Minimum suggested investment timeframe
Normally five years or more
Standard Risk Measure
Risk Band: 4
Risk Label: Medium
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. A negative annual return is anticipated on average 2-3 times every 20 years but negative returns may be more or less frequent.
Target Asset Allocation *
*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.