Balanced
Objective To achieve, on a rolling five-year basis, a rate of return competitive with other industry balanced funds, as measured by the appropriate survey undertaken by Intech Financial Services Pty Ltd.
Important NoteThere is no guarantee that this option will meet its objective or that the value of your superannuation will not decrease as a result of negative returns.
Comparison relative to other options The Balanced option has less emphasis on growth assets than the All Growth option, and holds some lower-risk income assets.
You should recognise a moderate risk of experiencing a negative return in any one year, as is consistent with a share and bond portfolio. In general, you can expect the likelihood of higher long-term returns and more fluctuations than the Conservative option but lower returns and smaller fluctuations than the All Growth option.
Where money is invested In the Balanced option, 75% of your superannuation is invested in shares and property, and 25% in bonds.
| Asset Mix |
Benchmark % |
Range % |
| Total Australian Shares |
31 |
28 – 34 |
|
Australian Shares
|
15.5 |
12.5-18.5 |
|
Australian Opportunities
|
15.5 |
12.5-18.5 |
| Total International Shares |
39 |
36-42 |
|
International Shares
|
7.25 |
4.25-10.25 |
|
Global Opportunities
|
7.25 |
4.25-10.25 |
|
International Shares - $A Hedged
|
9.75 |
6.75-12.75 |
|
Global Opportunities - $A hedged
|
9.75 |
6.75-12.75 |
|
Emerging Markets
|
5 |
2-8 |
International Property
Securities - $A Hedged |
5 |
2-8 |
| Total Growth Assets |
75 |
72 – 78 |
| Australian Bonds |
7 |
4 – 10 |
International Bonds - $A
Hedged |
10 |
7-13 |
| Inflation Linked Bonds |
5 |
2-8 |
Alternative Strategies - $A
hedged |
0-3 |
0-3 |
| Australian Enhanced Cash |
0-3 |
0-3 |
Combined Alternative
Strategies and Cash |
0-3 |
0-3 |
| Total Income Assets |
25 |
22 – 28 |
The intended mix of investments are shown in the above table, however, the Trustee may adjust the mix from time to time as investment conditions may change.
Suitability (risk tolerance) Generally an investor in this type of option is likely to be looking for high investment returns over the medium to long term. They have still got the time to ride out investment fluctuations and may feel more comfortable with this option because the ups and downs are likely to be less significant than for All Growth.
Historically, this type of option has produced negative returns every few years. However, past performance is not an indication of future performance and therefore future investment returns may differ from past investment returns and may be positive or negative.