To achieve, on a rolling five year basis, a rate of return in excess of the median of our relevant peers, as measured by the relevant Growth Universe and to maximise the after tax rate of return above inflation, as measured by CPI, over rolling five year periods, subject to the following constraints:
- Recognising a greater risk of experiencing a negative return in any one year than the Conservative option; and
- Maintaining sufficient liquidity to enable the Fund to meet its commitments.
Based on past performance of investment markets, in the long term, the Balanced option aims to achieve:
- Over rolling five year periods, a rate of return after tax and fees, in excess of CPI + 3.0%, with
- a 1 in 4 chance of experiencing a negative annual return over the next five years.
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.
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 still have 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.
Important Note: There is no guarantee that this option will meet its objective or that the value of your account will not decrease as a result of negative returns.
Want to find out how the fund performed over the last 12 months? View Investment Returns »
Where money is invested
In the Balanced option, 75% of your superannuation is invested in shares and property and 25% in income assets such as bonds.
The intended mix of investments are shown below. From time to time, the Trustee may adjust the mix within the ranges shown as investment conditions change.
Asset mix range
Asset Mix Range
|Equity - Australia||28 - 34|
|Equity - International||33 - 39|
|Property - International||2 - 8|
|Infrustructure - International||1 - 5|
|Total Growth Assets||72 - 78|
|Fixed Income - Australia||6 - 12|
|Fixed Income - International||4 - 10|
|Cash - Australia||6 - 12|
|Total Income Assets||22 - 28|