Balanced Option

The Balanced option targets to invest approximately 70% in growth assets and 30% in defensive assets.

Investment objectiveTo achieve a rate of return that exceeds the return on the Cash option by 3% per year over rolling five-year periods.
Suitable forThis option may be most suitable if:
  • you expect to have five years or more until you need your super as a cash lump sum; or
  • you are willing to accept a moderate risk of a negative return in any one year.
Risk versus return The Balanced 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 Conservative option.
A negative annual return is anticipated on average two years in every eleven years but negative returns may in fact be more or less frequent.
Asset mix
Growth assets Range (%) Target (%)
Australian shares 10-40 24
Overseas shares 10-40 24
Listed property 0-8 4
Direct property * 0-30 6
Private equity * 0-30 6
Growth alternatives * 0-15 6
Total growth assets 65-75 70
Defensive assets Range (%) Target (%)
Defensive alternatives * 0-25 12
Fixed interest 0-20 12
Cash enhanced Balance 6
Cash 0-10 0
Total defensive assets 25-35 30

* These assets are generally less liquid (able to be cashed) than other assets.