Investment target
The Balanced option targets to invest approximately 75% in growth assets and 25% in defensive assets.
Investment objective
Investment objective (after fees and taxes over rolling 10-year periods) - to outperform the annual rate of inflation (CPI) by around 2.75% pa.
Suitable for
Most suitable for members who are willing to accept a medium to high risk of a negative return in any one year.
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
Performance
| Balanced | Investment return to 30 June 2020 | ||
|---|---|---|---|
| Option | 3 years | 5 years | 10 years |
| Accumulation | 3.72% | 4.85% | 6.79% |
| Pension | 4.09% | 5.27% | 7.56% |
Refer to the investment performance page for the most recent investment performance figures.
Refer to the Investments Supplement for more information on investment options.