Investment Objectives and Strategy
Investment objectives and strategy
The Scheme adopts a single investment objective and strategy covering both defined benefit and accumulation benefits.
The investment strategy is structured for investors with an investment time horizon of at least seven years. Annual returns may be volatile.
Investment return objective1
The Balanced product has a target rate of return of 4% in excess of the rate of inflation.
This option is invested in the range of 60-75% in Growth assets (shares, property, private equity and other growth opportunities) and the balance in Defensive assets (cash and fixed interest).
|Strategic Asset Allocation2|
|Australian Equities 22%|
|International Equities 18%|
|Diversified Strategies (Growth) 8%|
|Diversified Strategies (Income) 15%|
|Inflation Linked Securities 12%|
|Fixed Interest 10%|
Summary risk level
It is likely that a negative return might occur between three and four years in 20.
Medium to high risk.
The benchmark portfolio for the Scheme is a balanced strategy, comprising different asset types including shares, fixed interest and property.
1 The investment objective states what the Balanced product aims to achieve and is designed to help members with their investment decisions. The objective has been developed having regard for the long-term performance and characteristics of financial markets. There is no guarantee, however, that the objective will be met. This is because financial markets are volatile and future returns may vary from returns earned in the past. Indeed, there is a material likelihood that returns may be negative in any particular year.
2 Balanced Investment option strategic asset allocations apply from 1 July 2012.