Balanced Growth Managed

November 21 2024

Balanced Growth Managed is the default investment option for Beneficiary Accounts and Accumulation Plan accounts.

Strategic asset allocations

As at 23 July 2024
(asset allocation ranges are shown in brackets)

Australian shares2 26.0% (10–50%)
International shares2 31.5% (10–50%)
Private equity 0.0% (0–10%)
Property 6.5% (0–20%)
Infrastructure 8.0% (0–25%)
Alternative growth1 5.5% (0–20%)
Credit 8.5% (0–25%)
Defensive fixed income 6.0% (0–20%)
Cash 8.0% (0–15%)

 

Target growth assets: 71%

Target defensive assets: 29%

Suitability: Members with a minimum investment timeframe of 10 years who are prepared to accept a high amount of volatility in pursuit of high long-term capital growth.
Objective* for Accumulation Plan Beneficiary Account & Working Income Stream: To provide a return of 3.25% p.a. after fees and taxes above the rate of inflation over a 10-year period.
Objective* for Retirement Income Stream: To provide a return of 3.75% p.a. after fees and taxes above the rate of inflation over a 10-year period.
Minimum suggested investment timeframe: 10 years
Risk band#: 6 – HIGH
Estimated number of negative annual returns#: 4 to less than 6 over any 20-year period

Investment option performance

As this is a new investment option, information on long-term returns is not yet available.

 

* The investment objectives are not a promise or guarantee of any particular benefit. They represent a benchmark against which the Board monitors the performance of the investments of the Fund.

# The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option(s).

1 Investments in the Alternative growth asset class are designed to diversify returns from the portfolio's other (traditional) asset classes. Investments may be held in the form of shares, debt securities, foreign currencies, commodities, hedge funds, and cash.

2 100% passively invested against the S&P/ASX200 index net dividends reinvested for Australian Shares against the MSCI World ex-Australia net dividends reinvested for International Shares.