Investments

Our Balanced (default) option

This is the investment option that most members
are in and the option to which your super automatically invests in (defaults to), unless you instruct us otherwise.

Investment strategy

To invest in a diversified range of investments, with approximately 73% in shares, growth property and alternative investments, and approximately 27% in cash, fixed income and defensive property.

Growth............73%
Defensive.......27%

Investment objective

To achieve a return (net of tax and investment expenses) that exceeds the increase in the CPI by at least 4% p.a. over moving 10 year periods, and to limit the probability of achieving a negative return
to approximately 1 year in 5.


Risk of short-term negative return

Moderate The return obtained each year will fluctuate and will be negative from time to time. There is a moderate chance that the return in any 1 year will be negative.

Investment fee#

0.69%

Please note; between October 2011 and mid 2012, the Fund will transition to our new Strategic Asset Allocation (SAA) for all Pre-mixed investment options, including our Balanced (default) option as shown below. These changes will be measured and take into account any shift in market conditions. They also aim to reduce our exposure to the current volatility experienced in global investment markets.

#The investment fee is a measure of the fees deducted from investments. These fees include the cost of the Fund’s investment managers, custodian and investment advisor and certain other costs of the Fund. The investment fee is the total of these costs, divided by the net asset value of the Fund. These fees are deducted directly from the investment earnings before they are allocated to member accounts. They are therefore not deducted from your super account directly.

^Strategic asset allocation as at 12 October 2011

PLEASE NOTE: The Conservative, Moderate and High Growth options commenced on 1 September 2010.