The Defined Benefit Strategy generally invests a high proportion of its funds in growth assets, such as Australian and international equities and property. The balance is invested in income producing assets. This combination aims to earn 5.75% nominal return p.a. The emphasis is on growth, so bear in mind that there may be what financial professionals call 'short-term volatility' in this strategy. In other words, the value of the investment may fluctuate over the short-term.
Defined benefit Strategy
Objective
Nominal return of at least 5.75%
Risk Profile
As this is a defined benefit scheme any downside risk is effectively underwritten by the Employers.
Time horizon
5 years
Asset Allocation
| Asset class | Current allocation | Allocation range |
|---|---|---|
| Growth | ||
|
|
25.10 % | 14%-34% |
|
|
26.16 % | 16%-36% |
|
|
2.08 % | 0%-10% |
|
|
9.29 % | 0%-10% |
|
|
5.27 % | 0%-10% |
|
|
2.05 % | 0%-5% |
|
|
1.68 % | 0%-12% |
| Defensive | ||
|
|
11.11 % | 2%-22% |
|
|
0.61 % | 0%-5% |
|
|
6.82 % | 1%-12% |
|
|
1.54 % | 0%-5% |
|
|
8.28 % | 0%-20% |
Asset allocations current at 31 May 2021.
Note that the combined investments in Illiquid Asset will not exceed 30%. Illiquid assets are defined as follows:
• Australian Direct Property
• Private Equity
• Private Credit
• Growth Alternative except Attunga Fun
• Infrastructure
• International Equities (Only Challenger Index Plus Fund)
