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 | ||
| 25.09 % | 14%-34% | |
| 26.30 % | 16%-36% | |
| 9.01 % | 4%-14% | |
| 1.93 % | 0%-10% | |
| 5.12 % | 0%-10% | |
| 2.08 % | 0%-6% | |
| 1.69 % | 0%-5% | |
| Defensive | ||
| 10.92 % | 2%-22% | |
| 0.61 % | 0%-5% | |
| 1.64 % | 0%-5% | |
| 6.44 % | 0%-17% | |
| 9.17 % | 0%-18% | |
Asset allocations current at 30 June 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)
