Defined benefit Strategy

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. 

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
 
Australian Equities
25.10 % 14%-34%
 
International Equities
26.16 % 16%-36%
 
Australian Direct Property
2.08 % 0%-10%
 
International Listed Property
9.29 % 0%-10%
 
Private Equity
5.27 % 0%-10%
 
Private Credit
2.05 % 0%-5%
 
Growth Alternatives
1.68 % 0%-12%
Defensive
 
Short Term Fixed Interest
11.11 % 2%-22%
 
Liquid Alternatives
0.61 % 0%-5%
 
Bonds
6.82 % 1%-12%
 
Infrastructure
1.54 % 0%-5%
 
Cash
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)