Pooled Superannuation Trust Investment Options

Balanced
Target return	CPI plus 3% per annum on average over 10 years. CPI plus 4% per annum over 20 years.
Investment risk¹	High. (Negative returns expected in between 4 to 6 out of every 20 years)
Minimum suggested timeframe²	5 years +
Investment objective	This option is diversified across a range of growth and defensive assets and aims to produce consistent returns over time.
Asset allocation guidelines
	Range	SAA Benchmark
Growth assets		75%
Equity
– Australian shares	15 - 45%	23%
– International shares
Developed Markets	10 - 30%	22%
Emerging Markets	0 - 15%	8%
– Private equity	0 - 15%	7%
Infrastructure	0 - 15%	6%
Property	0 - 15%	4%
Other
– Credit	0 - 10%	2%
– Alternatives	0 - 10%	3%
Defensive assets		25%
Infrastructure	0 - 10%	6%
Property	0 - 20%	9%
Fixed income	0 - 20%	0%
Cash	0 - 10%	0%
Other
– Credit	0 - 10%	5%
– Alternatives	0 - 10%	5%

Indexed Balanced
Target return	CPI plus 3.0% per annum over 20 years.
Investment risk¹	High. (Negative returns expected in between 4 to 6 out of every 20 years)
Minimum suggested timeframe²	7 years +
Investment objective	This option is diversified across a range of growth and defensive assets and aims to produce consistent returns over time.
Asset allocation guidelines
	Range	SAA Benchmark
Growth assets		75%
Equity
– Australian shares	25 - 55%	32%
– International shares
Developed Markets	25 - 55%	43%
Emerging Markets	0 - 10%	0%
Defensive assets		25%
Fixed income	10 - 30%	15%
Cash	0 - 20%	10%

Infrastructure
Target return	CPI plus 3% per annum over 20 years.
Investment risk¹	High. (Negative returns expected in between 4 to 6 out of every 20 years)
Minimum suggested timeframe²	5 years +
Investment objective	This option consists of tangible Australian infrastructure assets and aims to achieve income returns and capital growth over the longer term.
Asset allocation guidelines
	Range	SAA Benchmark
Growth assets		50%
Infrastructure		50%
Defensive assets		50%
Infrastructure		50%

Property
Target return	CPI plus 2.5% per annum over 20 years.
Investment risk¹	High. (Negative returns expected in between 4 to 6 out of every 20 years)
Minimum suggested timeframe²	7 years +
Investment objective	This option has an income bias aiming to offer investors lower relative earnings volatility and a higher income yield
Asset allocation guidelines
	Range	SAA Benchmark
Growth assets		30%
Property		30%
Defensive assets		70%
Property		70%

1. Investment risk is based on an industry-wide Standard Risk Measure. It shows the number of expected negative annual returns over a 20-year period.
2. Minimum suggested investment timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year. Past performance however is not a reliable indicator of future performance and investors should be aware that changing market conditions can cause the value of investments to change.