It is important to understand the Balanced Growth option, as it is not only one of your Diversified investment choices, but is also our default option in which we invest your money if you do not nominate any other investment options. Balanced Growth is a growth-oriented, diversified investment option. This means we invest in both growth and conservative asset classes, with a bias towards growth. The benchmark asset allocation in Balanced Growth is 70% in Australian and overseas equities, property and growth alternatives and 30% in fixed interest. You should learn all you can before investing in Growth by looking at our information about its underlying asset classes plus any other educational material and/or professional advice you can source outside of Equipsuper.
Investment objective*
Achieve a net return of at least 4% p.a. above inflation (measured by the Australian Consumer Price Index, CPI) over a rolling five-year period. Within that timeframe you will usually experience some years that are better than others, and may even experience negative returns in some years.
Strategy
Invest mainly in equities and property, which are expected to earn higher returns over the long term. Invest the balance in more stable assets like fixed interest securities and cash.
Benchmark Allocations^
The asset allocation for each asset may vary from time to time within the permitted ranges in the table below:
| Asset class |
Benchmark allocation |
Permitted range |
| Australian equities |
30% |
20-40% |
| Overseas equities |
25% |
15-35% |
| Property |
10% |
5-15% |
| Growth alternatives |
5% |
0-10% |
| Defensive alternatives |
5% |
0-10% |
| Diversified Fixed Interest |
20% |
10-30% |
| Cash |
5% |
0-10% |
|
 |
10-Year Performance - Balanced Growth
This is how the Growth option performed against its objectives and other funds over the past ten years to 30 June 2011.
Compound average rate of net annual earnings for periods ending 30 June 2011.
| Net annual returns# |
Superannuation |
Pensions |
| 30 June 2011 |
10.2% |
10.8% |
| 30 June 2010 |
8.6% |
10.4% |
| 30 June 2009 |
-8.3% |
-9.5% |
| 30 June 2008 |
-5.9% |
-6.7% |
| 30 June 2007 |
14.3% |
17.8% |
| 30 June 2006 |
14.2% |
16.1% |
| 30 June 2005 |
13.3% |
13.3% |
|
* The investment objectives are not forecast or predictions, they simply represent a benchmark against which the trustee monitors performance.
^ The benchmark allocations for this investment option changed from 2 October 2006.
# Note that past performance is no indication of future performance. |
