Investment Option – Moderate

This option invests at least 95% of funds according to the target asset allocation of 70% in growth assets and 30% in defensive assets and the remainder towards the MVP approach


Investment objective (after fees and taxes over rolling 10-year periods)

To outperform the annual rate of inflation (CPI) by around 2.5% pa



Most suitable for members who are willing to accept a medium risk of a negative return in any one year


Minimum suggested investment timeframe

Normally five years or more


Standard Risk Measure

Risk Band:   4
Risk Label:   Medium


Risk versus return

This option has significant emphasis on growth assets with the aim of achieving higher returns, together with some lower-risk defensive assets to reduce the short-term risks associated with growth assets and the MVP approach to manage extreme volatility. It offers a balance between expected long-term returns and the risk of a negative return in any one year. A negative annual return is anticipated on average 2-3 times every 20 years but negative returns may be more or less frequent.


Target Asset Allocation *