Overview

Designed for investors with a time horizon of at least three years, who want stable, modest returns, with a low to medium likelihood of negative returns.

Investment objective

This investment stage aims to:

  • achieve a return that exceeds CPI by at least 2% pa over a three year period, after tax and investment fees; and
  • limit the likelihood of a negative annual return to less than two in 20 years (or 10% likelihood in each year).

Minimum suggested time to invest

3 years.

Risk level

This investment option has a low to medium degree of risk (risk band 3).

The estimated number of negative annual returns over any 20 year period is 1.7 years.2

1 The strategic asset allocation is an indication of the proportion of the investment option assets that are allocated to each asset class. The actual asset allocation to each of the asset classes may vary from time to time, but within the ranges indicated.

2 The figure shown is the estimated number of negative annual returns over any 20 year period for this investment option. This is different to the investment objective (which aims to limit the likelihood of negative returns to less than a specified number of years).

Asset classStrategic asset allocation1 (%)Range (%)
Growth assets
3020-40
Equities
2515-35
Growth alternatives
50-15
Defensive assets
7060-80
Defensive alternatives
100-20
Fixed interest
4535-55
Cash
155-25