Overview

Designed for investors with a time horizon of at least five years, who want an investment portfolio balanced between growth and defensive assets, with a medium degree of risk.

Investment objective

This investment stage aims to:

  • achieve a return that exceeds CPI by at least 3% pa over a five year period, after tax and investment fees; and
  • limit the likelihood of a negative annual return to less than three in 20 years (or 15% likelihood in each year).

Minimum suggested time to invest

5 years.

Risk level

This investment stage has a medium degree of risk (risk band 4).

The estimated number of negative annual returns over any 20 year period is 2.6 years.2

1The strategic asset allocation is an indication of the proportion of the investment stage 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.

2The figure shown is the estimated number of negative annual returns over any 20 year period for this investment stage. 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
5040-60
Equities
4030-50
Growth alternatives
100-20
Defensive assets
5040-60
Defensive alternatives
100-20
Fixed interest
3020-40
Cash
100-20