Trustee Selection Strategy
Strategic asset allocation: 48.0% liquid growth; 38% alternatives; 14% liquid defensive.
Investment objective: To maximise the earnings rate subject to a greater than 50% probability of exceeding CPI+4% p.a. over rolling 10 year periods.
Risk: High (Risk Band 6: from 4 to less than 6 negative annual returns estimated over any 20 year period). For further information about the risk measure for the Trustee Selection Strategy, please refer to the Standard Risk Measures document.
Investment time horizon: The Trustee Selection Strategy has been designed for a long-term investment horizon (10 plus years) and a high tolerance to market volatility.
Strategic asset allocation
| At 1 July 2018 | Dynamic asset allocation range | |
|---|---|---|
| Liquid growth | 48.0% | 32.0% - 64.0% |
| Australian Equities | 20.0% | |
| International Equities | 25.0% | |
| Other | 3.0% | |
| Alternatives | 38.0% | 28.0% - 48.0% |
| Infrastructure | 11.0% | |
| Property | 7.0% | |
| Alternatives - Other | 20.0% | |
| Liquid Defensive | 14.0% | 10.0% - 30.0% |
| Australian Fixed Interest | 5.0% | |
| International Fixed Interest | 0.0% | |
| Other | 5.0% | |
| Cash | 4.0% | |
| Total | 100.0% |
Note
Annual negative returns can occur in consecutive years and may exceed the estimated standard risk measure. For example, the Trustee Selection Strategy is estimated to experience on average 4 to 6 negative annual returns in any 20 years. Despite this expectation, negative annual returns can occur consecutively. Further negative annual returns may also be experienced after these negative returns and within the same 20 year time frame.