What is it?
Our Balanced option is one of the range of investment choices available to members of Australian Catholic Superannuation. It is made up of shares of Australian and International equity markets along with a mix of other assets. It’s a growth option that is designed to provide higher returns for members who are comfortable with more volatility and a higher chance of a negative return or loss in any one year.
Who should invest in the Balanced option?
The Balanced option is designed for members with a long-term investment horizon (7 years or more) who are willing to weather increased volatility. If you are looking to see higher potential gains and are willing to see a negative return, the Balanced option may be an option for you.
What is the investment objective?
The Balanced option seeks to achieve an investment return, after taxes and fees, of at least 3.5% per annum above inflation over rolling 10-year periods.
How long should I invest in the Balanced option?
Because there is the opportunity for the value of investments to go down in the short term, we recommend a minimum investment term to avoid short-term market volatility.
For our Balanced option, the suggested minimum investment term is 7+ years.
A risk estimate is the potential for a negative return in any given year over a 20-year rolling period.
While our goal is to provide members with a positive return, external factors can influence investment performance, including broader economic trends. Risk is defined by how often an investor should expect to see a negative return out of every 20 years.
The risk estimate for the Balanced option is High (negative annual return likelihood in 4 to less than 6 out of every 20 years). That means, in any given year, there is a 20-30% chance for a negative return.
The Balanced option is predominantly invested in Australian and International equity markets with a mixture of other growth assets like Property and Infrastructure.
Fees and other costs
The Balanced option fees will be:
- Investment management fee of 0.42%pa
- Indirect cost ratio of 0.34%pa.
For each $50,000 invested, members can expect to pay $583 in investment fees, administration fees and indirect costs for this option each year. These fees are however subject to change.
How can I change my investment choices?
You can change your investment mix at any time. Just login to your Members online account and click ‘Your account’ from the options in the left hand menu.
Alternatively, you can download and complete our Investment Switch form.
Need help making an investment choice?
Making an investment choice can be difficult. Download the "Your investment options super fact sheet" for more information on all of our investment options available to you.
Take advantage of our free, over-the-phone advice service and obtain a personal recommendation on which of our investment options may be right for you.