There are four investment options to choose from. Each one is simply a different mix of the same ‘ingredients’. Those ingredients are growth assets and income assets. Growth assets are best suited to long-term saving. Income assets are best suited to short-term saving. Here’s why.
Now let’s look at the four options you have to choose from: growth, balanced, conservative and cash.
These percentages are the benchmark asset allocations for each investment option. Our investment manager may occasionally move away from the benchmark temporarily within specified ranges. See detailed benchmark asset allocations for each option below.
Compare the options
Here’s a more detailed comparison of the four options.
If you do not select an investment option, your account balances and future contributions will be invested in the balanced option. We call that the default option.
The trustee has set investment objectives for each of the four funds.
||To achieve returns of 2.75% above inflation over rolling 10-year periods while keeping the risk of a member losing more than 20% after inflation in any one year reasonably small.
||To achieve returns of 2.25% above inflation over rolling 7-year periods while keeping the risk of a member losing more than 15% after inflation in any one year reasonably small.
||To achieve returns of 1.25% above inflation over rolling 3-year periods while keeping the risk of a member losing more than 5% after inflation in any one year reasonably small.
||To provide a return broadly in line with that of the ANZ NZ 90-day Bank Bill Index after tax.
Mix and match
You can choose to invest your savings in one, or a combination of, the four options. But, remember, if you put 50% in the growth option and 50% in the conservative option, you are effectively investing in the balanced option.
You can choose different options for your existing account balances and for future contributions.
You can see how different combinations of the options look on the secure part of the website. Log in, select ‘Your investments’ and then the ‘Investment choice planner’ link.
Change your investment choice
You can change your investment choice online at any time. You can also download a form
from the website or phone the helpline. Your change will be processed effective from the first day of the following month. Submit your application at least five working days before the end of the month. Your change won’t be visible on the website until around the middle of the following month when the prior month’s interest rates have been applied.
There is no charge the first time you change your investment choice each calendar year. A fee applies
for subsequent changes.