Balanced Risk-Adjusted

A diversified portfolio with over 60% growth assets. We adjust the risk for this option by holding fewer shares and more bonds.

Option: Balanced Risk-Adjusted

Summary

10-year returns as at 30 June 2025

6.27% p.a.

Returns over the last 10 years¹

5+ years

Suggested timeframe

0.46% p.a.

Fees² + admin fees and costs

Who it suits

Suitable if you're an investor who:

wants a diversified portfolio with over 60% growth assets where the risk is adjusted by holding fewer shares and more bonds
wants to grow your super over the long term and wants a risk-adjusted strategy to weather volatile markets
is prepared to accept the option can have negative returns over the shorter term but aims for lower volatility compared to the Balanced option
is prepared to accept the option may not be suitable if you have a low risk tolerance, are seeking to preserve your super, or are likely to need access to your super in the next few years.

Risk³

Very Low

Low

Low to medium

Medium

Medium to high

High

Very high

Expected number of years of negative annual returns in any 20 years: 3 to less than 4. The risk is based on the standard risk measure (SRM)^.

Investment objective³

Accumulation and TTR Income accounts:

CPI + 3.5% p.a.

Retirement Income accounts:

CPI + 4.0% p.a.

Option size

Super assets:

$13.5 billion

Pension assets:

$19.2 billion

^For more definitions

Balanced Risk-Adjusted performance

As at 30 June 2025¹ (updated quarterly)

World share markets enjoyed strong returns over the June quarter, despite ongoing concerns over global trade, and attacks on Iran and its nuclear infrastructure by both Israel and the US.

After share prices fell sharply in early in April in response to President Trump’s ‘Liberation Day’ tariff announcements, the president’s decision soon after to pause most of those tariffs for 90 days sparked a massive resurgence in world share markets. Australian and global fixed income returns were positive over the quarter, with Australian bonds generally outperforming global markets.

Our unlisted asset portfolios generally underperformed public markets in the quarter, particularly given the strong returns from equity markets.

The 10-year accumulation return of 6.27% p.a. is broadly in line with the option’s return objective of CPI plus 3.5% p.a.

	Accumulation accounts	Retirement Income accounts⁴
10 years (p.a.)	6.27%	7.19%
7 years (p.a.)	5.80%	6.72%
5 years (p.a.)	6.26%	7.31%
3 years (p.a.)	6.78%	7.54%
1 year	10.48%	11.41%
3 months	4.57%	5.13%

Important: Up to 30 June 2024, investment returns for this option are net of administration fees and costs, investment fees and costs, transaction costs and, where applicable, investment taxes. From 1 July 2024, investment performance is net of investment fees and costs, transaction costs and, where applicable, investment taxes, but gross of administration fees and costs. You should consider this when comparing returns between options. Past performance is not a reliable indicator of future performance.

Balanced Risk-Adjusted asset allocation

	Strategic asset allocation
Australian shares	21.75%
International shares	23.75%
Unlisted assets and alternatives	30%
Fixed income	23.5%
Cash	1%
Total	100%

From 1 July 2025. For more information on these asset classes, strategic asset allocations, and allowable ranges, read the PDS that applies to you.

Learn more about what we invest in

Outlook and strategy

As at 30 June 2025

Our Balanced Risk-Adjusted option is designed to achieve its long-term return objectives with less volatility than similar investment options. It seeks to do this by holding fewer listed shares and more bonds compared to similar options, and as with our other options, a significant allocation to the key unlisted assets – real estate, infrastructure, private equity and private debt.

We don't design portfolios based on short-term economic, market or geopolitical forecasts. However, our investment team and external investment managers still seek to capitalise on opportunities that emerge during times of heightened market volatility. Those opportunities have increased significantly since the end of March.

At the end of June 2025, our active asset allocation slightly favoured bonds over shares and cash. We also sought to take advantage of significant differences in relative value between countries. Within the shares allocation, we preferred Japanese shares over shares in the US and Australia. In fixed income, we were overweight in France, UK, Italy and Australia and maintained underweight positions in Canadian, German and Japanese bonds. Our currency exposure is underweight the US dollar, while favouring Asian and Latin American currencies.