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IRIS Conservative Option
(Previously known as IRIS Stable Portfolio)
Indicative risk level: Moderate
Investment objectives:
- To achieve returns that exceed the inflation rate (change in the CPI*) by 2.5% per annum (before tax), on a rolling five-year basis. This objective is expected to be achieved around 70% of the time.
- To provide security (but not a guarantee) of capital invested.
- To limit the likelihood of crediting negative annual returns to one in every 12.5 years.
See historical performance
Asset Allocation
Asset Class
|
Actual Allocation as at 31/07/10 **
|
Strategic Allocation ***
|
Allowable Range ****
|
Australian Shares
|
16.54% |
15%
|
10-20% |
International Shares
|
9.48% |
12.5%
|
7.5-17.5% |
Property
|
9.39% |
10%
|
5-15% |
Australian Fixed Interest
|
29.37% |
34%
|
29-39% |
International Fixed Interest
|
18.23% |
11%
|
6-16% |
Cash
|
16.99% |
17.5%
|
12.5-22.5% |
* CPI = Consumer Price Index
** Actual Asset Allocation = The actual proportion of assets, such as shares, cash and property, held in each investment option at a particular point in time.
*** Strategic Asset Allocation = The strategic allocation is the optimal asset mix in order to achieve the option’s long-term investment objectives and to enhance performance.
**** Allowable Asset Allocation Range = Adherence to the strategic asset allocation can only be achieved if the asset mix is regularly rebalanced to accommodate market movement. The allocation is permitted to vary within the allowable asset allocation range as determined by the Trustee.
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