Balanced IndexThis portfolio is diversified across local and global equities, listed property, interest-bearing assets (including inflation-linked bonds) and cash. It invests in underlying index-tracking funds, benefiting from their substantially lower fees and significantly reduced uncertainty of performance relative to the market. Lower fees and efficient investment indexation processes minimise the tracking error on the overall returns. The portfolio rebalances annually, keeping trading costs to a minimum, while ensuring that the portfolio partakes in the intended combination of returns originating from each asset class.
This solution is suitable for investors wanting moderate to high long-term growth with less volatility than pure equity portfolios.
The portfolio complies with Regulation 28 of the Pension Funds Act.
Benchmark: Composite asset allocation benchmark
Objective: This moderate risk portfolio targets a return of CPI + 5% over rolling three- to five-year periods.