Balanced Portfolio

The VIP Balanced portfolio aims to provide investors with a combination of capital growth and income over the medium to long term from investment within a diversified portfolio of growth assets (Australian shares, International shares, and property securities) and defensive assets (fixed interest and cash). The portfolio is actively managed via our Strategic & Tactical Asset Allocation process whereby the Strategic Asset Allocation is based on the allocation split between growth and defensive assets – 60% / 40%. The Tactical Asset Allocation process then considers whether specific assets within the allocation are providing sufficient reward for risk based on various factors ranging from asset specific factors to overarching macroeconomic factors. If these factors deem to present an unfavourable situation we will hold an underweight position in the asset ranging all the way to 0%.

Investor Suitability

The VIP Balanced portfolio is suitable for investors who:

  • Require a balanced portfolio, diversified across all major asset classes.
  • Seek capital growth over the medium to long term with a moderate level of income.
  • Accept a moderate degree of volatility (loss) associated with a relatively higher exposure to growth assets.
  • Are prepared to invest for the minimum investment time frame of 5 to 7 years.
  • Accept the risk of price fluctuations particularly in periods less than the minimum investment understanding no guarantee in capital preservation.

Fund Updates & Performance Reports

Indicative Asset Allocation & Range

The VIP Balanced portfolio aims to invest up to a 60% allocation to growth assets; however the portfolio can hold up to 100% allocation in cash.

Balanced Portfolio Details