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CONSERVATIVE, BALANCED OR GROWTH INVESTMENT?
WHAT IS YOUR RISK TOLERANCE?
There are few, if any, sure-fire investments so there is always an element of risk in investing your savings.
Before you invest in IRIS-GMK we need you to indicate what level of risk (variability in year-to-year performance) you are comfortable with. IRIS-GMK provides members with three investment directions to choose from:
- Conservative: suits savers with a short-term investment horizon (1-3 years); savings held at least 80% in cash, deposits, and fixed interest investments, and no more than 20% in shares.
- Balanced: suits savers with a 3 to 10 year investment horizon. The account holds no more than 70% in yield and growth shares, with the balance in cash, deposits, and fixed interest investments. The Balanced direction is the default investment portfolio.
- Growth: suits people that expect to be in the Scheme for 10 years or more. The account may be fully invested in global and New Zealand growth shares.
You can choose any one of these three investment directions, or choose a combination of two or three.
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INVESTMENT DIRECTION OVERVIEW
This chart shows the maximum percentage of each portfolio option that we can hold in shares and bonds. More information is available in the IRIS-GMK Investment Statement.
| Investment direction |
Equities (shares / bonds) |
Cash/fixed interest |
Conservative
|
Up to 20% |
Balance |
Balanced (default)
|
Up to 70% |
Balance |
| Growth |
Up to 100% |
Balance |
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CHANGING YOUR INVESTMENT DIRECTION
You can change your investment direction up to three times each Scheme year (the 12 month period ending on 31 March each year). Currently there is no charge for changing your investment direction. After 1 July 2010 members may be charged a fee of $50 for second and third amendments to their investment direction.
Your interests in the investment portfolios will be rebalanced on a monthly basis in order to ensure that your investment is administered in accordance with the asset allocation ranges set out above. It is possible that your investment will be outside of these asset allocation ranges between the dates where the accounts are rebalanced.
How to change investment direction
Just inform us in writing, either by email, by mail or fax. Include your full name and IRD number. Our mailing address is P.O. Box 10068, Wellington, 6143. The fax number is 04 473 0643.
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