Aware Super Balanced (MySuper): A Solid Middle Ground

Aware Super Balanced (MySuper) offers members a diversified asset mix throughout their super journey, blending growth and defensive assets in a 60/40 allocation. Designed to capture growth while managing volatility, this option has become a popular choice among members who seek a balanced approach without actively tailoring their investment strategy.

The Balanced (MySuper) option allocates around 60% to growth assets—equities (domestic and international), infrastructure, and listed property—and 40% to defensive assets, including government and corporate bonds as well as cash. Growth assets drive capital appreciation, while defensive assets offer stability and income when markets falter. Aware Super undertakes periodic rebalancing to maintain these target weights.

Over the past decade, the Balanced option at Aware Super has delivered an average annual return of approximately 6.9%. During strong market periods, it closely followed equity market gains, while drawdowns were muted compared to an all-equity portfolio. For example, in 2020, losses were limited to around 12%, significantly less than broad equity market declines. Members should analyze performance across multiple rolling periods (1, 3, 5, and 7 years) to assess consistency and resilience.

Aware Super charges a net investment fee of about 0.78% p.a. for the Balanced (MySuper) option, inclusive of administration and investment management fees. This fee is competitive among large industry funds. There are no additional transaction or performance-based fees, and members benefit from Aware’s scale-driven cost efficiencies. Comparing this fee to cost alternatives can reveal the long-term impact on net returns.

With a moderate growth allocation, the fund experiences annual volatility of around 8–10%, with a 25% chance of negative returns in any given year. Aware Super employs risk management techniques, including tactical asset allocation shifts and defensive overlays, to mitigate severe swings. This risk profile suits members comfortable with periodic market dips for potential long-term gains.

Balanced (MySuper) is ideal for members who prefer a hands-off, balanced approach, often mid-career (ages 30–55). Those near retirement may wish to transition to more conservative options to protect capital, while younger members seeking higher growth could consider high growth options. This balanced strategy aligns with investors seeking a blend of growth and resilience.

Members default into Balanced (MySuper) if they take no action. To confirm or switch, log in to the Aware Super portal, navigate to ‘Investment options’, and select ‘Balanced (MySuper)’. For DIY equivalents, build a 60/40 portfolio using index ETFs for equities and bond funds or cash for defensive exposure.

Aware Super Balanced (MySuper) strikes a balance between growth and stability with competitive fees and a strong performance track record. Its diversified allocation and risk management make it suitable for most super members seeking moderate growth. Always align your investments with your personal goals, time horizon, and risk tolerance, and consider professional advice to optimize your super strategy.