Industry fund NGS Super has launched a passive balanced option in response to demand for low-cost investment choices from members and market competition.
The indexed balanced option has an annual investment management fee of 0.15 per cent compared to the default diversified option's 0.77 per cent charge.
The asset allocation for the indexed balanced option was divided into 67.5 per cent growth assets and 32.5 per cent defensive investments, NGS Super chief executive Anthony Rodwell-Ball said.
The growth assets include a mix of Australian and overseas equities, Australian listed property and global listed infrastructure, while the defensive component comprises Australian bonds, cash and term deposits.
The choice seeks to provide a return of 3 per cent above inflation a year over rolling five-year periods.
Rodwell-Ball said the indexed option would not invest in unlisted assets.
He said the new option was not NGS Super's response to the MySuper initiative.
"We've developed our new indexed balanced investment option in response to the needs of our members and the option will help us to remain competitive against other offerings in the superannuation market," he said.
NGS Super has more than $4.1 billion in assets and over 89,000 members.
