Jordan & Alex TaylorHow your allocation shapes returns
Each asset class contributes according to its share of the Balanced portfolio. The table makes both the inputs and their weighted contributions visible.
| Asset class | Allocation | Historical return | Weighted historical (pp) | Expected return | Weighted expected (pp) |
|---|---|---|---|---|---|
| Australian shares | 26.00% | 8.10% | 2.11 | 6.40% | 1.66 |
| International shares | 32.00% | 9.20% | 2.94 | 6.80% | 2.18 |
| Listed property | 12.00% | 6.50% | 0.78 | 5.80% | 0.70 |
| Australian fixed interest | 13.00% | 3.10% | 0.40 | 3.60% | 0.47 |
| International fixed interest | 8.00% | 2.80% | 0.22 | 3.40% | 0.27 |
| Cash | 9.00% | 2.10% | 0.19 | 2.60% | 0.23 |
| Total weighted return | 100.00% | n/a | 6.65% | n/a | 5.51% |
How the total is calculated.
Each contribution is allocation × asset-class return. For example, 26.00% × 6.40% = 1.66 percentage points. The total is the sum of all six contributions, using unrounded values.
Historical basis.
Sample annualised asset-class inputs cover 31 December 2015 to 31 December 2025. Their weighted sum is an input comparison, not the portfolio's realised compound return or a backtest.
Expected-return basis.
Separate forward-looking assumptions, weighted using the same allocation. These sample nominal inputs are gross of fees and tax. Expected returns are uncertain; the document must state the approved methodology and any adjustments used by the modeller.