Benefits of investing in the BT Index Balanced Fund

The key benefits of the Fund are as follows.

• Potential for income from underlying sector index funds.

• Exposure to a cost effective diversified portfolio strategy.

• Effective risk management through diversification, investment management selection and ongoing monitoring.

• Access to information about your investment 24/7 on our secure client website at BT Online, enabling you to keep track of your investments.

Risk level

Medium to High

Investor suitability

The Fund is intended to be suitable for investors seeking index exposure to a diversified range of investments with income producing and growth characteristics who have a medium to high tolerance for risk.

About the Fund

BT Diversified Index Funds (Funds) offer a low cost diversified investment across asset classes using index funds and exchange traded funds.

With five options to choose from, you can select from diversified portfolios of global and Australian shares, property, fixed interest and cash across a range of risk profiles.

What is an index?

An index comprises all available investments (or a specific sample of) in a particular market or sector, such as Australian shares, property or fixed interest. It measures the performance of a particular market or sector over time. An index fund invests in the same securities as the index it tracks and will continually rebalance to ensure it matches the index allocations.

Investors in an index fund have indirect access to the income and growth of the securities in the index with lower transaction costs compared with personally owning and managing these securities directly.

Using a BT Diversified Index Fund

The Funds invest in a number of indices across different asset classes. The allocation to each asset class and index will depend on:

• the investment strategy of the Fund

• the objectives of the Fund

• asset allocation targets

• the level of risk, for example, a more conservative position compared to a more growth-oriented position.

How we invest your money

The Fund invests in a diverse mix of assets with both income-producing assets of cash and fixed interest (around 30%) and growth assets of shares and property (around 70%).

The Fund's exposure to these asset classes will be obtained primarily by investing directly into our sector specific funds. The Fund may also hold assets directly including derivatives, currency and other unit trusts.

Strategic asset allocation (SAA) ranges

• Equity - Australian Listed: 20-50%

• Equity - International Listed: 0-40%

• Property - Australian Listed:  0-20%

• Property - International Listed:  0-20%

• Fixed Income - Australian: 5-25%

• Fixed Income - International: 5-25%

• Cash: 0-15%

Total Growth Assets:  55-80%

Total Defensive Assets: 20-45%