Balanced SAA

11% cash · 60% FI · 3% AU eq · 5% Intl eq · 21% alternatives (PC unrated)

Operating Range
2.29x Capital Ratio6.3% p.a.

Total Portfolio

$333.3M

ALM + Endowment

Expected Return

6.3%

$21.0M p.a.

Prescribed Capital

$52.4M

GPS 114 Aggregate ARC

Capital Ratio

2.29x

Operating Range

Asset Allocation

$135.3M total
Liquid
Cash & TDs
26.8%$36.3M
0.6%RC
Listed Infra
0.0%$0.0M
35.0%RC
Private Credit
Private Credit IG
0.0%$0.0M
6.0%RC
Private Credit BB
0.0%$0.0M
11.0%RC
Private Credit Unrated
31.7%$42.9M
16.0%RC
Weighted Avg RC16.0%
Real Assets
Infra Debt
0.0%$0.0M
6.5%RC
Infra Equity
4.9%$6.6M
29.0%RC
Unlisted Property
4.9%$6.6M
33.0%RC
Growth
AU Equities
7.3%$9.9M
40.0%RC
Intl Equities
12.2%$16.5M
45.0%RC
Private Equity
7.3%$9.9M
45.0%RC
Alternatives
Hedge Funds
4.9%$6.6M
30.0%RC

ALM Portfolio

Fixed

Duration-matched to insurance liabilities. No change required.

AU IG Fixed Income
5.5% RC$198.0M
ARC$10.9M

Asset Allocation

  • Cash & TDs
  • AU Equities
  • Intl Equities
  • Hedge Funds
  • Private Equity
  • Private Credit Unrated
  • Unlisted Property
  • Infra Equity

Risk Charge Analysis

AssetAllocationRisk ChargeRC AmountExp. Return
Cash & TDs
$36.3M0.6%$0.2M4.3%
AU Equities
$9.9M40.0%$4.0M9.0%
Intl Equities
$16.5M45.0%$7.4M9.5%
Hedge Funds
$6.6M30.0%$2.0M7.5%
Private Equity
$9.9M45.0%$4.5M13.0%
Private Credit Unrated
$42.9M16.0%$6.9M8.5%
Unlisted Property
$6.6M33.0%$2.2M8.5%
Infra Equity
$6.6M29.0%$1.9M10.5%
Endowment Total$135.3M21.4%$29.0M7.9%

Capital Adequacy

ALM Portfolio ARC
$10.9M
Endowment Portfolio ARC
$29.0M
Insurance Risk Charge
$10.0M
Operational Risk Charge
$5.0M
Aggregation Benefit
($2.5M)
Total PCA$52.4M
Capital Base$120.0M
Capital Ratio2.29x
Operating Range
Minimum acceptable operating range
Monitor closely. Consider capital management actions to restore to target.

Capital Ratio Scale

Target Range≥ 2.30x
Operating Range≥ 2.00x
Impairment Trigger≥ 1.70x
Impairment Threshold≥ 1.20x
PCR Breach / Insolvency< 1.20x

Scenario Comparison

Expected Return by Scenario (%)

CurrentS1S2S30248

Capital Ratio (x PCA)

CurrentS1S2S30124

LAGIC Regulatory Reference

Risk charges are calculated under APRA GPS 114 (Asset Risk Charge). Private credit (IG) carries ~6.0% risk charge — identical to public IG bonds — making it the most capital-efficient yield-enhancing asset class. Unlisted infrastructure equity carries 29.0% and unlisted property 33.0%. Listed equi The Board minimum capital ratio is 2.1x PCA. Asset concentration limits are governed by GPS 117 (max 8% per Grade 3 counterparty).