Investment strategy

Our investment motive is to help you save an adequate super balance for your future income needs.

How we aim to do this for you is to achieve the target return objective for each investment option over its relevant timeframe.

We offer a simple range of options

We offer four options so you can make a prudent choice to achieve your saving target.

Each option has a target return objective

That’s the level of investment performance an option aims to achieve over its set timeframe.

Each option has a prescribed level of investment risk

That’s the option’s likelihood of achieving its return target over its set timeframe.

Our view of investment risk

Risk means:

  1. Not saving enough super for a comfortable retirement lifestyle
  2. Failure to achieve our target return objectives for each option over their investment horizons

Our focus is on downside protection

By preserving more of your savings in weak markets and capturing most of the upside in strong markets, the cumulative return you get should achieve your option’s return target over its set timeframe and the volatility of your returns should be reduced along the way.

Our operating principles

  1. Avoid loss and waste
  2. Take only those risks that are expected to be adequately compensated
  3. Value flexibility

Our investment beliefs

  1. Our investment motive should drive everything we do
  2. Asset prices will revert to fundamentals
  3. Persistent exploitable investment market inefficiencies are rare
  4. Illiquid assets come with extra risk
  5. Asset risk is reduced by improved environmental, social and governance performance
  6. Our focus should be long term, while balancing the needs of members who may retire soon
  7. Complexity is to be avoided

Our portfolio design

When designing and constructing our portfolios we:

  • diversify risk not assets
  • understand the rationale for using any single investment (e.g. to achieve capital growth or protect against inflation) and its risk-factor characteristics
  • value simplicity
  • make every decision in the context of its value to the entire portfolio
  • make real-time decisions
  • know efficient implementation is a crucial competitive advantage