Our long-term vision
So members can enjoy a better future we focus on maximising investment returns over the long term*. We invest in a diversified mix of assets to grow members’ savings over time and balance this with an understanding of the risks we need to take to achieve this goal.
Four core investment beliefs are the foundation of our investment approach. These are supported by a rigorous governance framework and disciplined investment process.
Our four investment beliefs
- We aim to enhance member returns.
- We believe in active management – both asset allocation and stock selection.
- We use our scale to reduce costs and better structure investments.
- We’re aware of our responsibility to the broader community, consistent with our obligations to maximise benefits to members.
Investing for you
Super is the largest asset most people will ever own, after the family home. It’s your money, and we invest to help make sure you’re going to get the most out of it.
Using our size to benefit members
As Australia’s largest super fund, we take advantage of opportunities that aren’t available to smaller funds. These include large unlisted assets like Kings Cross, Ausgrid and WestConnex.
READ MORE: UNDERSTANDING LISTED AND UNLISTED ASSETSStrong cashflows enable us to allocate funds to different asset classes without selling valuable long-term investments. This also helps keep transaction costs low, which benefits members’ returns.
In-house investment expertise
Our in-house investment team invests members’ assets to meet the objectives of each investment option. The investment team selects external managers and directly manages assets in the portfolio. Our internal investment capability enables us to invest at a lower cost and gain access to high quality investment opportunities. Good returns and lower costs have resulted in a better ‘net benefit’ for members*.
READ MORE NET BENEFIT AND WHY IT’S IMPORTANT TO YOUR SUPERWe’re active managers
We believe an active management approach delivers the best long-term returns. That’s why we select specific sectors, assets and stocks that have the potential to outperform the broader market. We also use index managers in some options to lower overall portfolio costs or where active management opportunities are smaller.
Investing globally for members
With teams in Australia, Beijing, London and New York, we are able to access insights and opportunities in targeted global investment markets. Our on the ground presence also allows us to efficiently monitor our global investment portfolio and make timely investment decisions.
Investment process
Our investment process is designed to protect and enhance the interests of our members, so they can achieve the best possible retirement outcome.
-
Asset allocation
AustralianSuper performs an annual review for each investment option to determine the strategic asset allocation and expected ranges for each asset class in the investment options. We also review each option's investment objectives and risk tolerances to ensure they remain appropriate for members.
Some PreMixed investment options have a dual objective to beat CPI plus a margin and to outperform the median peer funds. To achieve these objectives we invest the portfolio actively relative to the strategic asset allocation. The strategic asset allocation is the starting portfolio for our active management decisions and broadly represents the risk and return profile that we expect to deliver on the CPI objective over the long run.
Indexed Diversified option's strategic asset allocation represents a static 70% growth/30% defensive allocation to passive investments. For the DIY Mix investment options, the strategic asset allocation represents the expected investment exposure based on each option's market benchmark investment objective.
AustralianSuper's active management approach means that the amount we invest in each asset class can change throughout the year. The investment team analyses a range of investment factors to adjust the actual asset allocation of each investment option over the economic cycle. This asset allocation approach enables our investment team to respond to both risks and opportunities as the market environment changes.
-
Investment people
We work with highly qualified teams and specialists to ensure we have the right checks and balances in place when making investment decisions.
Investment Committee
Our investment committee is delegated by the Board to oversee and monitor our investment processes and guidelines. It plays a crucial role in the investment governance for members by:
- endorsing the strategic asset allocation and ranges for each investment option;
- monitoring the performance, investment objectives and risk and liquidity constraints of each investment option;
- approving investment guidelines, asset class strategies and large direct investments; and
- making recommendations to the Board.
Internal and external investment teams
We use a mix of in-house and external fund managers to manage members’ super.
Our in-house teams of investment specialists work within asset classes to:
- research the economic environment and investment markets and make recommendations on and manage the asset allocation for our PreMixed investment options;
- identify opportunities and risks;
- actively manage investment portfolios with the delegated authority from the Board and Investment Committee
We engage specialist external managers to invest money in different asset classes. They’re chosen based on their:
- company size, strength, management structure and ownership;
- investment philosophy, processes and style;
- investment team reputation and experience; and
- track record and funds under management.
Asset consultants
Asset consultants provide strategic advice and research to our investment team on asset allocation, strategy, sectors within each asset class and investment managers. They work with the Investment Committee and the internal team.
*AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey, SR50 Balanced (60-76) Index to 30 September 2023. Returns from equivalent investment options of the ARF and STA super funds are used for periods before 1 July 2006. Investment returns aren’t guaranteed. Past performance isn’t a reliable indicator of future returns.