Our long-term vision
We work hard to maximise investment returns over the long term, so members can enjoy a better future. As long-term investors, we focus on investing in a mix of quality assets that can grow members’ savings over time. We balance this with an understanding of the risks we need to take achieve this objective and deliver competitive returns against our peers.
Our four core investment beliefs are the foundation of our investment approach. A rigorous governance framework and disciplined investment process help us allocate and manage members’ savings and maintain our position as one of Australia’s leading super funds.
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Our four investment beliefs
- We return all profits to members.
- 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.
We use our size and scale to benefit members
As Australia’s largest super fund, we can take advantage of opportunities that aren’t available to smaller funds.
Strong cashflows enable us to reallocate funds to different assets classes without selling valuable long-term assets. This also helps keep transaction and tax costs low, which benefits members’ returns.
We’ve been gradually increasing the amount of assets our in-house investment team manage, which is helping to lower costs and access better investments for members.
We’re active managers
We believe an active management approach is the best way to invest. That’s why we select specific sectors, assets and stocks that we believe 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.
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AustralianSuper aims to reduce the impact of volatility of any one asset class or strategy by diversifying across and within asset classes.
AustralianSuper invests in direct property and infrastructure, which perform differently to conventional growth assets and offer attractive returns during times of share market volatility.
Our dynamic asset allocation approach gives us the flexibility to adjust portfolios in response to market conditions as necessary, and apply strategic tilts within each asset class where we believe it can add value.
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.
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Asset allocation
Asset allocation is one way AustralianSuper looks to outperform and increase member savings over the long term.
AustralianSuper sets annual strategic asset allocations for each investment option in June each year. Within each option expected ranges for our levels of investment in each asset class are also set. We also review each option’s investment objectives and risk tolerances to ensure they remain appropriate.
Rather than strictly rebalancing to strategic asset allocations during the year, AustralianSuper dynamically manages assets within the tolerance ranges for each investment option. This dynamic asset allocation enables our investment team to respond to changes in the market environment and respond to both risks and opportunities.
Check the strategic asset allocation of our investment choices.
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Investment people(1)
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.
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Investment policies(1)
How we manage currency - pdf, 98KB
Our decision-making process
There are nine elements that underpin our investment process.
- Investment strategy: we set, approve and monitor the investment strategy.
- Investment objectives: we set specific objectives for each of our investment options, including defining the risk and appetite objectives and performance target.
- Strategic asset allocation for each of the investment options: we define the strategies within risk and liquidity constraints and implement performance and risk testing.
- Portfolio allocation: we allocate the capital received in each investment option in line with the asset allocation outlook, manage capital allocation to the portfolio and define and rebalance the tactical asset allocation.
- Asset class mix decisions: we define and approve each asset class’s objectives and manage the capital allocated to each asset class or sub asset class.
- Investment manager selection: we appoint the internal and external managers who select our securities, monitor their performance and apply consistent initial and ongoing due diligence.
- Share selection: we conduct research, then select the shares within the constraints of defined investment manager agreements and internal investment mandates. We manage the portfolio and the capital allocation in line with our objectives, corporate actions and governance rights.
- For direct unlisted assets such as property and infrastructure, we identify, evaluate ,conduct due diligence and make decisions to purchase or dispose of investments. We are also responsible for montoring their ongoing performance
- Implementation: we trade securities within the constraints of defined investment management agreements and internal management mandates