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 mix of quality 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 of over 220 people invest members’ assets and almost half of them are managed by internal teams. This gives us more access to better investments and saves millions of dollars in costs every year. 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.
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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.
As part of the strategic asset allocation, a target foreign currency exposure is set for each of the PreMixed options. See how we manage currency.
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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.
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 monitoring their ongoing performance
- Implementation: we trade securities within the constraints of defined investment management agreements and internal management mandates
*Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns. AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60 -76) Index to 31 December 2021.