Our investment beliefs
Our fundamental purpose when we invest is to improve our clients’ financial well-being, especially in retirement. This purpose is reflected in our investment beliefs.
We believe our duty to act in members’ best financial interests is paramount and, with this in mind, believe that improving the environmental, social and governance (ESG) profile of portfolio assets will enhance long-term, risk-adjusted performance.
|Meeting client objectives||Investment Strategy||Investment Management|
|The return and risk profile of the investments we choose will always be aligned with our client’s lifestyle objectives
||Asset allocation is the main driver of investment outcomes for our clients. We manage asset allocation actively within a longer term strategic framework but with a bias to preserving capital when market conditions are highly uncertain.
||We are biased towards strategies that are expected to outperform in falling investment markets
|Our primary objective for many clients is to generate sustainable investment returns throughout retirement
||We diversify across asset classes, investment managers and individual securities. We expect diversification to reduce risk and increase the reliability of returns, but it will not provide protection against all economic scenarios
||We will only use active management in those asset classes where we believe value can be added, and where we have a high level of conviction in the manager’s skill
|We have integrated environmental, social and governance (ESG) risk factors into our investment strategy with the aim of improving the long-term, risk adjusted performance of our investments
Governance and risk management
- We believe high quality governance of the investment process is critical to successful outcomes
- Our governance is managed by our board, investment committee, internal investment team and external agents
- We expect robust corporate governance and sustainable practices from all investment partners that we work with
- We are prepared to invest in illiquid assets, provided this does not compromise our ability to meet expected cash flow requirements in all reasonably anticipated circumstances