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Our diversified pre-mixed options

Take a look under the bonnet

The design of our pre-mixed investment options starts with the investment philosophy, emphasising consistent, long term risk-adjusted returns, with a focus on fees and strong governance.

This means we deliberately avoid things like speculative trading, other highly speculative styles of investment, or appointing investment managers with minimal research. We take considered, long term positions, use a blend of investment manager styles for diversification and make decisions based on extensive process and transparent research.

The risk and return targets are set for each of the pre-mixed options. This establishes the unique personality characteristics of each option to align with different member scenarios.

We set an asset allocation for each option with the highest chance of achieving these desired targets, effectively balancing the return vs. risk objectives set for the option.

The core of each option’s growth engine is invested in Australian and International equities, property, infrastructure, with fixed interest, cash and some alternative assets in the portfolio to achieve the desired ratio of growth and defensive assets.

At the option portfolio level, each asset class – and their combination – plays a role to diversify risk, maximise return probability, and give the option its overall characteristics.

At the asset class level, this story is repeated. We select each investment manager for the style they bring to the asset class portfolio and the part they play helping it do its job in the overall investment option portfolio.

The diversified pre-mixed investment options have two additional super powers.

  • We hold positions in a variety of assets open to institutional investors only. This includes high quality unlisted infrastructure and property, complementing the overall portfolio.
  • We use the deep research capabilities and skills of our investment consultant to identify opportunities for Dynamic Asset Allocation positions. This enables us to temporarily ‘tilt’ the option’s portfolio weighting across and within asset classes to capture potential value as different market opportunities arise.

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