Vision Super Asset class strategies (Last updated: 2 August 2018)
Outperform the S&P/ASX 300 Accumulation Index by 1% p.a., after fees, over five years or more;
Keep the overall MER within Australian equities below 0.35% p.a.;
Outperform the market in down markets (average outperformance in months where the ASX 300 produces a negative return);
Minimise the number of managers to five or less unless there is a compelling return and/or risk proposition; and
Manage efficiently for after tax outcomes.
Performance benchmark: S&P/ASX 300 Accumulation Index
IFM Low Carbon Emission Mandate 53.0%
Perpetual Small Cap 7.5%
Kinetic Investment Partners Ltd - Small Cap 7.5%
Airlie Industrial Shares 17.0%
Wavestone Australian Equities 15.0%
Outperform the MSCI All Countries World Index by 1% p.a., after fees, over five years or more;
Keep the overall MER within international equities below 0.40% p.a.; and
Minimise the number of managers to six or less unless there is a compelling return and/or risk proposition.
Performance benchmark: MSCI All Countries World ex Australia Net Dividends AUD
SSGA Enhanced Indexed 52.5%
Harris Global Equities Benchmark Unaware Value 17.5%
Baillie Gifford Benchmark Unaware Growth 15.0%
Stewart Emerging Markets 8.0%
Sands Capital Emerging Markets 7.0%
Sector objectives - N/A
25% S&P ASX300 Accumulation + 5% p.a.
75% MSCI World ex Aust Net Div (Unhedged) + 5% pa.
Mercer/IPD Australian Property Pooled Fund
Absolute Return Multi Strategy (ARMS)
Return at least 50%/50% bonds/equities index, over the long-term;
Mid-risk profile between equities and government bonds;
Diversification, particularly in equity down markets, and also in rising interest rate environment;
Relatively high liquidity; and
Not overly expensive (sector MER below 0.8% p.a.).
Performance benchmark: Bloomberg AusBond Bank Bill Index + 4.5% p.a.
SouthPeak Real Diversification Fund 50%
Invesco Global Targeted Return Fund 50%
Return in excess of equities index, over the long-term;
Risk profile lower than equities;
Diversification, particularly in equity down markets, and also in rising interest rate environments; and
Relatively high liquidity.
Performance benchmark: Bloomberg AusBond Bank Bill + 5% pa.
Bridgewater Pure Alpha Fund 100%
A return premium of at least 1.5% p.a. above a 50%/50% index of Bloomberg AusBond Government Bond 10 Years+ and ASX 300 Accumulation Index;
Mid-risk profile between equities and government bonds;
Diversification, through allocation to different risk exposures (e.g. regulatory);
Positive correlation to inflation to provide some inflation hedging; and
Moderate cost - sector MER below 0.60% p.a.
50% Bloomberg AusBond Government 10yr+Index
+ 50% S&P/ASX 300 Accumulation Index + 3% pa
IFM Australian Infrastructure 50%
IFM International Infrastructure 50%
To broadly match the return of its benchmark (Mercer/IPD Australian Pooled Property Fund Index) net of fees over ten years;
To target high quality core property portfolios with defensive characteristics;
Diversification, through an allocation to different property sectors (e.g. retail and office) and geographies; and
Moderate cost – sector MER below 0.60% p.a.
Listed Property - International: FTSE/EPRA NAREIT Developed Rental Index Hedged in AUD (Net of Fees)
Unlisted Property: Mercer/IPD Australian Property Pooled Funds (Net of Fees)
AMP P Units 35.0%
Resolution Capital GLOBAL REIT 25.0%
Performance benchmark: S&P/ASX 200 Australian Real Estate Investment Trust Index
SSGA Passive AREIT 100%
Low risk, which exhibits defensive characteristics and provides downside protection (a portfolio of longer duration investment grade government bonds and credit);
Performance consistent with the custom benchmark for the sector (50% Bloomberg AusBond Composite All Maturities Bond Index and 50% Barclays Global Aggregate ex-Australia Index (Hedged in AUD));
High liquidity; and
Low cost – sector MER below 0.20% p.a.
50% Bloomberg AusBond Composite 0 + year Index
50% Barclays Glob Aggregate Composite.
Amundi Aust Fixed Interest 50%
Brandywine Global Opp Fixed Income 15%
Amundi Int’l Fixed Interest 35%
A stable yield premium to government bonds and cash, with performance of around 3% p.a. above the Bloomberg AusBond Bank Bill Index net of fees over three years;
A mid-risk profile between equities and government bonds;
Diversification through exposure to different debt markets (e.g. bank loans, emerging markets debt, asset backed securities, etc.);
Low duration strategies to limit direct exposure to rises in interest rates; and
Moderate cost - sector MER below 0.40% p.a.
Performance benchmark: Bloomberg AusBond Bank Bill Index + 3% p.a.
IFM Specialised Credit 50%
Barings Global Loan and High Yield Bond Fund 50%
Internal Cash Portfolio Investment Policy
To outperform the consumer price index (CPI) over rolling three year periods.
The portfolio is expected to achieve positive returns over all periods.
To provide liquidity for the purpose of daily cash flow requirements for the Cash options.
If the Cash Investment Portfolio is used for all Investment options with a Cash allocation, then it must also provide liquidity for the purpose of daily cash flow requirements and the asset allocation rebalancing of all Investment options.
Performance benchmark: Bloomberg AusBond Bank Bill Index
The Internal Cash Portfolio Investment Policy sets out
Security exposure limits
Counterparty / Issuer limits
Credit Rating exposure limits
Tail Risk Hedging
No sector objectives per se. This is an overlay over the DB LASF Investment option.
The TRH program is a DAA tool which will be turned on and off as considered appropriate. When active, the objective of the program is to provide a better risk return profile for the LASF Investment option than a portfolio with a similar risk profile without the program (i.e. one with more bonds and less equities).
Performance benchmark: No asset class benchmark
Portfolio Investment Risks: 0.63
Reference Investment Portfolio Equity Beta: 0.63
Attachment Point: 15%
Investment Hedge Horizon: 12 months
Target Expense (Costs) Level (basis points): 50 to 70 basis points
PIMCO Tail Risk Protection: 100%