Vision Super Asset class strategies as at 30 June 2019
- 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%
- Realindex Small Cap = 15.0%
- Airlie Industrial Shares = 17.0%
- Wavestone = 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%
Opportunistic growth (private equity)
= 25% S&P ASX300 Accumulation + 5% p.a.
+ 75% MSCI World ex Aust Net Dividends (Unhedged) + 5% pa.
Absolute return multi strategy
- 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 + 3.5% p.a.
- SouthPeak Real Diversification Fund = 50%
- Invesco Global Targeted Return Fund = 50%
- Returns in excess of the Bloomberg Ausbond Bank Bill Index Plus 5% p.a. over the long term;
- Risk profile lower than equities;
- Diversification, particularly in equity down markets, and also in rising interest rate environments; and
- A high probability that the investments can be fully liquidated within a three month timeframe.
Performance benchmark: Bloomberg AusBond Bank Bill + 5% pa.
Manager configuration: 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
+ 1.5% 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.
- International Listed Property = FTSE/EPRA NAREIT Developed Rental Index Hedged in AUD (Net of Fees)
- Unlisted Property = Mercer/IPD Australian Property Pooled Funds (Net of Fees)
- AMP Capital Diversified Property Fund = 35.0%
- ISPT Core Fund = 40.0%
- Resolution Capital Global REITs = 25.0%
Performance benchmark: S&P/ASX 200 Australian Real Estate Investment Trust Index
Manager configuration: SSGA Passive Australian REITs = 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% FTSE World Government Bond Index
- Amundi Aust Fixed Interest = 35%
- Amundi Aust Inflation Linked Bonds = 15%
- Amundi Int’l Fixed Interest = 35%
- Amundi Int’l Inflation Linked Bonds = 15%
- 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 Fund = 40%
Barings Global Loan and High Yield Bond Fund = 25%
Brandywine Global Opportunistic Fixed Income = 35%
- To outperform the Bloomberg AusBond Bank Bill Index
- 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.
Performance benchmark: Bloomberg AusBond Bank Bill Index
The Internal Cash Portfolio Investment Policy sets out:
- Eligible Investments
- Security exposure limits
- Sector limits
- Counterparty / Issuer limits
- Credit Rating exposure limits
- Liquidity limits
Tail risk hedging
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
Manager configuration: PIMCO Tail Risk Protection = 100%