In a response to members’ risk aversion in the dark days of the financial crisis, the $2.5 billion LUCRF Super has overhauled its investment options and will begin running four major new strategies in the coming weeks. On the investment risk spectrum, the options range from high-growth through to conservative, and run in alignment with four set splits between growth and defensive assets: 90/10, 77/23, 50/50 and 30/70. Greg Sword, CEO of the industry fund, said the new options were introduced to provide members with options that stood a better chance of satisfying their risk appetites.

He said the market crash of 2008 drove home the need for an investment option that was primarily conservative but maintained some exposure to growth assets. “The problem with member investment choice is that in 2008 a lot of people wanted to switch to cash, which they did. If we had an option between cash and the balanced fund we might have been able to do better for some people.” The new options, slated to go live from this month onwards, will accomapany the fund’s current offerings: cash, passive listed property, balanced, domestic and global indexed equities, active Australian shares and active international shares. LUCRF’s new balanced option, which manages a 77/23 split between growth and defensive assets, will remain the default fund for members.

“Our default fund will still be our primary offer and will be our MySuper product – if it comes in. The other options will help members increase or decrease their risk exposures in a balanced way.” Members would be able to spread their balances across the investment options if they choose to, Sword said, because the selfadministered fund had modernised its administration capabilities through DST Global Solutions’ Bluedoor platform. Meanwhile, as reported in I&T News recently, the industry fund appointed Don Russell, chair of NSW State Super and a former senior adviser to Paul Keating, to become the first independent chair of its investment committee. He replaced Antony Thow, the Victorian secretary of LUCRF’s employee sponsor, the National Union of Workers, who stepped down to run for a Senate seat in Victoria as the third candidate on the Labor Party’s ticket.

Join the discussion