It uses individual consultants for particular acquisitions or projects and prefers them to sit on the board of any investment they undertake.

While the fund has boosted its exposure to these alternative investments, Peacock says the committee does not have a pre-determined target allocation. It pursues such investments only if they are seen as worthy opportunities for long-term investors.

Its Australian equities focus is on quality blue-chip companies, with UniSuper’s largest holding consisting of a $758 million stake in BHP Billiton. The remaining companies in its five biggest domestic equity holdings are the big four banks.

Peacock says franking credits and dividend payments still make Australian equities good value for long-term investors.

UniSuper’s international equity holdings reflect a strong bet on technology. Its biggest bet is more than $100 million in Apple Inc. Companies such as Microsoft, Google, Hewlett-Packard Computers and Cisco Systems round out a tech-heavy list of UniSuper’s 10 biggest international equity investments.

 

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