Why is an investment philosophy important?

Risk comes from not knowing what you’re doing” Warren Buffet, an outstanding long-term investor. An investment philosophy is a roadmap for your fund. Imagine you are driving without a map or a GPS. All you have are signs that appear from time to time telling you what towns or villages are coming up and how […]
Investment Strategy

Half a million Queenlanders put into retirement cohorts

QSuper has given a teasing snippet of its progress in placing default fund members into group cohorts. This month it moved $21.7 billion of savings for 440,000 members into separate group strategies designed for specific ages, account balance, contribution rate and gender, but has not revealed the nature of each strategy. The switch has occurred […]

Retirement adequacy – a common trap

Does ASIC’s MoneySmart website retirement income calculator produce estimates that contravene the Corporations Act? Consider the following BBQ conversation: Bill:  “I’m retiring next month and was just using ASIC’s MoneySmart calculator to see how much income my superannuation will provide me” Bob: “That is really of interest to me as I won’t be far behind […]
Investment Strategy

Gulf in best practice growing on alternatives

Some funds are “throwing money out of the window” on alternative assets, by not working out clear objectives for their allocations, according to a senior strategist at QIC. Speaking at the Conexus Fiduciary Investors’ Symposium on the Mornington Peninsula, Tony McKenzie, chief strategist for global multi-asset, told of a widening gulf between funds with highly […]
Hedge Funds

VicSuper starts stress-testing system

VicSuper is introducing a stress-testing system for its assets that will help manage risk on idiosyncratic allocations, such as its recent tailored fixed-income portfolio. Last year the fund moved from a passive index allocation to a tailored, global fixed income index, created with index provider, Barclays, and its principal fixed income manager, BlackRock, to reflect […]
Hedge Funds

LGS increases Aussie equities risk

Local Government Super (LGS) has converted a passive mandate to an enhanced passive mandate with State Street in a move to increase its active risk. The fund has awarded the manager a $780 million active Australian equities mandate. Chief investment officer Craig Turnbull told IM online the fund is giving State Street “more scope” on […]
Hedge Funds

Risk rises by degrees at Future Fund

The Future Fund is focused on building a portfolio of “somewhat risky assets” in order to achieve its government-mandated return, says its chair, David Gonski. “The government has the right to proclaim mandates for the board, and the current and original mandate set a target benchmark return for the fund of CPI plus 4.5 to […]
Hedge Funds

Sunsuper’s lifecycle derisking strategy

Sunsuper will launch its MySuper product on October 5, introducing a lifecycle derisking strategy for the 55-to-65-year-old age bracket. The product was designed based on feedback from its members, who said that they wanted their investment risk wound slowly down as they approach retirement. Andrew Nicholson, general manager of product at Sunsuper, said: “We tested […]