Our investment beliefs

The Board of Vision Super is guided by the following set of Investment Beliefs when decisions are made about the investment portfolio on behalf of members and sponsors. The Defined Benefit Plan and MySuper Option have tailored beliefs due to their specific circumstances. We also have a number of Investment Beliefs that are common to all options. The Board of Vision Super is committed to fostering healthy debate, a diversity of views and transparency within the context of these beliefs.

Whole of Fund

Whole of Fund

Belief 1
We believe that diversification is an important source of risk reduction. Asset class diversification is our major source of diversification. We believe that there can be too much diversification within asset classes, which may dilute returns without reducing risk.

Belief 2
We believe passive management (where available) is our default position for investing. Evidence is required to justify and engage in active management. The higher the cost of active management, the greater the level of conviction required.

Belief 3
We believe that environmental, social and governance (ESG) issues and sustainability considerations are important within the context of optimising net risk-adjusted returns.

Belief 4
We believe that managing money on behalf of other people requires us to have high standards of openness and transparency. We take this responsibility seriously and commit to being at the forefront of disclosure within our industry and to reviewing our internal practices regularly to ensure that they meet best practice standards.

Belief 5
We believe that we can capture additional returns from accessing the illiquidity risk premium and being a patient investor. We also believe that a flexible investment strategy will add value, so will manage overall levels of liquidity in the portfolios to achieve this goal.

Belief 6
We believe that effective decision making is facilitated by appropriate delegation and reporting governance structures.

Belief 7
We believe that different markets can have materially different reward for risk metrics from time to time. Markets are often inefficient because they represent the collective actions of human beings who are prone to behavioural biases. These biases can be exploited by disciplined long term investors.

Defined Benefit Plan

Defined Benefit Plan

Belief 8
We believe that meeting the real long-term target returns (after fees and taxes) is most important with a focus on achieving the returns assumed by the Actuary. Negative returns have adverse consequences on meeting this primary target, so we integrate an element of downside risk management into our investment processes.

Belief 9
We believe our primary risk is the need to make additional calls on employers to fund liabilities. This has ramifications for our relationship with key stakeholders and on their businesses.

Belief 10
We believe that maximising net returns is more important than fees in their own right. We have a strong awareness of overall fees paid. We seek to achieve “value for money” for our fees bearing in mind market comparatives and the overall net return goal.

Belief 11
We believe that an appropriate timeframe for making investment decisions is three to five years. We consider investment decisions in the context of the investments required to meet the long-term nature of the liabilities of the Defined Benefit Plan.

My Super options

My Super options

Belief 8
We believe that real long-term returns to members are most important. However, we recognise that our members have choices and our returns relative to other MySuper options over rolling three years are important in a competitive landscape.

Belief 9
We believe that our primary risk is not meeting our real return objectives for members. Under performing other MySuper options over rolling three year periods is also a material risk.

Belief 10
We believe maximising net returns is more important than fees in their own right. We are fee conscious and we aim to capture benefits from our scale to achieve fee reductions on behalf of our members over time. We seek to achieve “value for money” for our fees bearing in mind market comparatives.

Belief 11
We believe an appropriate time frame for investment decisions to pay off is three to five years. We consider these decisions in the context of the MySuper Option with its members in aggregate having a long-term investment horizon.

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