As at 31 December 2022, we have exposure to China in the fund’s international listed equities investments as well as in the global fixed interest and alternative debt portfolios. We have no direct exposure to China via our unlisted assets. It is important to note that other parts of the portfolio are exposed to China, even if they are not Chinese businesses. China is the second largest economy in the world and Australia’s largest trading partner. What happens in China matters for the global economy and asset markets. We also have exposure to many companies where Chinese consumers or businesses are major customers or suppliers, for example, global companies like Apple, Nike and Boeing, as well as resource companies such as BHP and Rio Tinto.
The exposure to China can vary significantly across the range of investment options. Generally speaking, investment options with a higher allocation to shares have more exposure to China.
Vision Super uses outsourced investment managers to manage our portfolios. These managers hold a wide range of equities, currencies and fixed interest securities on our behalf. At times, this has included very small amounts of Russian holdings. As at 31 December 2022, the Fund held one Russian asset (a government bond) that had a zero valuation (ie these bonds are worth nothing) as we are unlikely to be able to sell them. We have asked our managers to not make any new Russian investments until further notice. This is within the context of our overriding regulatory requirement to act in members’ best financial interests.
The government requires Australian superannuation funds to publish information about the investments they hold in each investment option on behalf of members. Our portfolio holdings reporting for each investment option allows you to see what your money is invested in, across a range of asset classes as defined by the legislation and derivatives.