AERF investment objective, strategy and guidelines

Recent changes

The Trustee has implemented a new investment objective and strategic asset allocation and appointed new investment managers as outlined below.

The investment objective is the investment performance that the AERF aims to achieve. The investment strategy is the method used to meet the objective. The investment guidelines outline ‘where’, ‘what’ and ‘how’ much a fund can invest.

With a typical member investment time-frame of 25 years or more, the Trustee has implemented a diversified investment strategy. This aims for long-term growth and moderate volatility through diversified investments across the major asset classes.

Investment objective

The investment objective is to provide members with long-term growth and moderate volatility through a diversified investment portfolio. This includes exposure to growth assets (equities and property), alternative assets (hedge funds, private equity and infrastructure) and defensive assets (fixed interest and cash).

The Trustee aims to achieve this by:

  • investing in a range of managed funds offered by the appointed investment managers
  • adherence to the fund’s guidelines for the proportion of the fund’s assets invested in each asset class
  • enhance discipline in the management of the assets. 
    Investment approach

    The AERF does not allow members to choose an investment option. The Trustee invests the fund’s monies in managed funds offered by the appointed investment managers.

    The Trustee regularly monitors investment performance.

    The AERF obtains exposure to the various asset classes through its investments in the managed funds of the appointed investment managers. This mix of assets means members spread both their risks and returns.  Some cash is also retained in a bank account to meet day-to-day requirements, including payments of member benefits.

    Investment guidelines

    The AERF has investment guidelines which determine the AERF’s asset allocation strategic asset allocation and allowable ranges as follows:

    Investment managers

    New investment managers have been selected by the Trustee to implement the AERF’s revised investment objective and investment strategy. The investment managers use a multi-manager investment approach, whereby a number of specialist investment managers are chosen to manage the investments within each asset class. This approach aims to provide greater consistency of performance in variable market conditions compared to a single manager and reduce risk.

    MLC Investments Limited (MLC) will manage international shares, property, alternative investments, Australian fixed interest, international fixed interest and cash assets. MLC uses a ‘manager of managers’ investment approach, which means that MLC does not directly manage investment funds but rather manages the selection and combination of the specialist investment managers for these asset classes.

    Perpetual Investment Management Limited (PIML) will manage the Australian share assets of the AERF through investment in Perpetual’s Select Australian Share Fund, which uses a multi-manager investment approach that includes PIML as a specialist investment manager.

    Investment Policy Statement

    An Investment Policy Statement (IPS) has been adopted by the Directors of Perpetual Superannuation Limited, Trustee of the AERF.

    The purpose of the IPS is:

    • to serve as a working document to assist in the ongoing prudent and efficient management of the Fund’s investment arrangements

    The IPS can be accessed here.


    Disclaimer:
    This information has been prepared by Perpetual Superannuation Limited (PSL) ABN 84 008 416 831 AFSL 225246 RSE L0003315.. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.

    The PDS for the AERF, issued by PSL, should be considered before deciding whether to acquire or hold units in the fund. The PDS can be obtained by calling 1800 677 424 or visiting our website www.perpetual.com.au.

    Neither Perpetual Limited ABN 86 000 431 827 or its subsidiaries guarantee the performance of any fund or the return of an investor’s capital.