Preserving Capital in Volatile Markets
For the purposes of managing investments within the objectives set for each investment option the Board has determined the mix of assets and established the strategic asset allocation (target) for each asset class within the investment option. In the case of the Cash, Conservative, Balanced and High Growth Options it is possible for these options to be balanced precisely to the Strategic Asset Allocation (SAA). However, in the case of the Fund's default option (Growth), in which over 90% of the assets of the Fund are invested, it is not possible for this option to be balanced to the SAA and therefore the Board has established investment ranges around each asset class to cater for Fund cash flows and market movements.
In more usual market conditions it would be expected that physical exposure to particular asset classes would be maintained within the stated strategic ranges. However, in the current extreme market conditions it is the Board's view that it is in the best financial interests of members for it to maintain larger (overweight) exposures to cash and lower (underweight) exposures to listed equities. These tactical decisions have enabled the Fund to focus on the preservation of member's capital during the current financial crisis and as a result achieve results better than most other superannuation funds.
The Board and its advisers continue to actively monitor and manage the Fund during this period of unprecedented market volatility to ensure that appropriate and prudential exposures to key asset classes are maintained with a view to re-balancing to the Fund's published long-term asset allocation ranges once investment markets have returned to more normal conditions.
If you would like information about the investment options available to you please refer to the Board’s Product Disclosure Statement, in particular “Your Guide to investment choice”.