How we invest

MTAA Super aims to maximise our members’ returns during their working life and in retirement while protecting their accumulated retirement savings from large fluctuations. 

Our investment strategy

Our investment strategy is to build a diversified portfolio of assets that balances investment returns and risks. We achieve this by investing in a combination of growth assets and defensive assets.

The growth assets we invest in include shares, infrastructure and property. The returns from growth assets come mainly from capital gains and income in the form of dividends. Growth assets generally offer the greatest potential for long-term growth, but the returns can fluctuate and returns may be negative from time to time.

The defensive assets we invest in include fixed interest and cash. The returns on defensive assets are mainly from interest. Defensive assets generally offer less potential for long-term growth than growth assets but returns are generally more stable and have a relatively low level of risk. Negative returns are possible in the case of fixed interest, however cash returns are generally positive.

MTAA Super also invests in a number of ‘alternative’ investments or asset classes such as private equity, alternatives credit, property and infrastructure. These investments are less frequently traded than some other assets classes (such as shares, for example) and can be in both domestic and international markets. Assets such as property and infrastructure can have long term leases and are not directly linked to share markets. As such, they provide income streams to the Fund and provide a buffer against the short-term fluctuations of share markets.

Asset allocation

MTAA Super’s Pre-mixed options are Conservative, Income-Focussed, My AutoSuper (Balanced) and Growth. These options invest in a range of different asset classes. With the Pre-mixed options, the asset allocation is constructed with the aim of achieving the option’s specific investment return objective.

In comparison, each of the Asset Class options invests in one asset class only. The name describes the single asset class for the option: Cash, Diversified Fixed Interest, Australian Shares and International Shares.

The Trustee sets medium to long-term risk and return targets for each of the Fund’s investment options. It then sets a Strategic Asset Allocation (SAA) for each option with the aim of achieving the option’s investment return objective. 

You can locate and view the investment objective and SAA for each investment option via the Your Investment Options page. The SAA and ranges are reviewed by the Trustee at least annually.

For the Pre-mixed investment options, the Trustee may adjust the asset allocation and make portfolio adjustments within the SAA ranges without notice. This allows the Trustee some flexibility to adopt tactical asset allocations in response to market movements. 

From time to time the actual asset allocations may differ from the SAA for the Pre-mixed options due to market fluctuations, new investment opportunities and irregular cash flow levels. Differences may also result from tactical moves (within the SAA ranges) to position the portfolio for current market conditions.

For example, if the share market falls, the proportion allocated to shares in the Pre-mixed options may decrease and the allocation to other assets classes in the options may increase.

While the Trustee seeks to ensure that variations between the actual and strategic asset allocations of all investment options are managed within the ranges as outlined, in times of extreme market volatility the actual and strategic asset allocations can differ significantly.

The actual asset allocation figures for all investment options are updated monthly. You can view the actual asset allocation for each investment option via the Your Investment Options page.

Related information 

• Your investment options
• Investment Beliefs
• Asset Classes
• Valuation of Assets
• Environmental, Social and Governance (ESG) Risks
• Active Ownership
• Industry Collaboration
• Share Voting
• Top 20 Australian Listed Shareholdings
• Change investment options