This Statement of Investment Beliefs describes the way MTAA Super thinks about and approaches the investment of members' money. Our investment beliefs provide guidance for all investment decisions helping to ensure MTAA Super is a sustainable organisation.
The primary investment purpose of MTAA Super is to grow member savings by delivering long term investment returns above the rate of inflation to enable Fund members to improve their financial security in retirement. MTAA Super aims to deliver these returns with stability over the medium to long term.
High quality governance of the investment process is critical to the success of MTAA Super’s investments.
The Board of MTAA Super is ultimately accountable for all aspects of MTAA Super’s investments and will:
• only invest in opportunities that are well understood by the Board and management team.
• ensure in delegating responsibilities that there is appropriate alignment of interests and any conflicts are understood and well-managed.
MTAA Super can benefit from engaging external agents to provide advice and to implement the Fund’s investment arrangements, however sufficiently strong internal resources are appropriate and necessary to deliver on our investment mission.
Collaborating with and investing alongside like-minded investors can be an effective and efficient way of adding value.
MTAA Super operates in a competitive market for both investment ideas and retaining and growing its membership. Peer practice and performance is both informative and a risk consideration yet will not be the primary driver of investment strategies and decisions.
MTAA Super will specify return and risk objectives for each of its investment options, with broadly equal consideration given to return objectives and risk objectives in implementing investment strategies.
Stability of returns over the medium to long term is an important objective and we seek to manage the likelihood of negative returns.
Investment decisions should be focused on contribution to achieving the investment objectives of the relevant Investment Options.
Investment markets offer long term rewards for placing capital at risk (“risk premia”).
Diversification of return drivers provides the opportunity to reduce portfolio risk.
Long term strategic allocation to asset classes is the principal driver of returns and risks.
MTAA Super has an integrated approach to Environmental, Social and Governance and these matters are important considerations which are taken into consideration in making investment decisions.
Opportunities from active management vary across asset classes and strategies, and over time. Active management will be used where there is a high conviction that the manager’s skill will add value on a net return basis.
Alternative assets, which are often illiquid, can have beneficial return and risk characteristics making them attractive long-term investments consistent with the investment time horizon of retirement savings.
MTAA Super should ensure that the Fund has sufficient liquid assets to meet its expected cash flow requirements in all reasonably anticipated circumstances supported by conservative liquidity stress tests and scenario analysis.
Fees, costs and taxes are permanent erosions of capital and should be given significant attention.
Stress testing is an essential part of ongoing risk management.