Investment Centre
Investment Managers
Investing can be complex. It requires experience, skill, and most importantly, time and focus. For this reason the Trustee employs the services of an asset consulting firm. It is the role of our asset consultant to assist the Trustee to do the following:
- Set the benchmark asset allocation to meet the performance objectives of each investment option
- Select underlying investment managers with expertise and experience in each asset class
- Monitor the performance of the underlying investment managers
- Monitor the performance of each investment option
- Recommend changes to the investment mix or investment managers.
The performance of the asset consultants, investment managers and the investment options is reviewed regularly by the Trustees.
Underlying Investment Managers as at 1 May 2010
| Investment Managers | Target weight | Benchmark |
| Australian Equities | ||
| Vanguard (Passive) | 50.0% | S&P/ASX300 Accumulation Index |
| Cooper Investors | 25.0% | S&P/ASX200 Accumulation Index |
| Concord Capital | 25.0% | S&P/ASX200 Accumulation Index |
| Total | 100.0% | |
| International Equities | ||
| Vanguard (Passive) | 60.0% | MSCI World (ex-Australia) Index with net dividends reinvested in $A (hedged) |
| Altrinsic | 10.0% | MSCI World (ex-Australia) Index with net dividends reinvested in $A (unhedged) |
| Zurich Global Thematic | 10.0% | MSCI World (ex-Australia) Index with net dividends reinvested in $A (unhedged) |
| Trilogy | 10.0% | MSCI World (ex-Australia) Index with net dividends reinvested in $A (unhedged) |
| Genesis (Emerging markets) | 10.0% | MSCI Emerging Markets Index with net dividends reinvested in $A (unhedged) |
| Total | 100.0% | |
| Direct Property | ||
| DEXUS Wholesale Property Fund | 66.7% | Mercer Unlisted Property Funds Index (Gross Median Return) |
| Charter Hall Property Office Fund | 33.3% | CPI + 5.0% pa |
| Total | 100.0% | |
| Global Listed Property | ||
| LaSalle | 100.0% | UBS Global Real Investors Index in $A net of withholding tax (hedged) |
| Total | 100.0% | |
| Australian Cash | ||
| BlackRock (Passive) | 100.0% | UBSA Bank Bill Index |
| Total | 100.0% | |
| Structured Beta | ||
| Bridgewater All Weather | 100.0% | UBSA Bank Bill Index + 3.0% pa |
| Total | 100.0% | |
| Hedge Funds | ||
| K2 Advisors Diversity Fund, Ltd. | 100.0% | UBSA Bank Bill Index + 1.0% pa |
| Total | 100.0% | |
| Infrastructure | ||
| Hastings Utilities Trust of Australia | 100.0% | CPI + 5.0% pa |
| Total | 100.0% | |
| Australian Fixed Interest | ||
| Schroder | 70.0% | UBSA Composite Bond Index |
| Vianova | 30.0% | UBSA Composite Bond Index |
| Total | 100.0% | |
| International Fixed Interest | ||
| BlackRock (Passive) | 100.0% | Barclays Capital Aggregate Index in $A (hedged) |
| Total | 100.0% | |
| Global Inflation Linked Bonds | ||
| BlackRock (Passive) | 50.0% | Barclays Capital World Government ILB Index in $A (hedged) |
| PIMCO | 50.0% | Barclays Capital World Government ILB Index in $A (hedged) |
| Total | 100.0% | |
| Cash | ||
| BlackRock (Passive) | 100.0% | UBSA Bank Bill Index |
| Total | 100.0% | |
Managers with a performance fee for MER calculation
As at 1 April 2010
Around 15% of the Fund's assets are subject to potential performance fees if they achieve certain investment performance targets.
Manager/ Fund |
Asset Class | Performance fee basis | Calculation period |
Low | High* |
| Cooper Investors AE Fund |
Australian Shares | 10% of performance in excess of benchmark. | Monthly (3 year rolling high water mark) |
Nil | 0.60% |
| Charter Hall CPOF | Property | Up to 15% of performance between 11% and 13% p.a. and 20% of performance in excess of 13% p.a. (calculated over 3 years). |
3 years | Nil | 1.80% |
| K2 Advisors | Liquid Alternatives | 15% of outperformance over Bank Bill Rate + 1.0% p.a. |
Annually | Nil | 1.50% |
| Macquarie RMBS | Liquid Alternatives | 15% of outperformance over Bank Bill Rate + 0.15% p.a. |
Quarterly | Nil | 0.70% |
| Hastings UTA | Private Capital | 10% of out performance < benchmark + 2% p.a., plus 15% of out performance > benchmark + 2% p.a., calculated up to a maximum of 20% p.a. absolute return. | Half-yearly (Continuous high watermark) |
Nil | 1.50% |
| *Performance Fee is based on a +1 standard deviation variance from the expected performance of the Manager. This may differ from any fee cap that applies. | |||||
Asset consultant
Towers Watson
