VicSuper's strategic asset allocation
We adopt a strategic asset allocation which is designed to achieve the investment return objective for each investment option with an estimated level of certainty. This allocation sets out the percentage within each option that is invested into one or more of four asset classes - equities, cash, fixed interest and real assets.
It is the strategic asset allocation which predominantly influences the expected risk and expected investment return for each option. VicSuper seeks to maintain an actual asset allocation during the year equal to the strategic asset allocation for each option.
The strategic asset allocation is set by VicSuper acting on advice from our principal asset consultant, Frontier Advisors Pty Ltd. VicSuper reviews the strategic asset allocation and investment strategy of VicSuper Fund from time to time including by way of dynamic asset allocation (explained below). As a result, the asset allocation and investment objective for each investment option may change.
Dynamic asset allocation
VicSuper's investment strategy allows for dynamic asset allocation ranges. This means VicSuper may:
- shift the asset allocation away from the neutral strategic asset allocation, if the conditions in the capital markets indicate a buy or sell opportunity
- invest in opportunities which provide compelling risk-adjusted returns over the one to three year horizon, but may not be long-term strategic investments.
Dynamic asset allocation aims to add incremental returns to VicSuper Fund member investment options, help reduce investment volatility and generate more stable returns over time. This approach allows flexibility in re-balancing asset allocations allowing VicSuper to be best placed to take advantage of opportunities in the market.
Understanding the asset classes
Learn about the four different asset classes that VicSuper invests in.
VicSuper's investment managers
To invest the Fund's assets, we engage the services of specialist external investment managers. For a list of VicSuper's investment managers please see a VicSuper Product Disclosure Statement, available from our Publications page.
Investment trust arrangements
VicSuper also invests in unlisted investment trusts which are managed independently of VicSuper. An investment trust allows a number of individual investors to pool their money with that of other investors.
This provides VicSuper access to a wide range of investments in listed equities including companies rated as sustainability leaders, private equity and real assets(property, agriculture and timber).
For a list of the unit trusts which VicSuper invests in, please see the VicSuper Member Guide.
Please note that these funds are named purely to illustrate the kinds of investments VicSuper makes. VicSuper may change the funds in which it invests at any time.