Investing for resilience: Real Assets

Real Assets are things you touch or see—tangible investments like bridges, roads, buildings, agriculture, timberland, or other assets like wind or solar farms. Key benefits of Real Assets are: a) they behave differently from other asset classes like shares, helping to provide protection in volatile markets; b) greater certainty of future income c) protection again inflation, e.g. direct property and infrastructure and d) sustainability—positive, viable investment returns with strong corporate responsibility.

At VicSuper, our Real Assets portfolio consists of infrastructure, property, agriculture and timberland investments. While we’ve invested $1.3 billion in Real Assets in the last two years alone, we have continually improved the scale and quality of our Real Assets portfolio over the last 10 years.

Our long history as a Real Assets investor has enhanced the diversification of our investment structure by capturing new investment opportunities with positive sustainability features.

You can find out more about how we’re investing in Real Assets below.

Real assets 

Read more about our Real Assets in our Real Assets fact sheets (PDF).

Markets, performance and investment strategy

The first quarter of the new financial year was a volatile one for share markets with a rise in July, a fall in August, then a rebound in September.

Growth MySuper Investment returns

Despite this, the flagship VicSuper FutureSaver Growth (MySuper) investment option delivered a strong return of 8.18% over 12 months to September 2019.

Our Growth (MySuper) investment option was in the top 10 performing funds and also a top quartile performer over 1,3,7 and 10 years.1

Looking ahead, it seems that uncertainty will continue to dominate markets due to factors such as trade wars and rising geopolitical risk, central bank moves, and the global economic outlook.

The key focus of our investment strategy is to navigate market conditions over the medium to long term and to continue to diversify the portfolio. We’ve increased our investment in Real Assets which helps to diversify the portfolio and provide a smoother path of long-term returns by offsetting equity volatility.

1According to the SR50 MySuper Index component of the SuperRatings Fund Crediting Rate Survey for August 2019, returns for the VicSuper FutureSaver Growth (MySuper) investment option were in the top 10 of similar funds over 1,3,7 and 10 years as of 31/8/19, and above the top quartile returns over the same time periods. Note that past performance is not a reliable indicator of future performance.

VicSuper recognised as global responsible investment leader

PRI Leaders group 2019

VicSuper has been named among only 10% of global asset owner signatories that have been recognised as part of the PRI Leaders’ Group, announced in Paris recently at the PRI annual conference.

This inaugural initiative recognises outstanding leadership and showcases the best practices from signatories in responsible investing across all asset classes.

The 2019 PRI Leaders’ Group focused on the selection, appointment and monitoring of external managers in listed and private equity by asset owners. Signatories were scored in relation to governance, implementation and transparency.

VicSuper’s Chief Investment Officer, Andrew Howard said “Responsible investment is an integral part of the Fund’s overall investment approach and managing environmental, social and governance risks is key to our investment strategy. We believe that competitive long-returns and responsible investment can go hand in hand”.

 

Learn more about VicSuper’s responsible investment.

See the latest investment returns for all portfolios, read investment updates, and find out about how their super is invested on our website or login to your MembersOnline portal.

Investing for resilience: Real Assets

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Markets, performance and investment strategy

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Growth MySuper Investment returns

VicSuper recognised as global responsible investment leader

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PRI Leaders group 2019

To learn more about VicSuper’s responsible investment visit vicsuper.com.au/investments.

VicSuper members can see the latest investment returns for all portfolios, read investment updates, and find out about how their super is invested at vicsuper.com.au/investments or login to your MembersOnline portal.

1According to the SR50 MySuper Index component of the SuperRatings Fund Crediting Rate Survey for August 2019, returns for the VicSuper FutureSaver Growth (MySuper) investment option were in the top 10 of similar funds over 1,3,7 and 10 years as of 31/8/19, and above the top quartile returns over the same time periods. Note that past performance is not a reliable indicator of future performance.