Investment objectives for the portfolios

The investment strategy has the following two objectives:

  • To achieve close alignment between the purpose of the Fund and the investment strategy; and
  • Greater focus on short-term protection of your retirement savings in the event that markets deliver weak investment returns.

These objectives are achieved in two ways via the Fund’s life stage model:

  • By investing a greater allocation to risky assets with a higher expected investment return for member’s with a long term investment horizon; and
  • Adopting a conservative strategy for member’s that are close to retirement.

Important note:

The Trustees considered a possible alternative answer to the question on why the Fund exists. The alternative answer is that the Fund exists as a tax efficient savings vehicle allowing members to invest at wholesale investment fees instead of retail fees. If this was the purpose of the Fund, it would need to provide a very wide range of investment options. The Trustees believe that most members simply want reasonable retirement benefits, and only very few members would make use of such wide investment choice. The Trustees therefore do not regard this objective as the main purpose of the Fund.