legalsuper’s investment process draws upon super expert investment advice and expertise, the selection of which is the subject of extensive due diligence.
The Board formulates legalsuper’s investment strategy and overall investment policy.
The Board is assisted by its Investment Committee, which is advised by both legalsuper’s asset consultant Willis Towers Watson ABN 45002 415349 and other advisers.
With over $3 billion under management, legalsuper has the scale to negotiate very competitive fees with investment managers in Australia and overseas. This means members benefit from wholesale fees, rather than higher retail fees if they were to invest directly. Indeed, some investment managers are only accessible to a super fund like legalsuper and not on a retail basis.
In selecting investment managers, the Trustee is guided by the advice of its internal investment specialist (David St. John), its asset consultant Willis Towers Watson, its Investment Expert (Dr Neville Hathaway) and the management team. The Trustee also receives presentations directly from investment managers.
Willis Towers Watson is focused on creating financial value for the world's leading institutional investors through its expertise in risk assessment, strategic asset allocation and investment manager selection. It is a division of Willis Towers Watson's Risk and Financial Services business, has over 700 associates worldwide and assets under advice of over $US2 trillion.
legalsuper has appointed a custodian (BNP Paribas Securities Services ARBN 149 440 291) to hold and report upon all investments other than investments in the Direct investment option (the DIO). Investments in the DIO are held custodially by Pacific Custodian Pty Ltd ACN 009 682 866. These appointments mean that there is segregation between the organisation that holds investments (the Custodian) and the organisations that manage investments (the investment managers).
The Custodians will only effect investment transactions on an authorised instruction from the Trustee. These measures protect the retirement savings of our members.
More than twenty five Australian and overseas investment managers manage the assets invested with legalsuper.
The following table lists legalsuper’s Investment managers at 1 July 2018:
|Australian Equity Managers|
|Cooper Investors – Cooper Investors is a large-cap Australian equities manager with a bias toward undervalued and quality companies.|
|Yarra Capital Management – The key driver to the Yarra Capital Management investment strategy is the extent of which a stock is under or over valued, using a range of valuation techniques, relative to its stock price.|
|Hyperion Asset Management – Hyperion is high conviction growth style manager that specialises in identifying and investing in quality Australian equities.|
|Allan Gray Australia – Allan Gray is a contrarian investment manager and has a broad Australian equities mandate|
|Solaris Investment Management – Solaris is a style neutral Australian equities manager, preferring to select stocks using fundamental analysis to exploit market inefficiencies in forecasts and valuations.|
|International Equity Managers|
|State Street Global Advisors - State Street adopts an indexed approach to investing in international stocks with returns generated closely tracking those of the global equity index.|
|Genesis Investment Management – Genesis manages our Global Emerging Market’s mandate out of London, which aims to select those companies best able to exploit emerging market growth opportunities and which are found to be trading at attractive valuations.|
GQG Partners – The GQG Partners Global Equity strategy invests in high-quality companies with attractively priced future growth prospects. Their focus is primarily on the liquid securities of large-cap issuers in both developed and emerging markets. GQG’s fundamental investment process evaluates each business based on financial strength, sustainability of earnings growth, and quality of management.The resulting portfolios seek to limit downside risk while providing attractive returns to long-term investors over a full market cycle.
|American Century Investment Management – American Century aims to identify companies where indicators point to an acceleration in the growth rate in earnings or revenue that the market is not fully pricing in. The process relies on fundamental analysis to identify the most attractive and sustainable opportunities.|
|Sanders Capital LLC – The investment strategy of Sanders employs a fundamental, bottom-up and research intensive process based on long-term value principles.|
|Schroder Investment Management - The strategy employed by Schroders aims to invest in stocks that exhibit value and quality characteristics. Portfolios typically exhibit a meaningful small/mid capitalisation bias relative to standard global emerging markets indices.|
|QIC - QIC manages a passive currency overly to hedge part of the foreign currency exposure back to Australian dollars.|
|Alternative Growth Managers|
|Partners Group – Partners Groups is a Swiss based alternatives managers. It invests in private equity secondary opportunities at discounted valuations.|
|Siguler Guff – Siguler Guff is a private equity fund of fund manager, investing in managers focused on private companies in the BRIC nations.|
|Lazard Asset Management Pacific - Lazzard has an absolute return style of investing and focus on 'core' infrastructure assets is an attractive method of gaining exposure to Listed Infrastructure.|
|Oak Hill Advisors - Oak Hill Advisors’ research teams are focused on industries rather than asset classes, an approach that Oak Hill Advisors believes emphasizes relative and absolute value opportunities across markets and within a company's capital structure.|
|Diversified Fixed Interest Managers|
Colchester Global Investors – Colchester is an independently owned global bond manager that specialises in high quality sovereign bonds. Colchester invests a portfolio of government bonds on behalf of legalsuper. Currency is predominantly hedged back to Australian dollars.
|Pimco Australia – PIMCO is a specialist global fixed income securities manager, with an investment strategy focused on economic and political influences and analysis business cycle trends when selecting securities.|
|Aberdeen Standard Investments - Aberdeen Standard Investments manages a portfolio of global investment grade corporate bonds.|
|Dexus – Dexus is a large property manager, investing in unlisted assets that include Commercial, Retail and Industrial property across Australian.|
|GPT – GPT invest in high quality, prime grade Australian office properties, predominantly in CBD locations.|
|Goodman – Goodman invests in Australian industrial property asset, including warehouse/distribution centers and office parks.|
|Lend Lease – Lend Lease manages a portfolio of Australian commercial property assets. This includes exposure to a portfolio of prime CBD office buildings.|
|Resolution Capital – Resolution Capital is a boutique manager that invests in global real estate investment trusts. It manages a high conviction, active portfolio with currency predominantly hedged back to the Australian dollar.|
|Colonial First State – Colonial is the largest cash manager in the country and aims to provide returns in excess of cash returns.|
AMP Capital Investors Limited – AMP manage our Socially Responsible Investments strategy. This strategy seeks opportunities to invest in companies that implement and display sustainable principles into their business strategies. The strategy employs a 'multi-manager' approach to investment management.
State Street Global Advisors Australia – State Street adopts an indexed approach to investing with returns generated closely tracking those of the index.
|Alternative Income Managers|
|QIC – The QIC strategy provides a dynamic approach to inflation protection, through the active management of interest rate and inflation exposure.|
|ICG - ICG is a specialist asset manager investing in private debt, credit and equity.|