Asset classes are generally classified into two groups, growth or defensive assets. Understand the difference and learn how we determine our investment strategy and approach.
Understanding asset classes
Asset classes are generally classified into two groups – growth or defensive assets – which have different risk and return characteristics.
They include Australian and overseas shares, property and some forms of alternative investments. They are primarily expected to provide capital growth over the long-term, although they may also provide income from dividends and rents. They tend to be higher-risk investments (i.e. more volatile than defensive investments), but they offer the potential to produce higher long-term returns.
They primarily include fixed interest investments, cash and term deposits, short term securities and some alternative investments. Some provide an income stream with the right to repayment of capital on maturity. They tend to be lower-risk investments that historically have produced lower long-term returns.
Investment management structure
legalsuper has engaged investment advisors to assist in determining our investment strategy and approach. The role of investment advisors is to provide the Investment Committee and the Board of legalsuper with advice and guidance on investment issues including:
- asset allocation
- portfolio construction
- investment policy implementation
- investment manager research
- alternative investments
- transition management
- investment risk management; and
- capital markets research.