How we invest your Super
MTAA Super invests to help balance risk and return. We achieve this by spreading investments across shares, property, infrastructure, fixed interest, cash and other assets.
The Two-Portfolio Approach
MTAA Super uses an investment approach that is designed to deliver sound results for its members in both good and bad economic periods. The Fund invests in a strategy called the Two Portfolio Strategy. This means your investments are divided into two areas – the Market-Linked Portfolio and the Target Return Portfolio.
The Two Portfolio Strategy seeks to deliver returns with an acceptable level of risk. It is a strategy that has been paying off for members, and is one of the reasons MTAA Super was judged by SuperRatings to be the Fund of the Year for 2005-06.
The Market-Linked Portfolio
The Market-Linked Portfolio is composed of shares, fixed interest and cash. Superannuation is invested in Australian and international markets, so returns are subject to the underlying ups and downs of the market. The portfolio aims to modestly out-perform the key market index returns, with low levels of risk and cost.
The Target Return Portfolio
The Target Return Portfolio invests in unlisted assets such as airports, tollways, ports, power stations, timber, power generators and private equity. It also invests in property such as landmark government buildings. Many of these investments have a strong cash flow and a steady return. These assets are not directly linked to share markets and therefore provide a buffer against the volatility of shares.
This strategy has provided positive, stable returns for the Fund since its inception in the later 1990’s. The strategy performed to plan during the 2000 to 2003 share market downturn. While many superannuation funds recorded negative returns over this period, MTAA Super was able to better protect members’ funds from loss. In more recent times, when the listed markets were growing strongly, the returns have been market leading.
For any queries, please call us on 1300 362 415