Investment Performance

We know that you work hard for your super and on the same merit, we do too. At Goldman Sachs & JBWere Superannuation Fund ('Fund'), our aim is to deliver you strong returns so you can retire well. Our key investment objective is to maximise members’ retirement benefits by delivering the highest possible rate of return over the long term, whilst prudently managing risk and diversification. We are proud that we have consistently accomplished a high level of performance.

INVESTMENT OBJECTIVES AND INVESTMENT STRATEGY  

The Fund provides only one investment option for members. The following Fund objectives are taken into account when formulating the investment strategy:

• To provide benefits to assist members in achieving their desired standard of living upon retirement or becoming totally and permanently disabled;
• To provide a measure of security for members’ dependants in the event of a member’s death;
• To provide an above average rate of return while maintaining an acceptable degree of security for the Fund’s assets;
• To provide a range of benefits which are at least comparable with those provided by similar funds.

The investment return objective is to generate a total net return of at least 4% above inflation over a 10 year rolling period. (Note that the investment return objectives are not a predictor or promise of any particular investment return.)

The investment strategy is to prudently invest the assets of the Fund in pursuit of the maximum rate of return possible, subject to acceptable risk parameters and maintenance of an appropriate diversification of investments. Consideration has also been given to the size and nature of the liabilities of the Fund, particularly in relation to benefit payments.

The Fund maintains an asset profile that seeks to maximise long term returns by maintaining a high proportion of Australian equities. The trustee has determined the following ranges permitted for each asset class and a neutral position for each asset class:

You are not able to switch investment options as only one investment option is available.

INVESTMENT MANAGERS

We generally manage our investments internally and have no external investment managers appointed, other than underlying wholesale managed funds in certain asset classes. Investments of the Fund are made directly via direct holdings and wholesale managed funds.

The list of managers varies year to year. You can refer to the Service Provider Listing for the Fund’s current manager listing or the latest Fund Annual Report.

FUND CREDITING RATES

Investment income is credited to members’ accounts at the Fund’s crediting rate. The Fund’s crediting rate is based on the Fund’s actual earning rate for the year, which may be positive or negative, as set out below. Fees, expenses and taxes paid out of the Fund are deducted from the Fund’s earnings before the Fund’s crediting rate is applied to members’ accounts. The Features of the Goldman Sachs & JBWere Superannuation Fund booklet contains more information about fees and costs.

The Fund measures its performance against a benchmark* on a monthly, financial year, 5 year and 10 year basis. The following table compares the Fund’s actual earning rates with a one year median net return of funds in the ‘Mercer Employer Super Balanced Growth Survey’.

* Mercer Employer Super Balanced Growth Universe Survey – Median. All rates are after tax and after management fees.

Earnings are calculated monthly and are allotted to your account annually at the end of each Fund year, or upon your exit from the Fund. There are no commissions, or any other similar payments, that will or may impact on the Fund’s crediting rate.

The Fund’s investment return objective is to generate a total net return of at least 4% above inflation over a ten year rolling period. The table below compares the Fund’s average return (net of all fees) and average return target in line with the Fund’s current investment return objective over a 10 year rolling period. Note that the Fund's ‘annual net return’ referred to in the table allows for all fees and costs including administration fees deducted from member accounts (although note that this is only applicable to JBWere and Retained members).

INTERIM CREDITING RATES

For any period where a monthly earning rate is not known, we set a monthly interim crediting rate that is usually based on or around the cash rate (less an allowance for tax). In periods of unusual market volatility, the interim crediting rate may also take into account market movements over the period.

Members’ benefits will include earnings at the interim crediting rate that is set at the time the benefit is paid, for any period where the monthly earning rates are not known. Earnings may be positive or negative hence the amount of your benefit on any benefit quote that is sent to you (e.g. at the time you cease employment with an employer) may be more or less than the actual amount of your benefit paid out of the Fund on the date of withdrawal.

SOCIAL ENVIRONMENTAL AND OTHER CONSIDERATIONS

We focus on achieving strong risk-adjusted absolute returns. Principally, we seek to maximise members’ benefits over the long term, and integrate Environmental, Social and Governance (ESG) considerations where they are aligned to its investment objectives.

Equity investment decisions are based on superior stock selection by investing in high-quality companies with a long term view, where “quality” is assessed with reference to a number of components including ethical, competent and shareholder-oriented management. Therefore, the investment decision-making process incorporates ESG considerations to the extent that they add value to the quality of a business.

We don’t have a formal methodology to explicitly assess ESG credentials of particular jurisdictions, industries or businesses. However, we may take into account ESG considerations to the extent that they may affect the financial performance of a company or investment.

We expect the investment managers of the managed funds we invest in to identify the companies and countries that are appropriate for that fund, and they may or may not take into account ESG considerations in the selection, retention or realisation of particular assets.

VIEW YOUR ACCOUNT ONLINE

You can update your details and view your account online.

For more information about the Fund, call our helpline on 1800 025 026

You can reach us between 8.00am and 7.00pm on all national business days (Melbourne time).