Outsourcing services can deliver superior investment results, State Super believes.
The trustee's chief executive, John Livanas, said the firm had been working collaboratively with key services providers and that their outsourcing model allowed State Super to deliver superior outcomes.
"Our returns were driven by a combination of State Super's investments in alternatives like Melbourne Airport, the Port of Geelong and the financial planning business StatePlus, as well as our property portfolio and equities," he said.
"The returns also clearly signalled the success of our downside risk protection practices and active management approach."
State Super said their professionals working in investments, actuarial, product and policy management, member engagement, education and communication, legal, finance and operations, worked closely with key services providers to achieve superior results in member services, investment performance and business management.
State Super said in 2015-16 their growth strategy delivered a return of 5.01 per cent, their balanced strategy 5.3 per cent, their conservative strategy 4.6 per cent, the trustee selection 3.64 per cent, and cash delivered 2.04 per cent.
"Four out of five strategies delivered results in the top quartile," Livanas said.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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