In this section you’ll understand the measures we put in place to achieve investment performance and to help you have the retirement you deserve.
We understand that there’s nothing more important to our members than that they and their families are provided for when they retire.
We know that our members take their finances seriously, and that’s why we take investment performance seriously too. To do this, we keep four things in mind: Investment Returns and Measures of Success, Best Practice Governance, Managing Cost, and Integrated Management of ESG and Impact.
Investment Returns and Measures of Success
- Net return rate – we always track our performance versus the objectives we set for ourselves. For example, as at 30 June 2017 10 year annualised net return for the PSSap MySuper Balanced investment option was 4.77%, just below the average return target of 6.43%*.
- Superannuation investment income – we put our focus on the income that your superannuation investment may be able to generate for you when you retire. We measure ourselves on your funding ratio –what level of income your superannuation savings can generate for you in retirement compared with a common industry-wide benchmark.
- Investment returns – we attempt to generate returns by investing your benefit. However, any investment involves risk – whether it’s inflation, equity risk or emerging risk among others. In light of those risks, we do our best to maximise investment returns by diversifying your portfolio and limiting losses during times when markets fall, while capturing most of the gains available when markets rise. Read more in the how we invest section.
- Upside to down-side capture versus our peers
Best Practice Governance
We’ve designed and adhere to an investment governance framework that enables effective decision-making and accountability by the right people for each decision, and facilitates timely identification and management of risks.
The framework builds from a clear separation of duties between the Board and the Executive team. A well-defined control process enables investment delegations to efficiently operationalise the Board’s strategy while giving the Board complete oversight against these delegations at all times.
Read more in the how we invest section.
We pro-actively manage and structure all of our investment arrangements with a view to:
- Eliminating unnecessary costs
- Aligning compensation paid to investment managers and asset operators with the desired return and risk outcomes to you
- Generating returns after costs over the long horizon of your working and retirement lifecycle
Integrated Management of ESG and Impact
Local knowledge and expertise in the regions in which our investments operate is critical to choosing and managing those investments. We match the right people with specialist skills, to manage risk and help you pursue the investment returns and retirement outcomes you deserve.
Read more in the Stewardship factsheet.