Our Initial Recommendations
We were specifically engaged by an ongoing client as investment advisors to an established self managed corporate superannuation fund. All members were invested into a single portfolio that was comprised of a large number of Australian shares, as well as Fixed Interest and Australian Equity Funds. We recommended and implemented the following initiatives:
- creation of three separate portfolios – low, medium and high growth – to give members a choice that best suited their individual risk profile, and
- rationalization of the number and selection of investments in order to optimize the performance of the three portfolios for their mandated level of risk.
Our Evolving Advisory Role
As a result of the growth in the size and membership of the Fund over the ensuing three years, we were requested by senior management to research and implement the Fund’s transition from a self-managed to an institutionally managed structure. Based upon our own research, we recommended and implemented an institutional superannuation structure that best suited the client within the key areas of investment choice, insurance coverage, administrative service and overall cost.
Upon completion of the transition to an institutional structure, we implemented the following initiatives:
- create a secure and seperately-dedicated section of our website that provides all fund members with our quarterly recommendations for determining their own risk profile, asset allocation and investment fund selection. A short, medium and long term performance history of our recommendations is also provided quarterly, as well as a performance comparison of our recommendations against the in-house institutional fund offerings. Our long-term recommended asset allocations and investment funds have significantly outperformed the in-house Institutional Funds.
- provide annual educational presentations to all of the client’s offices throughout Australia.
- regularly review – and where necessary report to the Policy Committee – the behaviour of the Superannuation Fund’s Trustees and Management to ensure that members’ interests are not compromised by the institution’s self-interest.