How we manage investment
There’s a lot that goes on behind the scenes. Here’s some information you might be interested in knowing about how we manage your money.
We employ professional investment managers and an asset consultant to handle our assets. We assess them against strict performance criteria and make sure they complement each other, so our assets stay diversified.
We also have strict guidelines and strategies for all of our investments.
We invest your account balance in the investment option or options you choose. If you don’t make a choice, you’ll be invested in our default options. For Tasplan Super members, this is our MySuper Tasplan OnTrack® option and for Tasplan Pension members, this is our Cash option.
For details about how we invest assets in each of these options:
download a copy of our Investment guide
email us at email@example.com or call us on 1800 005 166.
How do unit prices work?
You receive units in the investment option or options that you've chosen. So, if you're in our Growth option, you'll get Growth units.
The value of your units goes up and down according to the markets. So, your account balance may increase or decrease in line with the unit prices. You keep your units until you either switch investment options or withdraw super.
With us so far? If not, get in touch and we'll walk you through it.
Switches and withdrawals
When you switch investment options, you trade the units you have for different units. For instance, if you switch from our Growth option to our Tasplan OnTrack option, you sell your Growth units to buy Tasplan OnTrack units. The value of the units in each investment option varies, so you may get more or fewer units when you switch, depending on the current unit prices.
When you make a withdrawal, you sell your units for money. The amount of money your units are worth depends on the current unit prices. So, if you withdraw $10 and your units are worth $1 each, you'll sell 10 units for your money. If your units are worth $2, you'll sell five units for your money.
How many units do you get?
The number of units you get depends on the unit price when we receive your contribution.
For example, if you invest $100 each month and in the first month the unit price of each unit is $1, then you get 100 units.
If in the next month the unit price increases to $2, you only get 50 units for your $100 contribution.
If the price decreases to 90 cents, you get 111.1111 units.
Our reserving policy
We don’t keep an investment reserve and unit prices reflect the actual earnings for the period.
We do have an administration reserve, so we can maintain equity between members and make sure we can always meet expenses.
While we employ professional investment managers and an asset consultant to provide expert advice, the trustee has the ultimate responsibility for all our activities, including investments.
Government bodies such as the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) closely monitor super fund trustees to make sure they act responsibly and in the best interests of members.
We have a system of procedures, checks and balances to make sure trustees’ decisions align with their investment strategies and objectives. Trustee directors undertake regular training around investments and other super issues.
You can download our Investment beliefs.
We measure all investment managers’ performance at least monthly against industry benchmarks and our performance standards. We can dismiss investment managers if they perform poorly or don’t comply with our requirements.
We also regularly review the asset allocation of the investment options and make changes when necessary, either as a result of market performance or member demand.
UN principles for responsible investing (UNPRI)
In January 2009, Tasplan Super was the first Tasmanian super fund to become a signatory to the UN principles for responsible investing (UNPRI).
What does this mean?
UNPRI plans to develop and implement a set of global principles that help environmental, social and governance (ESG) issues dovetail into mainstream investment practices.
The principles were an initiative of the UN Secretary-General and developed by large institutional investors. The six principles can be applied across all sectors of the fund’s portfolio and provide guidance on key challenges.
The principles are voluntary, aspirational and designed to enhance long-term benefits throughout the investment sector. They are not to be used as a screening tool but, rather, for ESG engagement.
Under the six UNPRI principles, we'll endeavour to:
- incorporate ESG issues into investment analysis and decision-making processes
- be active owners and incorporate ESG issues into our ownership policies and practices
- seek appropriate disclosure on ESG issues by the entities in which we invest
- promote acceptance and implementation of the Principles within the investment industry
- work together to enhance our effectiveness in implementing the principles
- each report on our activities and progress towards implementing the principles.
Tasplan Super and UNPRI
The UNPRI is based on the idea that ESG issues can affect investment performance and that considering these issues is part of managing an investment portfolio. UNPRI is a tool that will lead to a greater understanding of ESG issues and a way of managing ESG risk. Its outcome should enhance and protect member benefits.
As a member of the Australian Council of Superannuation Investors, we already comply with a number of the UN principles, plus we have developed our own ESG policies that we’ll develop more, over time.
For more information, visit the UNPRI website at unpri.org.
- We consider the impact of climate change risks and opportunities as part of our investment process.
- Where we outsource investments to external managers, we expect them to consider the impact of climate change. We regularly discuss this with them when monitoring their performance.
- Climate change risk is fully assessed, along with other risks that may impact each investment, by our external managers.
- We consider climate change opportunities and invest where forecast returns are consistent with the fund's objectives. Some examples of this include:
- We currently directly invest in wind energy in Tasmania and indirectly invest into wind farm connections in other states through TransGrid and Electranet.
- Our unlisted property portfolio has a strong focus on energy efficient investments, including 144 Macquarie Street, Hobart which was refurbished leading to a 60% reduction in energy usage and 199 Collins Street, Hobart which was developed to a NABERS rating of 5½ stars.
- The Lend Lease Commercial Fund which we invest in is rated by GRESB as the number one fund globally out of more than 700 funds.
- We recently reviewed a significant wind energy investment opportunity, but declined to invest as the forecast return was well below our targeted investment return.
We’ll continue to consider similar opportunities where they’re consistent with our fund's objectives.
Although our investment policy has always considered climate change, we’re currently developing a formal climate change policy to be approved by the Board.
® Registered to Tasplan Pty Ltd ABN 13 009 563 062.