Essential to our investment process are our core investment beliefs.
The investment beliefs shape the way that our investment team behaves, how it interacts with external providers and it how it reaches decisions.
We believe that:
- Strong governance is essential to our success.
- Our ‘One team, One purpose’ culture leads to better decisions and investment outcomes.
- A total portfolio approach will improve our long-term performance.
- Inefficiencies in markets create opportunities for us to add value through active management.
- Risk is multi-faceted and robust risk management enhances our ability to achieve our mandates.
- Our primary focus should be on the value we add, net of all costs, but we seek to utilise our scale and market standing to reduce costs.
- We have a number of comparative advantages that, if properly utilised, will help us achieve our mandates.
Our principal comparative advantages are:
- We are a long-term investor. Our long investment horizon allows us to look through short-term volatility and be patient, taking positions we expect will pay off over the long term. We can also buy and hold private or otherwise illiquid investments offering additional returns.
- Our reputation. Our reputation is one of our most valuable assets, resting on our sovereign status and enhanced through time by our conduct and results. It facilitates access to other sovereign institutions and the most highly regarded peers and investment organisations, as well as attracting highly qualified and experienced staff.
- Our access to high-calibre external partners. Our scale, sovereign status and reputation help us access and leverage the skill and experience of best-in-class external partners and fund managers.
- We focus on total portfolio outcomes. We embrace a total portfolio approach that allows us to remain focused on what matters at the whole-of-portfolio level, while collaborating to effectively integrate top-down and bottom-up investment ideas.
- We have a single client and a single purpose. Our single purpose is to invest for the benefit of future generations of Australians who are represented by our single client, the Australian Government. This clarity of mission enhances our focus on our investment objectives and unites us in our quest to achieve them.