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Investment Strategy

ADF Super investment strategy

ADF Super is here to help you save an adequate super balance for your future income needs.

We do this by setting a target return objective for each investment option over its relevant timeframe.

We offer a simple range of options

We offer four options so you can make a prudent choice to achieve your saving target.

Each option has a target return objective

That’s the level of investment performance an option aims to achieve over a set timeframe.

Each option has a prescribed level of investment risk

Investment risk is that option’s likelihood of achieving its return target over a given timeframe.

Our focus is on downside protection

We aim to preserve more of your savings in weak markets and capture most of the upside in strong markets. The cumulative return should achieve your option’s return target over its set timeframe, and the fluctuation in your returns should be reduced along the way.

Our operating principles

Avoid loss and waste.
Take only those risks that are expected to be adequately compensated.
Value flexibility.

Our investment beliefs

Our investment motive should drive everything we do.
Asset prices will revert to fundamentals.
Persistent exploitable investment market inefficiencies are rare.
illiquid assets come with extra risk.
Asset risk is reduced by improved environmental, social and governance performance.
Our focus should be long term, while balancing the needs of members who may retire soon.
Complexity is to be avoided.

Our portfolio design

When designing and constructing our portfolios we:

diversify risk, not assets
understand the rationale for using any single investment (e.g. to achieve capital growth or protect against inflation) and its risk factor characteristics
value simplicity
make every decision in the context of its value to the entire portfolio
make real-time decisions
know efficient implementation is a crucial competitive advantage.