Investment Strategies And Objectives

Investment Strategy

The RBF Board's overall investment strategy, subject to acceptable levels of risk, is to:

• attain investment returns significantly higher than the Consumer Price Index (ie. real returns above inflation);
• outperform the average return of similarly structured funds;
• produce, over time, a surplus over and above the RBF's current and future benefit liabilities for the Contributory Scheme and thus reduce the State's future superannuation liabilities; and
• match investment assets and investment income to the current and future pension liability.

As some of these strategies are not necessarily complementary to each other, the RBF Board has segregated the investment portfolio into a number of sub funds:

• Contributory Scheme Portfolio - used to fund the RBF's share of future lump sum benefits payable from the Contributory Scheme as well as RBF's share of current and future pension payments;
• RBF-TAS SG Account - used to fund employer SG contributions to the Tasmanian Accumulation Scheme;
• RBF Allocated Pension Account and RBF Term Allocated Pension Account - used to fund tax advantaged pensions; and
• RBF Investment Account - used to fund the lump sum benefits payable as a result of members making additional voluntary contributions or rolling-over money from other superannuation funds.
• State Fire Commission Superannuation Scheme Fund - used to fund the lump sum benefits payable from the State Fire Commission Superannuation Scheme.
• Tasmanian Ambulance Service Superannuation Scheme Fund - used to fund the lump sum benefits payable from the Tasmanian Ambulance Service Superannuation Scheme.

Members with the following accounts have access to Member Investment Choice:

• RBF-TAS SG Account
• RBF Investment Account
• RBF Allocated Pension
• RBF Term Allocated Pension Account

The Member Investment Choice options available to members can be divided into three groups:

Diversified options:

• RBF Actively Managed (default option)
• RBF Long Term Growth
• RBF Diversified Growth
• RBF Conservative Growth
• RBF Socially Responsible Investments

Asset class options:


• RBF Cash
  
• RBF Australian Shares
  
• RBF International Shares
  
• RBF Property and Alternative Investments
  
• RBF Fixed Interest

Manager specific options:


• State Street Balanced Indexed
  
• State Street Australian Share Index
  
• Maple-Brown Abbott Balanced
  
• Maple-Brown Abbott Australian Shares

For more details of RBF's Investment Policy and Strategy click here.

Investment Objectives

The RBF Board regularly reviews the separate investment objectives established for each sub-fund.

Contributory Scheme

• Investment returns (after tax and fees) to exceed the rate of inflation by 4.5% per annum over rolling 5 year periods.
• Investment returns to be above the median of similarly structured funds over rolling 3 year periods.

State Fire Commission Superannuation Scheme Fund

• Investment returns (after tax and fees) to exceed the rate of inflation by 4.5% per annum over rolling 5 year periods.
• Investment returns to be above the median of similarly structured funds over rolling 3 year periods.

Tasmanian Ambulance Service Superannuation Scheme Fund

• Investment returns (after tax and fees) to exceed the rate of inflation by 4.5% per annum over rolling 5 year periods.
• Investment returns to be above the median of similarly structured funds over rolling 3 year periods.

RBF-TAS SG Account, RBF Investment Account, RBF Allocated Pension Account and RBF Term Allocated Pension Account

• To outperform the neutral benchmark asset allocations over rolling two years, and limit the prospect of bottom quartile relative performance in any one year, and
• manage fees to a low level.

Returns and Asset Allocations

• Asset Allocation