Lifetime Asset Management

Lifetime Asset Management Ltd (Lifetime) took over the management of the Superannuation Master Trust on 1 March 2023.  

 

 

Investment Philosophy

Our Investment Philosophy is based on the following set of fundamental beliefs:

  • Long-term investments out-perform short-term investments.
  • The benchmark asset allocation of a fund is the primary driver of investment risk and return.
  • We expect a well-diversified portfolio to provide investors with a less volatile investment experience, while single sector funds invested mainly in growth orientated assets (like shares and property) may provide the opportunity for improved investment returns albeit under more volatile conditions.
  • We value quality, simplicity and transparency when selecting investments.
  • By offering multi-asset-class funds, we maximise diversification for investors.
  • The importance of strong governance and efficient portfolio management and implementation.
  • The relationship between risk and return means that growth assets are likely to deliver higher returns over time but may be more volatile (prices falling as well as rising) while income assets are usually less volatile but are also likely to deliver a lower return over the long term.
  • The integration of environmental, social and governance (ESG) factors into our investment management processes because we believe that these factors are some of the drivers of long-term value for the Scheme’s investors and their investments.

 

 

Investment Strategy

We seek to provide investors with a range of investment choices and investment management styles to enable them to tailor a portfolio that suits their unique goals and needs. We do this by investing the Funds within the Scheme into a range of underlying funds.

The Scheme offers a range of fund types including:

  • Diversified Funds that provide exposure to a range of asset classes with varying ranges of benchmark asset allocations and ranges to provide differing balances of risk and return; and
  • Single Sector Funds that each primarily provide exposure to a single asset class.

We determine the investment strategy, objectives and policy of each Fund and set the benchmark asset allocations and ranges (where applicable) that reflects that strategy, objectives and policy. We then select one or more underlying funds and underlying fund managers that have adopted strategies, objectives and policies that provide the exposure required for the Funds.

Underlying fund managers used by the Scheme may invest in a broad range of shares (also known as equities), fixed interest investments, listed and unlisted property trusts/funds, cash instruments and in managed funds. Securities held by underlying fund managers or appointed investment managers may be listed or unlisted. Underlying fund managers may borrow, short-sell securities and use derivatives.

 

 

Responsible Investment Policy

We believe that over the long term, companies with strong environmental, social and governance (ESG) practices should deliver stronger risk-adjusted returns than those without. In selecting an underlying fund manager, one of the selection criteria is the manager’s ESG practices.

The Manager and the underlying fund managers generally seek out companies with good ESG practices, to provide Scheme investors with funds that meet investors’ needs and expectations.

The Scheme currently offers a range of investment options to the Scheme’s members, using underlying fund managers with differing approaches to responsible investing.