Funds SA aims to provide a value adding and cost effective investment service that enables South Australia’s public sector superannuation schemes and public authorities to achieve their investment objectives.
We do this by working closely with the world’s best investment managers, asset consultants, investment custodians and professional advisers who are leaders in their field.
Services Offered
Performance Plan
- For each client, in accordance with the Act, we prepare an annual Performance Plan. The Performance Plan is the primary document for communicating with, and seeking feedback from each Client regarding planned initiatives and proposed strategies for managing investments over the coming year.
- Each Performance Plan includes details on:
- the target rate of return on the investment of funds;
- strategies for the achievement of that target;
- the anticipated operating costs to be incurred by the Corporation during the financial year;
- factors likely to affect or influence the investment and management of the funds during the year; and
- such other relevant matters.
- Performance Plans are prepared annually and reviewed by the Funds SA Board, prior to distribution to clients, to ensure the continued validity of investment strategy and to consider any enhancements. Compliance with the Plan is monitored half yearly by the Board and monthly by the Internal Auditor.
- Preparation of the Performance Plan involves extensive interaction with the client and appointed external advisers.
Investment products
- Funds SA offers a range of single and multi-sector investment products. Each product adopts an investment strategy tailored to maximise the likelihood of achieving its investment objective. The objectives outline a time estimate for the investment to achieve a return taking into account the individual risk involved.
- Our product range also caters for individual tax environments. Investment strategies recognise the differing tax outcomes that may result from different asset classes.
Portfolio management
- Funds SA seeks the best specialist investment managers to implement investment strategies.
- Fund managers are appointed to manage specific assets of a Funds SA asset sector. Managers are continually monitored to make sure the investment approach and performance outcomes match the agreed investment objectives and guidelines.
- To assist in the appointment and review of each investment manager and sector strategy, Funds SA seeks the best available independent advice. In most instances, this leads to information and advice being given to the Funds SA Board on management recommendations. The consulting services of Russell Investment Group, Quentin Ayres and other external consultants are used for this purpose.
Client reporting
- We provide reports at intervals requested by our clients: monthly, quarterly, half yearly or annually, depending upon their needs and as prescribed under the Act. These reports include extensive information on actual portfolio performance, linking that performance to the objectives and benchmarks outlined at the outset. Asset allocations and market commentary is also included.
Investment administration
- Service levels are agreed in consultation with our clients and documented within a Service Level Agreement.
- Regular reports including accounting, taxation and compliance monitoring information are provided to clients as agreed.
- Liquidity issues are considered as part of each client’s investment policy. Cash flow is managed to meet individual requirements.
- Funds SA utilises the services of a custodian, JPMorgan Chase Bank N.A., to safeguard and maintain a large proportion of investments held. The custodian is responsible, amongst other things, for settling transactions on the instruction of Funds SA’s investment managers (e.g. the sale or purchase of shares), ensuring that all dividends and interest payments are received, ensuring that fund managers respond to any corporate actions (e.g. rights issues or takeover bids), providing accurate monthly financial reports on the value and composition of Funds SA’s investments under custody, compliance, performance management and unit pricing of client portfolios.