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 appointed fund managers, asset consultants and our custodian.
Funds SA's capabilities and the key services performed for those that invest with us are listed below.
- Funds SA offers a range of single and multi-sector investment funds from cash to more growth oriented strategies.
- Our fund range also caters for different tax environments, with funds available for tax-exempt investors, tax-paying investors and those investors who are able to take advantage of franking credit refunds. Investment strategies recognise the differing tax outcomes that may result from different asset classes.
- Funds SA utilises the services of JANA to assist with the development and review of the multi-sector fund asset allocations.
- Fund managers are appointed to manage specific assets within Funds SA's asset classes. 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 fund manager and sector strategy, Funds SA seeks 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 JANA, Quentin Ayers and other external consultants are used for this purpose.
- Funds SA's Investment Review Committee meets at least monthly to consider asset allocation policy matters, to review asset market valuations and risks and the possible impact on Funds SA’s portfolios, and to provide peer review of annual multi and single sector reviews.
- Funds SA's Risk Management Committee meets monthly to evaluate and monitor issues such as liquidity risk, foreign exchange risk, counterparty/credit risk, investment portfolio exposures and unit pricing.
- Liquidity issues are considered as part of each investor’s investment policy.
- For each investor, in accordance with the Superannuation Funds Management Corporation of South Australia Act 1995 (the Act), we prepare an annual Performance Plan. The Performance Plan is the primary document for communicating with, and seeking feedback from each investor 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 endorsed by the Funds SA Board, prior to distribution to investors, to ensure the continued validity of investment strategy and to consider any enhancements.
- Preparation of the Performance Plan involves interaction with the investor and appointed external advisers.
- We provide reports at intervals requested by our investors: monthly, quarterly, half yearly or annually, depending upon their needs and as prescribed under the Act. These reports include information on portfolio performance, asset allocations and market commentary.
- Operational aspects of the investor relationships are documented within a Service Level Agreement.
- Regular reports including accounting, taxation and compliance monitoring information are provided to investors as agreed.
- Cash flow is managed to meet individual requirements, with Funds SA able to accommodate daily cashflows.
- Funds SA utilises the services of a custodian, JPMorgan Chase Bank N.A., to safeguard and administer a large proportion of investments held. The custodian is responsible for, amongst other things, the safe custody of Funds SA's investments, settling transactions on the instruction of Funds SA’s fund managers, 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 financial and performance reports on Funds SA’s investments and unit pricing of investment funds.