Single Sector Funds

Asset Class

Investments

Cash Exposure to Australian short term interest rate sensitive debt instruments, such as bank bills, which provide a high level of liquidity with minimal risk of capital loss.

Fixed Interest

 

Short Term Fixed Interest

Exposure to Australian nominal debt instruments providing principal repayment at maturity and coupon payments at regular intervals until maturity.

Long Term Fixed Interest

Exposure to Australian and global debt instruments providing principal repayment at maturity and coupon payments at regular intervals until maturity. International assets are hedged to the Australian dollar.

Fixed Interest (MAC)

Funds SA manages a dedicated Fixed Interest portfolio for the Motor Accident Commission (MAC) whereby MAC is the only investor in the asset class.

Inflation Linked Securities Exposure to debt securities providing a fixed rate of return in excess of an index related to the general level of prices in the economy, such as the Consumer Price Index or Average Weekly Earnings. International assets are hedged to the Australian dollar.
Diversified Strategies Income

Investment opportunities with expected returns between that of bonds and equities, not readily classifiable within the other asset classes. Includes investments in investment grade credit, emerging market debt, high yield securities and absolute return strategies. International assets are hedged to the Australian dollar.

Funds SA also manages a dedicated Diversified Strategies Income portfolio for the Motor Accident Commission (MAC) whereby MAC is the only investor in the asset class.

Property Exposure to Australian property markets.
Australian Equities Equity exposure to companies listed or on the Australian Securities Exchange.
InternationalEquities Equity exposure to companies listed on international stock exchanges. Includes exposure to emerging markets and small companies. 50% of the developed markets component is hedged to the Australian dollar.
Diversified Strategies Growth Investment opportunities with expected returns in excess of the long term expectation for listed equities, not classifiable within the other asset classes. Includes investments in private equity, opportunistic property, infrastructure and other opportunities. International assets are hedged to the Australian dollar.

In order to implement the investment strategies for tax-exempt and taxable investors, separate pools of assets have been set up for the following asset classes: Property, Australian Equities, International Equities, Diversified Strategies Growth and Inflation Linked Securities. Tax-exempt funds are invested in the 'A' portfolios whilst taxable funds are invested in the 'B' portfolios. The other asset classes are common to both tax-exempt and taxable investors. The A and B portfolios have been structured to provide similar investment outcomes with respect to expected risk and return.