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Investment

How are my funds invested?

The Superannuation Investment Board (the Board) is responsible for setting investment strategies and objectives of the NTGPASS Fund. In developing the investment options, the Trustees of the Board took account of the need for members to have diversification across the various investment sectors as well as the NTGPASS benefit structure, membership profile, implementation costs and the resources available to manage the Fund's investment portfolio.

Your funds are invested according to the investment option you selected.

NTGPASS Investment Options

What is the role of the Superannuation Investment Board?

The Superannuation Investment Board is established by section 11 of the Superannuation Act. The functions of the Board are to act as Trustees of the Fund and to direct the Commissioner of Superannuation in managing the investments and the Fund on its behalf. Additionally, the Board may direct the Commissioner to:

• engage investment managers, actuaries, financial and legal advisers and other experts, in relation to the management of the investments of the Fund; and

• invest the monies of the Fund in investments that the Board considers appropriate.

Who are the Trustees of the Board?

The Board comprises three Trustees and three alternate Trustees appointed by the Treasurer, each for a five-year term. The Chair and Acting Chair, and the employee Trustee and alternate, are appointed after consultation between the Treasurer and Unions NT. The third Trustee and alternate Trustee are appointed by the Treasurer.

As at 1 April 2009, the Trustees of the Superannuation Investment Board are as follows:

     Member   Alternate Member
  Chair    Kathleen Robinson   Marianne McAdie
  Member    Michael Martin   Michelle Kempster
  Member    Alex Pollon   Vicky Coleman

Who manages my superannuation investments?

The Fund’s investment portfolio is managed by MLC Implemented Consulting (MLC). MLC were appointed as managers by the Board in August 2005 following a select tender process.

In its role as consultant to the Board, MLC advises the Board on investment objectives and strategies, and selects and monitors investment managers who manage the funds. MLC appoints investment managers with complementary styles across different asset classes such as international and Australian shares, property and fixed interest securities. This style of management creates a well diversified portfolio that helps minimise risk to produce positive long-term returns.

MLC also re-balances the portfolio to bring the actual asset mix in line with the target allocation. MLC is required to keep the actual asset allocation of each investment option in the Fund within plus or minus 5 per cent of the Board’s target allocation. The asset allocation ranges are continually monitored by the Board to ensure they are within the Board’s targets.

As at 27 February 2009, MLC’s investment structure utilised 28 investment managers (excluding the multi-manager private market investments). MLC’s managers hold around 1500 bonds and are invested in shares in around 1500 different companies across 60 industries and in over 40 countries.

Investment Managers

MLC Performance Review

In late 2008, the Board engaged PricewaterhouseCoopers to conduct a performance review of MLC.

The PricewaterhouseCoopers report reviewed the performance of MLC as investment manager to NTGPASS. Included in the report was a review of:

• MLC's performance against the investment objectives of NTGPASS;

• MLC's performance in each sector relative to a range of passive benchmarks; and

• the performance of the MLC Growth option.


The results of the review indicated that:

              "On a historical basis, MLC has been able to achieve the return objective
                and risk objective (as outlined in the NTGPASS MLC information booklet)
                for each of the options currently offered to NTGPASS members.

               The performance of the MLC Growth option has generally been in line with
               the performance of the average implemented consultant over longer time
               periods."


The Board will continue to commission performance review of MLC or the relevant incumbent implemented consultant every three years. The next review will be conducted in late 2011.

 

NTGPASS Newsletters

Investment Update April 2009

Investment Update October 2008

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