Responsibilities of the Board
The Board of Legal Super Pty Ltd is responsible for the investment arrangements of legalsuper and for formulating an investment strategy for legalsuper in addition to individual investment strategies (investment options) made available to members.
The Board has established an Investment Committee to assist it with the implementation of the investment strategy. The Investment Committee makes recommendations to the Board on matters of strategy, appoints and reviews underlying investment managers and formulates policies that guide investment arrangements and processes.
Investment Committee
The Investment Committee comprises of three Directors of Legal Super Pty Ltd and investment experts who are appointed to provide additional assistance to the Committee.
It is responsible for overseeing implementation of the investment strategy, advising the Board on the design of investment options including the risk and return objectives and strategic asset allocation; investment policy; and the appointment or termination of the Custodian or Asset Consultant.
- Chair: Richard Fleming
- Members: Kamal Farouque and James Peters
- External Investment expert: Joe Fernandes
To further build our investment capability, the Board has decided to include an External Investment Expert as a member of the Investment Committee. The Investment Expert provides expert independent investment advice to the Investment Committee and Board.
Joe Fernandes
Appointed: 27/03/2020
Qualifications
- Graduate Diploma in Applied Finance and Investment – Securities Institute of Australia (2001)
- Doctor of Philosophy (Science) – Monash University (1996)
- Honours Degree of Bachelor of Science (Mathematics) – Monash University (1992)
Experience
- Australian Unity Wealth – Chief Investment Officer (2020 – present)
- Omnia Capital Partners – Independent Member of Investment Committee (2020 – present)
- First State Investments – Managing Director, Asia (2016 – 2018)
- Colonial First State Global Asset Management – Head of Global Investment Solutions Group (2006 – 2015)
- Colonial First State Asset Management Australia – Chief Operating Officer (2005 - 2006)
- Colonial First State Investments – Head of Multi-manager and Quant (2002 – 2005)
- Colonial First State Investments – Investment Director, Hedge Funds (2001 – 2002)
- William M Mercer – Investment Consulting (1996 – 2001)
Investment goal and beliefs
In investing the savings of its members, legalsuper is guided by the following investment goal and core investment beliefs.
Investment goal
The investment goal of legalsuper is to produce investment products that consistently deliver competitive long-term, risk-adjusted returns for members.
Investment beliefs
- We believe that optimal decision-making leads to strong member outcomes and is facilitated by appropriate governance structures.
- We believe that rigorous research of both the expected benefits and potential risks of investment opportunities leads to strong member outcomes.
- We believe our key comparative advantages are a long-term mindset and our size, and that we can improve member outcomes by exploiting these.
- We believe that real long-term returns are most important. However, we recognise members have choices and returns relative to peers, are also important.
- We recognise the need to take risk in order for the Fund to achieve its return objectives. Risk is only taken when we think we will be appropriately rewarded for it, and is managed through asset allocation, manager selection, overlays and portfolio construction.
- We aim to capture most of the upside in strong markets, and to minimise losses.
- We believe that asset allocation dictates most of the return and volatility of returns, and that the expected long-term returns and risks are best established through strategic asset allocation.
- We believe that markets move through cycles and by taking a dynamic approach to managing asset allocation, where we have high conviction, we aim to improve the probability of achieving the Fund’s return and risk objectives.
- We outsource our asset management to appropriately qualified investment managers. We employ passive managers, and also active managers where we have a high level of conviction in their ability to add value net of fees and costs.
- We believe that environmental (including climate change), social and governance opportunities and risks exist and should be taken into consideration to the extent we can practically do so and within the context of optimising net risk-adjusted returns.