Maritime Super's asset classes

Investments are generally divided into two groups: growth assets and defensive assets. Within each group, there are a number of different types of asset classes.

Growth assets

Growth assets include shares, property, private equity as well as some absolute return funds and alternative assets.

Growth assets primarily provide capital growth with a lower income stream. They are generally regarded as higher-risk investments as they have the possibility of higher returns over time but with more volatility.

Growth assets include:

Australian shares	Australian shares are shares in companies listed on the Australian Securities Exchange. Investing in shares means the shareholder owns a proportion of that company. Investment returns arise from movement in share price due to company or sector performance and from dividends (which are company profits distributed to shareholders). Shares can be held directly or through a trust. A trust generally pools money from a group of investors (for example, other super funds) and uses the money to purchase a range of shares.
Overseas shares	Overseas shares are shares in a company listed on the stock exchange of another country. In addition to the above, overseas shares can be affected by movements in the currency exchange rate. Changes in value in foreign currency may increase or decrease investment returns. Overseas shares are generally held through a trust.
Property – direct and listed	Investing in property usually involves investing in a property trust. Property trusts generally pool money from a group of investors and use the funds to buy a range of retail, commercial or industrial properties. They may be listed on the Australian Securities Exchange or unlisted.
Private equity	Private equity is investment in a company or enterprise that is not listed on a stock exchange. These companies often have an established track record in their field of business and require new funding to finance expansion.

Defensive assets

Defensive assets (also referred to as income assets) include fixed interest and cash deposits. Some absolute return funds and alternatives may also be included in this group.

Defensive assets often provide an income stream with the repayment of capital on maturity. They are generally regarded as lower-risk investments as they are more likely to provide lower and more stable returns over time.

Defensive assets include:

Fixed interest	Fixed interest investments (for example, government bonds) provide a rate of interest for a specific period of time, although the return will vary if the investment is sold prior to the maturity date. These securities are affected mainly by the level of interest rates as they rise or fall.
Cash enhanced	Cash enhanced assets include a wide range of money market and short-term fixed interest investments. Changes in the level of interest rates will affect returns.
Cash	Cash invests in a narrow range of short-term money market investments which aim to produce a return that closely matches the UBSA Bank Bill Index (less fees and taxes).

Both defensive and growth assets

There are also two other asset classes Maritime Super invest in which fall into both the growth and defensive asset groups.

Alternatives	Alternatives cover a wide range of investments which do not readily fall into any other asset class. They are generally unlisted and relatively illiquid, such as investments in infrastructure. Examples of infrastructure investments include transport, roads and airports. Alternatives may be either growth-oriented or have a defensive focus.
Absolute return funds	Absolute return funds aim to consistently produce a return greater than zero regardless of the prevailing market conditions. They encompass a wide range of strategies and are usually held through trusts, which themselves may invest in a range of trusts.

Labour standards, environment, social and ethical considerations

The Trustee of Maritime Super advises that labour standards and environmental, social and ethical considerations are not taken into account in the selection, retention or realisation of investments or in the appointment of investment managers by the Trustee. The investment managers engaged by the Trustee may or may not take these into account.

However, this does not preclude the Trustee from taking into account such considerations when exercising its voting rights on resolutions and corporate actions in relation to companies in the investment portfolio.