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Centuria LifeGoals provide access to a wide range of high quality active investment managers selected by Centuria Life and low-cost specialised index investments.
The active investment managers have been carefully selected to offer a high level of expertise in their chosen fields. They offer different investment styles to satisfy a wide variety of investor goals.
Watch Portfolio Manager, Jack Coleman, explaining our process for fund manager selection and monitoring
Active investment managers conduct research and choose to be underweight or overweight different stocks and sectors. Their objective is to outperform a relevant index. These investment managers will typically charge a high fee and may have a performance fee. We provide access to a range of active investment managers that vary in style and objectives, who have been selected based on a range of measures.
As part of the selection process, our team meets with and interviews prospective investment managers. Our research is focused on providing access through the Investment Options to high-quality investment managers in each asset class.
We will conduct reviews of the investment menu to monitor whether each Investment Option and investment manager is operating in a manner consistent with the description in this PDS. At times, investment managers with a certain style or bias may underperform and this will be monitored by Centuria Life and investment managers may be replaced from time to time.
A low-cost index option is also available to investors for each major asset class. Index managers aim to replicate the performance of the relevant index they track and will typically have lower management fees as they do not conduct the in-depth research required for active investment management. For example, an Australian large-cap share index manager seeks to mirror the performance of the ASX All Ordinaries Index by replicating its holdings.
Centuria LifeGoals offer a range of index funds and active managers and therefore our menu options are able to help fulfil the investment strategies of a diverse group of investors. Investors can select the investment managers and asset classes that best meet their financial goals.
We believe that investment choice is important for investors. Selecting the right investment manager is an important investment decision. Centuria Life undertakes research and due diligence enquiries to select and review the investment managers and funds to place on the investment menu.
The diagram opposite summarises the key considerations Centuria Life uses to select investment managers.
Centuria Life believes that a robust investment process is important to making good long-term decisions. In reviewing investment managers, Centuria Life considers the following:
Centuria Life also takes advice from external experts and investment consultants and its actuary (appointed pursuant to provisions of the Life Insurance Act) on a range of investment management matters.
In implementing the investment strategies of Centuria LifeGoals we may from time to time:
Our Investment Committee is responsible for approving and overseeing the implementation of the investment strategy for each of the Investment Options. The Investment Committee is responsible for making decisions on matters such as asset allocation, investment manager selection and portfolio construction. The Investment Committee also takes advice from external experts and investment consultants and our Appointed Actuary, on a range of investment management matters.
Our Investment Committee meets regularly to review the fund’s investment strategies. process, which includes regular meetings with underlying fund managers, consideration of their investment style, investment process, the expertise of their investment team, past performance and other factors. We also review our investment managers’ performance on an ongoing basis to ensure they operate in accordance with our specified investment criteria.
Each of our investment managers (including our related companies) are entitled to receive fees for their services at commercial rates as agreed from time to time by us. These fees are paid from Centuria’s management fee and are not an additional cost to you. The underlying assets of the Centuria multi-manager investment options may be managed using a range of investment managers and investment styles. We may appoint an investment manager pursuant to an individual investment mandate or invest via a managed fund.
The assets of each Investment Option must be invested in accordance with the Life Insurance Act (including any prudential standards made under the Life Insurance Act) and the Fund Rules.
The Fund Rules specify a range of authorised investments into which the assets of an Investment Option may be invested.
We and/or the underlying investment managers may use derivatives, such as futures and options, for hedging purposes and/or to implement an investment strategy. However, we and/or the underlying investment managers will not use derivatives for gearing purposes or speculative activities. If derivatives are used, it is on the basis that the relevant Investment Option can always meet its commitments without having to borrow.
In setting or implementing investment strategies for Centuria LifeGoals, and when selecting or retaining investment managers, we do not give additional weight to labour standards or environmental, social or ethical considerations. Importantly though, Centuria Life supports sustainable, socially responsible enterprises that also offer attractive prospective returns and Centuria Life may classify certain Investment Options as a Responsible Investing Investment Option.
In order for a fund to be included as a Responsible Investing Investment Option, our screening process has been adapted in order to seek Investment Options that have strong Environmental, social and governance practices that contribute to the achievement of the United Nations Sustainable Development Goals and are signatories to the Principles of Responsible Investing (PRI).
For all other Investment Options which are not classified as a Responsible Investing Investment Option, Centuria Life does not take into account labour standards or environmental, social or ethical considerations for the purpose of selecting, retaining or realising investments of the underlying fund.