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MLC managed funds

Our investment philosophy

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The core of any successful investment is a clear investment philosophy. MLC's investment philosophy defines the kind of investor we are and, most importantly, how we manage your money.

These four beliefs are the foundation of our business:

  • We can manage uncertainty about the future by considering many possible market environments.
  • We are risk managers, not risk avoiders.
  • We are responsible for all aspects of our portfolios.
  • We will never be complacent.

We believe that by applying this philosophy, we can deliver more reliable returns to you. Our approach to investing - the way we design, construct, implement and manage our portfolios - is built around this philosophy.

Our investment approach

Our portfolios make sophisticated investing straightforward. We use our market-leading investment approach to structure our portfolios with the aim of delivering more reliable returns in many potential market environments.

There are four key aspects to our market-leading investment approach.

  • Our multi-asset portfolios focus on what affects investor outcomes the most: asset allocation. Each asset class has its own risk and return characteristics. We allocate money between asset classes based on the following beliefs:

    • Risk can't be avoided, but can be managed.
      Key to MLC's investment approach is our unique Investment Futures Framework. It guides our forward-looking approach to managing risk.

      In an unpredictable and constantly changing world, we use the Framework to help continually identify the very wide range of potential market scenarios - both good and bad - that could occur.

      The Framework also helps us analyse how these scenarios could affect the risks and returns of asset classes in the portfolios.

      Our investment experts use the insights from this analysis to work out the combination of asset classes that will best achieve a portfolio's objective.

      This helps us prepare our portfolios for future market ups and downs.

    • Risks and returns vary through time.
      Our Investment Futures Framework shows us how the potential risks and returns of each asset class could change over the next three to seven years.

      With this information we can adjust our portfolios' asset allocations to reduce the risk or improve the return potential of the portfolios.
    • Diversification matters
      Asset classes perform differently in different market conditions.

      Investing in many asset classes helps us smooth out the overall portfolio returns, offsetting the ups and downs of each asset class.

  • Our portfolios have different investment objectives. That's why our investment experts select a different mix of assets and investment managers for each.

    Our investment managers may be specialist in-house managers, external managers or a combination of both.

    We research hundreds of investment managers from around the world and select from the best for our portfolios.

    We then combine them in our portfolios so they complement each other.

    This multi-manager approach helps to reduce risk and deliver more consistent returns.

    Find out more about our current investment managers.

    View the current managers of a portfolio and their allocations using the Fund Profile Tool.

  • To make sure our portfolios are working hard for our investors, we continually review and actively manage them.

    We may adjust the asset allocation, investment strategies and managers. This may be because our assessment of the future market environment has altered or because we have found new ways to balance risk and return in the portfolios.

  • We deliver better returns by avoiding unnecessary costs. We do this by carefully managing cash flows, tax and changes in our portfolios.

Investment Futures Framework video

The Investment Futures Framework gives a detailed view of how returns vary in each scenario. This also provides information about the nature and extent of investment risks.

This short animated video helps explain the Investment Futures Framework.

Find out more

Find and download a range of charts, videos, forms, brochures and PDSs.

Meet the MLC investment team and portfolio specialists.

Fund Profile Tool, opens in new window

The latest commentary and information on performance, asset allocation and investment managers for MLCs.