What can the Lifetime Retirement Income Fund actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| Cash and cash equivalents | 9% | 0% | 60% |
| New Zealand fixed interest | 14% | 4% | 24% |
| International fixed interest | 14% | 4% | 24% |
| Australasian equities | 16% | 6% | 26% |
| International equities | 36% | 26% | 46% |
| Listed property | 6.5% | 0% | 16.5% |
| Unlisted property | 2% | 0% | 10% |
| Other (Listed Infrastructure) | 2.5% | 0% | 12.5% |
Mandate flexibility (sum of max − min across all ranges): 179%. Moderate range — some manager latitude within a broader mandate.
Responsible-investment approach
The Manager and underlying fund managers generally seek out companies with good ESG practices. In selecting an underlying fund manager, one of the selection criteria is the manager's ESG practices. While the majority of underlying funds have ESG practices, a few underlying funds currently do not apply explicit ESG screens.
Derivatives policy
Derivatives may be used for risk management, performance enhancement or to optimise investment strategy implementation. Milliman is not allowed to use derivatives to gear the LRIF; unlisted and listed options will not be used; listed futures may be used to manage risk and reduce equity exposure; listed futures and/or OTC currency forwards may be used to manage exchange rate exposure of the LRIF portfolio.