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MLC's innovative three-part investment system has proven its effectiveness over the 14 years since its introduction.
A range of the world's best investment managers
Three way diversification
Strategic long term view
1. We use a range of the world's best investment management companies
At MLC, we believe that no single investment manager will be the best performer in all asset classes or all markets all of the time. For this reason, we have created an investment system that provides our investors with access to a combination of specialist investment managers in each asset class.
Every investment manager we use has a clearly defined investment style and a discernible competitive edge.
Building and maintaining the right combination of specialist investment styles and managers requires significant resources. At MLC, we have a dedicated team of in-house investment professionals constantly researching, monitoring and managing a dynamic combination of the world's best investment managers. This team is called MLC Investment Management.
Every investment manager we appoint is subject to a rigorous selection process and ongoing monitoring and review to ensure the overall combination of investment managers continues to deliver to our expectations for each fund.
2. We diversify your portfolio in three important ways
Diversifying your portfolio helps to reduce the volatility of investment returns. The MLC MasterKey investment system gives you broad diversification at many levels.
Diversification across asset classes *
The major asset classes - shares, property, bonds and cash - perform differently under different economic and market conditions. With MLC MasterKey, you can choose to diversify your investment across a broad range of asset classes to capture the benefits of strong returns over the long term and reduce the impact of downward fluctuations in any one asset class over the short term.
Diversification within asset classes
The MLC MasterKey investment system also spreads your exposure within each asset class across a wide range of countries, currencies, industries and stocks. Our global approach to investing ensures that your investment is not narrowly concentrated in a particular region or industry, and helps to reduce the impact of a regional or industry downturn.
*Diversification across asset classes does not apply to the specific sector funds.
Diversification across investment management styles +
Different investment management styles also tend to excel at different times under different economic and market conditions. The aim of the MLC MasterKey investment system is to combine a range of investment managers with complementary investment styles. We use sophisticated techniques to neutralise the bias to any one style in each asset class and to ensure that diversification of management styles actually results in diversification of underlying investments.
+ Diversification across investment management styles does not apply to the single manager, specific sector funds.
Note:
- Multi manager, multi sector funds are diversified across investment managers and asset classes.
- Multi manager, specific sector funds are diversified across investment managers and specialise in a particular asset class.
- Single manager, specific sector funds are managed by a single manager and specialise in a particular asset class.
3. We take a strategic, long term view
At MLC, we believe that trying to forecast and capture short term market movements is, in practice, unreliable and unlikely to add value to your investment over the long term.
As a result, we use a more strategic approach, setting long term target weightings for each asset class, investment style and investment manager. These target weightings take into account the long term relationship between the various asset classes and investment management styles, as well as the investment objective for each fund.
We don't make short term, tactical changes to these target weightings. Instead, we use a disciplined rebalancing procedure to maintain the integrity of the process and ensure the exposure to the various asset classes and investment managers reflects their long term targets.
This strategic long term view is not to be confused with the positions taken by each of our specialist investment managers within each asset class. The specialist investment managers we employ take active positions in accordance with their investment style, changing exposures to countries, industries and stocks in order to increase returns or provide a defence against downward price movements.
Do you want to find out more about each of our specialist investment managers?
Please note the external Funds follow an investment process outside the MLC MasterKey investment system.
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