Investing with MLC Real Return - Financial Advisers

MLC Real Return

Targeting returns above inflation while
managing market uncertainty

How we invest

MLC Real Return is managed using our market-leading investment process. This process has consistently provided solid returns and effective risk management in a range of market conditions.

Key to the investment process is MLC's unique forward-looking investment approach.

In an unpredictable and constantly changing world, our investment approach helps us continually identify the very wide range of economic and market conditions, or 'scenarios', that could occur.

It then helps us analyse how these scenarios could affect the funds. For example, what would happen to your investment if economic growth in China was to slow significantly? Or, what if the global economy recovers faster than economists expect?

Our investment experts use the insights from this analysis to adjust the funds. They change the asset allocation to control potential risks and capture return opportunities. This means the funds are better positioned for a range of possible future environments.

Find out more about our approach here.

Managing risk to control losses and deliver smoother returns

Limiting losses is crucial for investors in or near retirement, who have limited opportunity to rebuild their savings.

But it's also important for those newer to investing. A major setback early on can lead these investors to sell out of the market at a bad time and permanently affect their confidence about investing.

So in managing the MLC Real Return trusts, we aim to limit the risk of large losses over different investment timeframes. This means investors can have more confidence that they won't suffer a serious loss at an important stage of their investment journey.

This approach should also deliver a smoother, less volatile pattern of returns than the market.

Asset allocations that can change when markets change

The MLC Real Return trusts have very flexible asset allocations. This means we can easily change the mix of assets as market conditions evolve and we find different ways to manage risk and achieve returns.

Extensive diversification to manage risk and capture returns

Simply investing in mainstream assets (like shares, fixed income, property and cash) won't always provide the returns to achieve the funds' above-inflation targets. So we also invest in other asset classes like infrastructure, as well as exposure to carefully chosen alternative assets and other strategies (like private equity) that can help us deliver returns and manage risk. Some of these sophisticated strategies are unique to MLC.

We also use many specialist managers, who may be MLC’s investment experts or some of the best investment managers from around the world.