Download Astute Growth Model Portfolio

Investment Profile | As at: 30-09-2015
Astute Growth Model Portfolio
Risk Profile Moderate to High
Inception 30 November 2012
Portfolio Overview
Performance - as of 30 September 2015
The Growth Model Portfolio is designed for investors with an
investment time horizon of seven years who seek the potential for
capital growth and diversification across multiple asset classes,
investment strategies, investment managers and styles. They are
prepared to accept a medium to high risk of capital loss to achieve this
objective.
Cumulative Return Since Inception
Astute Growth Model Portfolio
Investment Horizon 7 years
CPI plus 3.5% pa
50
45
40
Performance Objective
To earn a rate of return that exceeds CPI by at least 3.5% per annum
over rolling 7 year periods.
35
30
Portfolio Construction
25
This portfolio is constructed by the Astute Financial Management
Investment Committee (‘Investment Committee’), on advice from
Ibbotson Associates Australia Limited (‘Ibbotson’) as asset consultant.
The underlying asset allocation will be set with reference to prevailing
market conditions, within the stated ranges.
Ibbotson assists the Investment Committee in the overall supervision of
its investment program and offers guidance and recommendations in
the selection and retention of investments available within an
investment portfolio. However, the portfolio’s construction remains the
responsibility of the Investment Committee (and may contain individual
investments not currently recommended by Ibbotson).
20
15
10
5
%
0
Mar-13
Total Returns %
Mar-14
Sep-13
1
Sep-14
Mar-15
3 Months
CYTD
1 Year
Astute Growth Model Portfolio
-0.18
4.27
9.16
CPI plus 3.5% pa
1.32
3.92
5.00
Sep-15
3 Years (pa)
5 Years (pa)
Asset Allocation Ranges & Current Positions %
Current Position
Range
65
60
55
50
45
40
35
30
25
20
15
10
5
0
Australian Shares
International Shares
Australian Property
About Ibbotson
Ibbotson Associates Australia Limited is a leading provider of
investment consulting services with over 35 years of asset allocation,
manager selection, and portfolio construction experience in Australia
and overseas. Ibbotson is part of the global Morningstar Investment
Management Division, and has access to the full breadth of resources
within Morningstar, Inc., one of the most recognised and trusted
names in the investment industry serving more than 9.9 million
individual investors, 250,000 financial advisors, and 1,700 asset
management firms around the world (as of December 31, 2014).
Astute Financial Management has appointed Ibbotson Associates
Australia to provide consulting services related to its models.
Notes
1 Model portfolio returns are before tax and after management fees and assume
reinvestment of income. Underlying fund returns with the exception of Ibbotson Trusts
have been sourced from Morningstar Direct. Returns for Ibbotson Trusts are based on
hard close exit unit prices. Total return for the model portfolio is the sum of the weighted
return of the underlying managers with the weights rebalanced at the end of each
month.
International Property
Global Infrastructure
Alternatives
Australian Bonds
International Bonds
Cash
Portfolio Allocations and Performance *
Vanguard Cash Reserve**
Ibbotson Diversified Alternatives Trust
Nikko AM Australian Bond
MFS Global Equity Trust
Magellan Global (Hedged)
Templeton Global Equity
Aberdeen Emerging Opportunities
Vanguard Australian Property Secs Idx
APN A-REIT Fund
Investors Mutual WS Australian Share
PIMCO EQT Wholesale Global Bond
Perpetual W Share Plus L/S
Magellan Infrastructure (Hedged)
Bennelong Avoca Emerging Leaders
Fidelity Australian Equities
Weighting %
3 Months
1 Year
3 Years
5 Years
23.00
13.50
9.00
8.00
7.00
7.00
6.00
5.00
4.00
4.00
4.00
3.00
2.50
2.00
2.00
0.50
0.77
1.91
1.00
-3.34
-3.50
-7.20
1.16
0.50
-5.40
0.91
-2.20
2.85
-3.69
-5.05
2.34
4.68
6.41
22.15
7.74
9.94
1.37
19.96
18.17
1.75
5.02
3.73
14.78
-1.03
1.87
2.58
5.11
4.98
25.84
3.34
5.53
6.50
17.83
22.57
7.22
16.08
16.05
11.15
5.43
15.88
16.35
2.88
11.76
14.30
5.00
13.46
14.14
10.21
7.26
13.30
*complete historical performance of current managers. Not all managers have consistently been in the model for all time periods.
** or other approved cash option.
This document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © Copyright of this document is owned by
Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior
written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been
taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information
included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. Ibbotson warns that (a) Ibbotson has not considered any individual
person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Before making any decision about whether to invest in a
financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.
1.18
8.75
Investment Profile | As at 30-09-2015
Ibbotson’s Investment Outlook
Contact Details
The panic that gripped markets during May and June continued into this quarter as confirmation of a
slowing Chinese economy, an unexpected devaluation in the Yuan and differing views regarding the
timing of U.S. interest rate rises weighed on investor sentiment. As such, global equity markets
endured an extremely volatile period.
Ibbotson Associates Australia Limited
Level 36, Australia Square
264 George Street
Sydney NSW 2000
Tel: +61 2 9276 4550
Fax: +61 2 9276 4560
Web: www.ibbotson.com.au
Email: [email protected]
The MSCI All Countries World ex Australia ($A Hedged) Index fell -7.92% for the quarter, with
weakness being most acutely felt in Japanese and Emerging Market equities. European equities (ex
UK), also had a weak quarter and are now barely recording gains for the 12 months to 30 September
2015, following on from a tumultuous June quarter that resulted in the near default (and possible
expulsion from the Eurozone) of Greece. U.S. and Australian equities similarly declined (with the
S&P/ASX 300 Accumulation Index down -6.47%) and both are now delivering negative returns over the
same period. Importantly however, whilst the performance of International equities was poor, losses
were limited in Australian dollar terms, as our currency weakened significantly against peers.
Australian and international bonds were among the better performers, as the market continued to
adjust to the ‘lower for longer’ interest rate environment, both here and abroad. Australian property
and cash also delivered positive returns over the quarter.
Ibbotson continues to expect heightened volatility in markets as geopolitical and macroeconomic
issues play out, particularly as we await clarity around the timing of any interest rate rises in the U.S.
and look for stabilisation in global growth forecasts. In our view, having a valuation-driven dynamic
asset allocation approach in this environment will be crucial to achieving the investment objectives,
over the longer term.
This document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). Ibbotson has created this document using
Morningstar DirectTM. © Copyright of this document is owned by Ibbotson and any related bodies corporate that are involved in the document’s creation. As such the document, or any part of it, should not be copied, reproduced, scanned or embodied in any
other document or distributed to another party without the prior written consent of Ibbotson. The information provided is for general use only. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third
party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third parties accept responsibility for any inaccuracy or for investment decisions or any other
actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital.
Ibbotson warns that (a) Ibbotson has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current
situation. Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550.