Model portfolio enhancements department update
Download
1 / 21

Model Portfolio Enhancements & Department Update - PowerPoint PPT Presentation


  • 65 Views
  • Uploaded on

Model Portfolio Enhancements & Department Update. Contents. 1. Model Portfolios 2. Current Research Analysis 3. ‘BOB Highlights’. 1. Model Portfolios. 1.1 Background - Committed to supply for all approved platforms - Portfolios available for: * IOOF Pursuit Select (IPS) & Core

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Model Portfolio Enhancements & Department Update ' - panthea-zurlo


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Contents
Contents

  • 1. Model Portfolios

  • 2. Current Research Analysis

  • 3. ‘BOB Highlights’


1 model portfolios
1. Model Portfolios

  • 1.1 Background

  • - Committed to supply for all approved platforms

  • - Portfolios available for:

  • * IOOF Pursuit Select (IPS) & Core

  • * Navigator Investment & Retirement Services

  • * ING OneAnswer Super/ Pension/ Investments

  • * CFS FirstChoice Super/ Pension/ Investments

  • * Lonsec Model Portfolios

  • * plus MLC MasterKey & Custom

  • - Available for the six standard client risk profiles

  • - Can use without platforms. Eg DIY Super


1 model portfolios1
1. Model Portfolios

  • 1.2 Recap

  • - Suitable to use when providing an ‘investment service’ as part of value proposition – A & B grade clients

  • - Multi manager better when not servicing clients - A & B grade clients

  • - Portfolios use sector specific funds

  • - Modelled on each platforms investment menu

  • - Investment policy are ‘rules & boundaries’

  • - Asset allocation used is van Eyk (subject to change)

  • - Quarterly reporting provided

  • - Portfolios & quarterly reporting available through Xplan

  • - Adviser role is portfolio administration – annual reviews re-weighting


1 model portfolios2
1. Model Portfolios

  • 1.3 Investment Objectives

  • - Capital Safe: Aim is capital protection & hence 100% defensive assets

  • Objective is to outperform cash by 1% over 3 years

  • Suggested minimum investment timeframe is 3 years

  • - Conservative & Moderately Conservative: Aim is capital stability with some limited exposure to growth assets

  • Objective is to outperform cash by 2% & 3% over 5 years

  • Suggested minimum investment timeframe is 5 years

  • - Moderate Growth, Growth & High Growth: Aim is capital growth through a high exposure to growth assets

  • Objective is to outperform cash by 4%, 5% & 6% over 7 years

  • Suggested minimum investment timeframe is 7 years


1 model portfolios3
1. Model Portfolios

  • 1.4 Investment Policy

  • - Portfolio investment management style - neutrality

  • - Active & passive asset managers

  • - Regional asset allocation

  • - Strategic versus tactical asset allocation

  • - Optimal number of managers

  • - Market segmentation

  • - Currency management

  • - Alternate asset classes:

  • * Direct Property * Short selling * Derivatives

  • * Boutiques * Currency management


1 model portfolios4
1. Model Portfolios

  • 1.5 Asset Allocation

  • - Use van Eyk strategic asset allocation

  • - Capital safe risk profile previously 100% cash & fixed interest

  • New recommended asset allocation 40% cash/ 30% Aust FI/ 10% High Yield/ 20% International FI

  • - High yield is generally listed income securities/ sub investment grade corporate debt

  • - Regard aggressive mortgage trusts as ‘high yield’ –mezzanine debt/ construction financing etc

  • - Tailoring asset allocation – document in SOA’s


1 model portfolios5
1. Model Portfolios

  • 1.6 Selected Fund Managers

  • - Ultimately controlled by asset allocation & investment policy

  • - Eg four Australian equities funds required – style neutral

  • - Review investment universe/ quant & qual screen on:

  • * Track record * Review research reports

  • * Research ratings * Meet portfolio managers & team

  • * Vet tracking errors/ information ratios/ review manager ‘style’

  • * Blend potential portfolios & recommend

  • - Cash & fixed interest, understand risks/ constraints/ asset allocation

  • - Vet ongoing performance/ all information & changes


1 model portfolios6
1. Model Portfolios

  • 1.7 Platform Portfolios

  • IOOF Pursuit Core (old IPS models)

  • - CASH: IOOF Cash Enhanced Trust

  • - AUSTRALIAN FIXED INTEREST: IOOF W FI Interest Trust/ Challenger W High Yield

  • - INTERNATIONAL FIXED INTEREST: Macquarie Diversified Fixed Inter. Fund

  • - PROPERTY: Legg Mason Property Trust

  • - AUSTRALIAN EQUITIES: Ausbil Dexia Aust. Active Equity Fund/ Orion Australian Share Fund/ IOOF Perennial Value Aust Shares Trust/ Perpetual W Industrial Fund

  • - INTERNATIONAL EQUITIES: Axa Bernstein Global Value Equity Fund/ Credit Suisse International Shares Trust/ GSJB Were International Fund/ Platinum International Fund

  • IOOF Pursuit Select

  • - AUST. FIXED INT.: AMP Enhanced Yield Class A in place of Challenger High Yield

  • - PROPERTY: GSJB Were Property Securities in place of Legg Mason Prop. Securities

  • - AUSTRALIAN EQUITIES: Challenger Aust. Share in place of Ausbil Active Equity/ Schroder Australian Share in place of Orion Australian Share

  • - INTER. EQUITIES: Zurich International Share in place of GSJB Were International


1 model portfolios7
1. Model Portfolios

  • Navigator Retirement & Investment Service

  • - CASH: UBS Cash Fund

  • - AUSTRALIAN FIXED INTEREST: BT Wholesale Fixed Interest Trust/ Challenger W High Yield

  • - INTERNATIONAL FIXED INTEREST: Macquarie Diversified Fixed Inter. Fund

  • - PROPERTY: BT Property Securities Fund

  • - AUSTRALIAN EQUITIES: Ausbil Dexia Aust. Active Equity Fund/ Orion Australian Share Fund/ IOOF Perennial Value Aust Shares Trust/ Perpetual W Industrial Fund

  • - INTERNATIONAL EQUITIES: Axa Bernstein Global Value Equity Fund/ Credit Suisse International Shares Trust/ GSJB Were International Fund/ Platinum International Fund

  • Note, no portfolios for Navigator Access due to menu limitations. Recommend diversified use with sector blend.


1 model portfolios8
1. Model Portfolios

  • ING OneAnswer Super/ Retirement/ Investment

  • - CASH: ING Cash

  • - AUSTRALIAN FIXED INTEREST: Optimix Australian Fixed Interest Fund/ AMP Capital Enhanced Yield Fund

  • - INTERNATIONAL FIXED INTEREST: Merrill Lynch Monthly Income Fund

  • - PROPERTY: Credit Suisse Property Trust

  • - AUSTRALIAN EQUITIES: BGI Australian Shares Fund/ IOOF Perennial Value Aust Shares Trust/ Perpetual Australian Shares Fund/ Schroder Australian Equities Fund

  • - INTERNATIONAL EQUITIES: Axa Bernstein Global Value Equity Fund/ Credit Suisse International Shares Trust/ Zurich International Fund/ Platinum International Fund


1 model portfolios9
1. Model Portfolios

  • CFS FirstChoice Super/ Pension/ Investments

  • - CASH: CFS Cash Fund

  • - AUSTRALIAN FIXED INTEREST: Axa Alliance Australian Fixed Int. Fund/ Challenger W High Yield

  • - INTERNATIONAL FIXED INTEREST: CFS Diversified Fixed Interest Trust

  • - PROPERTY: BT Property Securities Fund

  • - AUSTRALIAN EQUITIES: Ausbil Australian Active Equity Fund/ BGI Australian Share Fund/ IOOF Perennial Value Aust Shares Trust/ Schroder Australian Equities Fund

  • - INTERNATIONAL EQUITIES: Axa Bernstein Global Value Equity Fund/ BT Core Global Share Fund/ Credit Suisse International Shares Trust/ Platinum International Fund


1 model portfolios10
1. Model Portfolios

  • Ex Lonsec Model Portfolios

  • - CASH: IOOF Cash Enhanced Trust

  • - AUSTRALIAN FIXED INTEREST: IOOF Wholesale FI Interest Trust/ Challenger W High Yield

  • - INTERNATIONAL FIXED INTEREST: BT Global Fixed Interest Fund

  • - PROPERTY: MLIM Combined Property Income Fund

  • - AUSTRALIAN EQUITIES: Ausbil Australian Active Equity Fund/ Orion Australian Share Fund/ IOOF Perennial Value Aust Shares Trust/ Portfolio Partners High Growth Shares Trust

  • - INTERNATIONAL EQUITIES: Axa Bernstein Global Value Equity Fund/ Barclays International Share Fund/ Zurich International Fund/ Platinum International Fund


1 model portfolios11
1. Model Portfolios

  • MLC MasterKey Custom

  • - CASH: UBS Cash Enhanced Trust

  • - AUST. FIXED INT: Credit Suisse Aust FI Interest Fund/ Challenger W High Yield

  • - INTERNATIONAL FIXED INTEREST: Macquarie Diversified Fixed Interest Fund

  • - PROPERTY: Legg Mason Property Trust

  • - AUSTRALIAN EQUITIES: Ausbil Dexia Aust. Active Equity Fund/ Barclays Australian Share Fund/ IOOF Perennial Value Aust Shares Trust/ Perpetual W Industrial Fund

  • - INTERNATIONAL EQUITIES: Axa Bernstein Global Value Equity Fund/ Credit Suisse International Shares Trust/ GSJB Were International Fund/ Platinum International Fund

  • Note, no portfolios for MasterKey due to menu limitations. Recommend diversified use with sector blend.


1 model portfolios12
1. Model Portfolios

  • 1.8 Current Issues

  • - Aim to align over time - Ausbil Active Equity inclusion first step (see new Model Portfolios report for specific recommendations)

  • - New format for presenting portfolios – one table!

  • - Quarterly reporting to continue

  • - Ongoing work: Xplan integration/ strategic asset allocation (global property)/ Pursuit product development (automatic re-weighting) etc

  • - Reporting changes: Can no longer portfolio performance reporting for all portfolios due to:

  • * Theoretical returns

  • * No reporting tool – manually calculated

  • * Convergence of many portfolios – WCFP/ FP/ Lonsec

  • - Will provide ongoing core portfolio reporting and individual manager & benchmark returns – ideally provide clients actual net return!

  • - Income biased portfolio – early 2007


2 current research analysis
2. Current Research Analysis

  • 2.1 Agribusiness Review

  • - Currently reviewing

  • - Analysis of sub asset classes: timber chipping/ timber other/ horticulture/ viticulture etc

  • - Different risk profiles of sub asset classes – some more ‘commodity like’ in nature – other more speculative

  • - Need to examine providers – important to diversify exposure to promoters/ products

  • - Adviser policy being changed from marginal tax rate focus to strategy focus (eg CGT issues/ non deductible debt strategies/ family tax benefit etc)

  • - Will focus on the cheaper & better rated products – price certainly an issue for ‘commodity like’ offers


2 department update
2. Department Update

  • 2.2 Super Choice

  • - Mercer Super comparator tool

  • - Product database being built – forward suggested funds not covered

  • - Adviser policy to change – will remove need to forward completed analysis forms to Research Department

  • - Policy focus is to use super comparator table to form ‘basis for recommendation’ – your choice whether to include analysis in SOA

  • 2.3 Non Core Approval Process

  • - Use Product Request form for new product recommendations except if 4 or 5 star S&P rated, forward email

  • - If HOLD rec for existing investor, forward email

  • - Ensure full manager/ product/ investment option is detailed on all requests


3 bob highlights
3. ‘BOB’ Highlights

  • Recent ‘Best of Breed’ (BOB) Research tour – Reviewed 12 managers & estimated 30 products.

  • Investment Trends:

  • - Increasing use of quantitative (quant) management

  • * Improvements in technology & data quality

  • * Screening based on mix of fundamental (bottom up P/E; P/B; DCF’s etc) & technical analysis (charting; valuation focus)

  • * Allows large universe to be screened – traditional mgrs use MSCI

  • * Traditional fundamental managers use

  • * More & more dedicated quant funds – optimiser use


3 bob highlights1
3. ‘BOB’ Highlights

  • - Emerging markets focus – not just China!

  • * Largest growth potential due to GDP growth

  • * All countries are unique. Eg China manufacturing/ Russian & Brazil resources/ Indian IT etc

  • * Volatility reducing as risk premiums reduce – developing monetary policies/ banking systems/ infrastructure etc

  • * Inter. Equities funds increasing exposure to generate ‘alpha’

  • * Diversified funds increasing trend to use

  • - Thematic investing – dedicated style + ‘traditionals’ increasing use

  • - Global property commitment

  • - Increasing development/ use of structured product

  • - Sophistication of diversified fixed interest/ increasing focus of equities managers (due to complex debt structures)


The end
The End

  • QUESTIONS


Disclaimer
Disclaimer

  • Consultum Financial Advisers Pty Ltd, ABN 65 006 373 995, Australian Financial Services Licence No. 230323 and Life

  • Insurance Broker.

  • This document has been prepared for general information purposes only and not as specific advice to any particular

  • person. Before making any investment decision based on this advice, you should consider, with or without the

  • assistance of an adviser, whether it is appropriate to your particular investment needs, objectives and financial

  • circumstances. A Product Disclosure Statement on any financial product mentioned in this document should also be

  • obtained and read prior to proceeding with an investment decision.

  • Although every effort has been made to verify the accuracy of the information contained in this document, Consultum

  • Financial Advisers Pty Ltd, its officers, employees and agents disclaim all liability (except for any liability which by law

  • cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this document or any

  • loss or damage suffered by any person directly or indirectly through relying on this information.

  • This information has been provided for the exclusive use of the party to whom it is addressed and must not be provided

  • to any other party or disseminated in any way without the express approval of Consultum Financial Advisers Pty Ltd. It

  • is intended for your sole use and must not be passed onto a retail client or be made available to any retail client and any

  • provision of advice based on this information should not be attributed to Consultum Financial Advisers Pty Ltd.


ad