1. Tactical Funds
In these funds, we make the decision when and what mix of Australian shares, International shares, cash or bonds to invest in.
There are three sub-funds, and typically we will blend all three of these funds for you so that you get a mix of assets appropriate for your income needs and your risk preference:
- Growth: In this fund there is a higher weighting of growth investments. Clients with a lower tolerance for risk can blend this model with other models to achieve a more appropriate risk outcome.
- Accumulation: This is a conservative portfolio for investors who do not have an income requirement. There is a low weighting of growth investments, and we buy stocks in this portfolio without regard to the dividend yield.
- Income: This is a conservative portfolio for investors who have a preference for income rather than capital gains. There is a very low weighting of growth investments, and stocks in this portfolio are screened for yield.
2. Tactical Foundation
This is a fund for investors with lower balances. It aims to provide investors with an introduction to the benefits of individual share ownership through a separately managed account, whilst still ensuring investors maintain a reasonable share parcel size.
We again make the decision when and what mix to buy of Australian shares, International shares, cash or bonds.
Due to the lower balances though, direct international share ownership is not feasible and so this model achieves this through an individual Australian share portfolio, a selection of International exchange traded funds, and defensive holdings in bonds and cash.
3. Shares only portfolios
These are “carve outs” of the Australian or International parts of the above portfolios.
They are a core holding, designed to have exposure to the large capitalisation part of the Australian or International market. Its intended for investors who wish to do their own asset allocation, and can use this fund to get exposure to higher quality and cheaper stocks in the Australian market.
The funds maintain minimal cash balances – i.e. the tactical funds above will reduce share weights when stock markets are expensive or risky, whereas this fund will remain fully invested. It is up to the investor to manage the asset allocation when buying this fund.
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