Investment Objective

The portfolio seeks to provide investors with a return of 2% (plus any franking credits) above the 12 month term deposits over rolling three year period. While past performance is no guarantee of future performance, historically this portfolio has beaten the benchmark over all rolling three periods it has been offered.

Typical Investors

  • Investors focused more on income than capital growth over the shorter term and who have a lower tolerance for risk and market volatility.
  • Investors seeking more flexibility and liquidity than is possible with term deposits.
  • Retired investors using it as a safer means of conducting a regular withdrawal while also owning a growth portfolio. You can sweep funds from the latter to the former as a top-up when sharemarkets seem fully priced. We provide general guidance on this strategy in our newsletters.
  • Investors in accumulation mode who are new to shares and still getting comfortable with the volatility of the sharemarket, and don’t want to commit everything to a market volatility portfolio immediately. While not an ideal long-term strategy it is better than not investing at all.
  • Investors who have a large cash sum to invest, and wish to manage their market timing risk by dollar cost averaging into a more volatile model from this low volatility model.
  • Experienced investors who want to shelter in calmer waters from any perceived sharemarket storm. Not a recommended strategy, as we do manage market risks in the Managed Equity portfolio, and in our experience retail investors have generally poor timing in getting out, and often fail to get back in.

Investment Strategy and approach

Our investment philosophy is based on a fundamental belief that securities markets are not fully efficient and opportunities exist at the country, asset allocation, sector and individual security level to add value through superior selection and ongoing active management. This NOT a 60/40 portfolio. We actively manage over the cycle. This means we may and do avoid certain asset classes at times. In this portfolio, we seek to participate in new wholesale opportunities that would not otherwise be available to retail investors.

Recommended minimum investment


Indicative number of holdings

10-20 dynamically weighted.

Asset Allocation %

A combination of listed shares, preference shares, listed hybrids and fixed interest securities, and listed ETF’s that specialise in income related activities.

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