Investment Objective

The portfolio is seeking to provide investors with high levels of capital appreciation and some income (about 20% of total return, ignoring the tax benefits of franking credits), by investing in an actively managed portfolio of Australian listed securities.

Over all periods of 20 years, the portfolio should generate returns of at least 9-10% per annum on average, with associated volatility. This assumes all dividends and other income are reinvested. Periods of rising long-term interest rates tend to subdue returns and are often associated with negative or flat years.

Over the past ten years to January 2024 the Australian stockmarket as represented by the S&P/ASX200 has underperformed its long-term average. However, the AC Managed Equity portfolio exceeded its objective over all rolling 6-year periods, with approximately 5% p.a. outperformance (i.e. about 12.2% compared to 7.4% per annum for the S&P/ASXTR index over the past ten years).

Typical Investor

This portfolio is designed for investors with a long-term investment horizon of 6 plus years seeking high investment returns over the longer term and are therefore prepared to accept a correspondingly high level of risk and market volatility to achieve this, and who wish to outsource the management and administration of the holdings. It caters for both accumulators and people drawing down in retirement, although the latter is best to have another source of ready cash, so that regular withdrawals can be suspended during periods of falling prices. Suitable for gearing.

Investment Strategy and approach

The investment approach is encapsulated in the Philosophy and Investment Strategy detailed earlier in this menu

Recommended minimum investment


Indicative number of holdings

15-25 dynamically unequally weighted.

Asset Allocation

Predominantly Australian based share exposure with up to 30% in international equities exposure via listed ETF’s and some allowance to include hybrids and other income bearing securities. There is an ability to switch to 70% in cash if conditions appear to merit it, although a 40% cash weight is the more common, albeit infrequent choice.

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