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How do we invest your money?
At VicWide we use a very analytical approach to
ascertaining how we invest your money. We use a process called benchmarking and
risk profiling.
Once a persons tolerance to variations in
investment markets is determined, we then structure a portfolio consisting of a
predetermined mix of:
-
Cash
-
Fixed Interest
-
Australian Shares
-
International Shares
-
Property
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15
September 2001
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INVESTOR
PROFILE
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Investment
Objectives
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Conservative
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Cautious
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Prudent
(Balanced)
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Assertive
(Growth)
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Aggressive
(High Growth)
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Minimum Investment Term
|
2
year
|
3
years
|
4
years
|
5
years
|
7
years
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Long
term Objective
|
CPI
+ 3
|
CPI
+ 3.5
|
CPI
+ 4
|
CPI
+ 4.5
|
CPI
+ 5
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Portfolio
Characteristics
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|
|
|
|
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Defensive v. Growth Asset Balance
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70%
v. 30%
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48%
v.52%
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30%
v. 70%
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14%
v. 86%
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0%
v. 100%
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|
Domestic v. International Balance
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67%
v. 33%
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67%
v. 33%
|
67%
v. 33%
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66%
v. 34%
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60%
v. 40%
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Using
Sector Funds (%):
|
TAA
|
SAA
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TAA
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SAA
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TAA
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SAA
|
TAA
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SAA
|
TAA
|
SAA |
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Australian Shares
|
12%
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12%
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24%
|
24%
|
36%
|
35%
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46%
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45%
|
50%
|
50%
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|
International Shares
|
10%
|
10%
|
19%
|
19%
|
27%
|
25%
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32%
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31%
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39%
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40%
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Property Trusts
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9%
|
8%
|
10%
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9%
|
12%
|
10%
|
11%
|
10%
|
11%
|
10%
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Australian Bonds
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26%
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26%
|
24%
|
24%
|
15%
|
17%
|
8%
|
9%
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0%
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0%
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International Bonds
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14%
|
23%
|
8%
|
14%
|
3%
|
8%
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0%
|
3%
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0%
|
0%
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Cash (or cash-like)
|
29%
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21%
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15%
|
10%
|
7%
|
5%
|
3%
|
2%
|
0%
|
0%
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Risk
Parameters (% pa.)
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|
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Nominal Rate of return
(historical real return with prospective inflation
adjustment)
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7.6%
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8.5%
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9.1%
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9.5%
|
10.0%
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The worst return over any 12 mths.
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-7.2%
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-9%
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-10.5%
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-11.6%
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-13%
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The best return over any 12 mths.
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17.5%
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23%
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27%
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32%
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35%
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Historical Incidence of a negative return
|
1
yr in 18
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1
yr in 15
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1
yr in 11
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1
yr in 7
|
1
yr in 6
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Historical range of returns (±
2 st dev.)
|
-3
to 18%
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-4
to 21%
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-6
to 26%
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-8
to 28%
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-11
to 31%
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Purpose
and Suitability
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|
|
|
|
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Secure Current Income
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High
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Moderate
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Low
|
Not
Appropriate
|
Not
Appropriate
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Capital Stability
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High
|
Moderate
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Low
|
Very
Low
|
Not
Appropriate
|
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Steady Growth of Capital & Income
|
Moderate
|
High
|
High
|
Low
|
Not
Appropriate
|
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Long term Wealth Accumulation
|
Not
App
|
Low
|
Moderate
|
High
|
High
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High Growth or Geared Investments
|
Not
App
|
Not
Appropriate
|
Moderate
|
High
|
High
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TAA = Tactical Asset Allocation
SAA = Strategic Asset Allocation
We apply these percentages to each class of
investor:
-
Cautious
-
Conservative
-
Balanced
-
Growth
-
High Growth
We then select a range of fund managers who have
consistently out performed the respective indices in whom we entrust our clients
money. We generally do this via Master Trusts or Wrap
accounts
Key Benefits
- Tailored to suit each client
- Easy to manage against benchmarks
- Diversification of investments
- Improved returns with lower volatility
- Consolidated Reporting
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