INVESTMENT OVERVIEW
- Growth/Defensive
- Min. Timeframe
- Min. Investment
- Benchmark
- Inception Date
- 90/10
- 7 Years
- $50,000
- AAN Growth Custom Composite
- 10 August 2016
Investment Objective
The Growth portfolio’s investment objective is to outperform CPI by 4.0% p.a. before fees over rolling 7-year periods.
INVESTMENT APPROACH
The Growth portfolio is an actively managed portfolio providing a diversified exposure with a focus on growth asset classes (90%) relative to defensive asset classes (10%). The portfolio is constructed using a multi-manager approach which seeks to incorporate a blend of investment styles.
The portfolio will generally be reweighted to its strategic weights quarterly and may employ a blend of active and passive investment styles based on market conditions. Investment exposure is obtained through a combination of direct equities, exchange traded products and/or managed funds.
INVESTOR PROFILE
Investors who:
- seek a hjgher return above inflation through exposure to a diversified portfolio with an emphasis towards growth asset classes;
- seek exposure to a portfolio diversified across a range of asset classes and blend of investment styles;
- are prepared to accept a higher level of volatility in their portfolio to allow for achieving the longer-term investment objective; and
- can invest for a period of at least 7 years.
ASSET ALLOCATION
PORTFOLIO HOLDINGS
| Holdings | |
|---|---|
|
DOMESTIC EQUITY |
37.6% |
|
Ausbil Australian Active Equity Fund |
9.5% |
|
Praemium SMA BlackRock Index – Top 20 Model
|
9.4% |
|
Praemium SMA DNR Capital Australian Equities High Conviction |
9.2% |
|
VanEck Australian Equal Weight ETF
|
9.5% |
|
INTERNATIONAL EQUITY
|
36.9% |
|
Franklin Global Growth Fund
|
8.8% |
|
Lazard Global Equity Franchise Fund |
8.9% |
|
Vaneck MSCI International Quality ETF |
9.5% |
|
Vanguard MSCI Index International Shares (Hedged) ETF |
9.7% |
|
LISTED PROPERTY & INFRASTRUCTURE
|
5.2% |
|
iShares Wholesale Australian Listed Property Index Fund |
5.2%
|
|
FIXED INTEREST
|
10.1% |
|
iShares Core Composite Bond ETF
|
5.0% |
|
Yarra Enhanced Income Fund |
5.0% |
|
ALTERNATIVES |
10.2%
|
|
AAN Index Growth |
10.2% |
DOMESTIC EQUITY
This portfolio provides access to Australian-listed companies, offering investors exposure to a wide range of industries, including financials, mining, and healthcare. By investing in a mix of large, mid, and small-cap stocks, the portfolio aims to capture growth opportunities within the domestic market. Australian shares have historically been a strong performer, providing both capital appreciation and dividend income over time. This asset class is a suitable choice for those looking to invest locally and benefit from the growth potential of the Australian economy.
AUSBIL AUSTRALIAN ACTIVE EQUITY FUND
The Ausbil Australian Active Equity Fund is a managed investment fund that aims to achieve returns exceeding the S&P/ASX 300 Accumulation Index over the medium to long term while providing moderate tax-effective income. Managed by Ausbil’s experienced investment team, the fund primarily invests in a concentrated portfolio of 30 to 40 large-cap Australian equities, focusing on companies with positive earnings and growth potential. As of September 2023, the fund had assets under management of approximately AUD 1.55 billion, with a management fee of 0.90% and a performance fee of 0.00%
Benchmark: S&P/ASX 300 Accumulation Index
Style: Core Equity
PRAEMIUM SMA BLACKROCK INDEX - TOP 20 MODEL
The Praemium SMA BlackRock Index – Top 20 Model is a concentrated, passively managed Australian equity portfolio that provides exposure to the 20 largest companies listed on the ASX, typically encompassing blue-chip names across banking, resources, telecommunications, and consumer sectors. The model is designed to replicate the performance of the S&P/ASX 20 Accumulation Index, offering investors a straightforward and low-cost way to gain access to the most established and liquid companies in the Australian market. As part of Praemium’s SMA structure, it enables beneficial ownership and tax efficiency, while BlackRock’s index management expertise ensures accurate tracking and disciplined implementation. This model is suited to investors seeking large-cap Australian equity exposure with high liquidity and a core market representation.
Benchmark: S&P/ASX 20 Accumulation Index
Style: Passive top-20 blue-chip index strategy
PRAEMIUM SMA DNR CAPITAL AUSTRALIAN EQUITIES HIGH CONVICTION
The Praemium SMA DNR Capital Australian Equities High Conviction Model is a concentrated, actively managed portfolio of 15–30 high- quality Australian companies selected for their strong fundamentals, industry position, and attractive valuation. The strategy follows a style- neutral, bottom-up investment approach, focusing on businesses with durable earnings, sound management, and financial strength. A valuation overlay ensures only well-priced opportunities are included, and the portfolio is designed for long-term capital growth over a five- year horizon or more. Offered through Praemium’s SMA platform, it also provides beneficial ownership and tax efficiency for investors seeking focused exposure to quality Australian equities.
Benchmark: S&P/ASX 200 Total Return Index
Style: Active, high-conviction Australian equities with quality and
valuation discipline
VANECK AUSTRALIAN EQUAL WEIGHT ETF
The VanEck Australian Equal Weight ETF provides investors with exposure to a diversified portfolio of Australian equities, investing in large- cap companies across various sectors. Launched on March 4, 2014, the fund aims to replicate the performance of the Market Vectors Australia Equal Weight Index by equally weighting its holdings, which helps to reduce concentration risk associated with traditional market- capitalization-weighted indices. The ETF is managed by Van Eck Associates Corporation and is designed for those seeking a balanced investment approach within the Australian equity market. It offers a transparent fee structure and is traded on the Australian Securities Exchange (ASX) under the ticker MVW.
Benchmark: Market Vectors Australia Equal Weight Index
Style: Equity ETF focused on equal-weighted Australian stocks
INTERNATIONAL EQUITY
The International Shares portfolio offers diversified exposure to global markets, allowing investors to benefit from the performance of companies outside Australia. By investing in international equities, this portfolio provides access to industries and sectors that may be underrepresented in the local market, such as technology, pharmaceuticals, and global consumer brands. The portfolio is designed to reduce risk through international diversification and to capture long-term growth opportunities from developed and emerging economies alike.
FRANKLIN GLOBAL GROWTH FUND
The Franklin Global Growth Fund – Class A (APIR: FRT0009AU) is an actively managed investment vehicle that seeks to outperform the MSCI World ex Australia Index in Australian dollar terms after fees and expenses, over the medium to longer term. The fund invests in a diversified portfolio of equity securities listed on recognized stock exchanges in both developed and emerging markets worldwide, excluding Australia. The investment strategy focuses on identifying high-quality growth companies through fundamental bottom-up research, aiming to construct a portfolio of approximately 35-40 stocks with long-term competitive advantages in their respective sectors. As of December 31, 2024, the fund’s size was approximately AUD 594.69 million, with a management fee of 0.90% per annum.
Benchmark: MSCI World ex Australia Index
Style: Active, global growth equities
LAZARD GLOBAL EQUITY FRANCHISE FUND
The Lazard Global Equity Franchise Fund is an actively managed investment fund that targets companies with robust economic franchises, characterized by predictable earnings and strong financial productivity. With a concentrated portfolio of 25 to 50 high-quality stocks, the fund seeks to deliver long-term capital appreciation while managing risk through careful selection and valuation analysis. As of September 2023, it reported a three-year annualized return of 10.51% and an inception-to-date return of 13.31%, although it experienced a quarterly decline of -3.88%. The fund primarily invests in sectors such as Healthcare, Utilities, and Technology, with a significant portion of its assets allocated to U.S.-based companies.
Benchmark: MSCI World Index
Style: Growth/Quality
VANECK MSCI INTERNATIONAL QUALITY ETF
The VanEck MSCI International Quality ETF provides investors with exposure to a diversified portfolio of high-quality international companies listed on exchanges in developed markets, excluding Australia. Launched on October 29, 2014, the fund aims to track the performance of the MSCI World ex Australia Quality Index, focusing on companies characterized by high return on equity, earnings stability, and low financial leverage. With approximately 301 securities in its portfolio and an annual management fee of 0.40%, QUAL is designed for investors seeking long-term capital growth through quality equities while benefiting from diversification across various sectors and geographies.
Benchmark: MSCI World ex Australia Quality Index
Style: International Quality Equity
VANGUARD MSCI INDEX INTERNATIONAL SHARES (HEDGED) ETF
The Vanguard MSCI International Shares (Hedged) ETF (VGAD) provides investors with exposure to a diversified portfolio of international equities while mitigating currency risks through hedging. Launched on November 18, 2014, this ETF tracks the performance of the MSCI All Country World ex Australia Index, holding approximately 1,400 securities globally, with significant exposures to the United States, Japan, and the UK. The fund is priced in Australian dollars, ensuring that the return (both income and capital appreciation) remains relatively unaffected by currency fluctuations. With a management fee of 0.12%, VGAD is suitable for investors seeking broad-based international equity exposure without worrying about exchange rates impacting their returns.
Benchmark: MSCI All Country World ex Australia Index
Style: International Equity (Currency-Hedged)
LISTED PROPERTY & INFRASTRUCTURE
This portfolio invests in property and infrastructure assets, focusing on long-term income and growth potential. The property component includes investments in commercial, industrial, and residential real estate, while the infrastructure portion targets essential services such as utilities, transport, and energy. These sectors typically offer stable, predictable cash flows and provide diversification benefits due to their lower correlation with other asset classes like equities and bonds.
ISHARES WHOLESALE AUSTRALIAN LISTED PROPERTY INDEX FUND
The iShares Wholesale Australian Listed Property Index Fund aims to provide investors with performance that closely matches the S&P/ASX 300 A-REIT Total Return Index, before fees. This fund primarily invests in Australian Real Estate Investment Trusts (A-REITs), offering exposure to the property sector while focusing on capital growth and income generation. With a management fee designed to be competitive, it is suitable for investors looking for a diversified investment in the Australian real estate market.
Benchmark: S&P/ASX 300 A-REIT Total Return Index
Style: Real Estate Equity
FIXED INTEREST
The Fixed Interest portfolio includes investments in bonds and other debt instruments issued by governments, corporations, and other entities. This asset class is aimed at providing steady income while reducing overall portfolio risk. Fixed interest investments are typically more stable than equities, making them a key component for those looking to preserve capital and mitigate the volatility of more growth-oriented assets. They are particularly valuable in times of economic uncertainty, offering predictable returns and acting as a cushion against market fluctuations.
ISHARES CORE COMPOSITE BOND ETF
The iShares Core Composite Bond ETF provides comprehensive exposure to the Australian investment-grade bond market, including government, semi-government, supranational, and corporate securities across a range of maturities. Designed as a low-cost, passive solution, it aims to track the performance of a widely used benchmark that represents the total Australian fixed income universe. The fund offers reliable income, low volatility, and serves as a stabilising core component in diversified portfolios, particularly during periods of equity market stress.
Benchmark: Bloomberg AusBond Composite 0+ Yr Index
Style: Passive Australian investment-grade bonds
YARRA ENHANCED INCOME FUND
The Yarra Enhanced Income Fund (APIR: JBW0018AU) is an actively managed investment vehicle that seeks to provide higher returns than traditional cash management and fixed income investments over the medium to long term. The fund achieves this by investing in a diversified portfolio of high-yielding fixed income and hybrid securities, including floating rate notes, convertible/converting securities, corporate bonds, government and semi-government securities, structured/subordinated debt, and perpetual (non-call) step-up preference securities. It aims to deliver regular monthly distributions with relatively low capital volatility, modest capital growth, and some franking credits.
Benchmark: RBA Cash Rate
Style: Active management, focusing on high-yielding fixed income and hybrid securities
ALTERNATIVES
Alternatives encompass a wide range of investment strategies that differ from traditional assets like stocks and bonds. This portfolio includes private equity, hedge funds, and real assets such as infrastructure and commodities. The goal of alternatives is to enhance diversification and provide uncorrelated sources of return, helping to improve portfolio performance in different market conditions. These investments can reduce overall portfolio risk while potentially offering higher returns compared to traditional asset classes over the long term.
AAN INDEX GROWTH
Benchmark: None
Style: None