INVESTMENT OVERVIEW
- Growth/Defensive
- Min. Timeframe
- Min. Investment
- Benchmark
- Inception Date
- 65/35
- 5 Years
- $10,000
- AAN Index Core Custom Composite
- 20 January 2017
Investment Objective
The Index Core portfolio’s investment objective is to outperform CPI by 2.5% p.a. before fees over rolling 5-year periods.
INVESTMENT APPROACH
The Index Core portfolio is an actively managed diversified portfolio which obtains exposure using a blend of passive ETFs listed on the ASX and index based managed funds. The portfolio is constructed with a strategic growth exposure of 65% and defensive exposure of 35%. The portfolio will generally be reweighted to its strategic weights quarterly
INVESTOR PROFILE
Investors who:
- seek a diversified portfolio with a slight emphasis on growth assets with exposure obtained via a blend of passive ETFs and/or managed fund based investment options;
- are prepared to accept a degree of volatility in their portfolio to allow for achieving the investment objective; and
- can invest for a period of at least 5 years.
ASSET ALLOCATION
PORTFOLIO HOLDINGS
| Holdings | |
|---|---|
|
DOMESTIC EQUITY |
30.8% |
|
BetaShares Australia 200 ETF |
30.8% |
|
INTERNATIONAL EQUITY |
30.8% |
|
iShares Hedged International Eq Idx Fd S |
7.8% |
|
Vanguard All-World ex-US Shares Index ETF |
7.0% |
|
Vanguard US Total Market Shares Index ETF
|
16.0% |
|
LISTED PROPERTY & INFRASTRUCTURE
|
3.7% |
|
iShares Wholesale Australian Listed Property Index Fund |
3.7% |
|
FIXED INTEREST |
34.7%
|
|
iShares Australian Bond Index Fund
|
17.4% |
|
Vanguard Global Aggregate Bond Index (Hedged) ETF |
17.4% |
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.
BETASHARES AUSTRALIA 200 ETF
The BetaShares Australia 200 ETF provides investors with exposure to the performance of the 200 largest companies listed on the Australian Securities Exchange, based on free float-adjusted market capitalization. Launched in May 2018, this ETF employs a full replication strategy and features a low management fee of just 0.04% per annum , making it one of the most cost-effective options for diversified exposure to Australian equities.
Benchmark: S&P/ASX 200 Index
Style: Large-cap Equity
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.
ISHARES HEDGED INTERNATIONAL EQ IDX FD S
The iShares Hedged International Equity Index Fund aims to provide investors with returns that closely match the performance of the MSCI World ex-Australia Net Total Return Index, hedged in Australian dollars. This fund primarily invests in a diversified portfolio of large and mid-cap international equities while employing a passive currency hedging strategy to mitigate the impact of currency fluctuations on returns. With a focus on long-term capital growth, it is suitable for investors looking for exposure to global markets without the risks associated with currency volatility.
Benchmark: MSCI World ex-Australia Net Total Return Index (hedged in AUD)
Style: International Equity
VANGUARD ALL-WORLD EX-US SHARES INDEX ETF
The Vanguard All-World ex-US Shares Index ETF provides broad exposure to global equities outside the United States, covering both developed and emerging markets. It tracks a market-cap-weighted index that includes large- and mid-cap companies across more than 40 countries, offering investors diversified access to global growth opportunities beyond the U.S. The fund’s passive structure ensures low costs, while its broad reach makes it a valuable complement to U.S.-focused or domestic equity holdings in a global portfolio.
Benchmark: FTSE All-World ex US Index
Style: Passive international equities across developed and emerging markets
VANGUARD US TOTAL MARKET SHARES INDEX ETF
The Vanguard US Total Market Shares Index ETF provides broad and diversified exposure to the entire U.S. equity market, including large-, mid-, small-, and micro-cap stocks across all sectors. The fund tracks a comprehensive benchmark designed to capture the performance of nearly all listed U.S. companies, offering investors low-cost access to the long-term growth potential of the U.S. economy. Its passive structure, combined with deep market coverage, makes it a foundational building block for global equity allocations, particularly for those seeking U.S. market representation in a single ETF.
Benchmark: CRSP US Total Market Index
Style: Passive total market U.S. equities across all capitalisations
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 AUSTRALIAN BOND INDEX FUND
The iShares Australian Bond Index Fund provides diversified exposure to the Australian investment-grade bond market, including Commonwealth and state government bonds, supranational issues, and high-quality corporate debt. By passively tracking a broad market benchmark, the fund seeks to match the performance of the Australian fixed income universe while maintaining low costs and high transparency. It offers consistent income, low credit risk, and relatively low volatility, making it a strong foundation for the defensive allocation within a portfolio. Its focus on high-quality domestic bonds also provides a hedge against equity market downturns and acts as a source of capital preservation during periods of market stress.
Benchmark: Bloomberg AusBond Composite 0+ Yr Index
Style: Passive Australian investment-grade bonds
VANGUARD GLOBAL AGGREGATE BOND INDEX (HEDGED) ETF
The Vanguard Global Aggregate Bond Index (Hedged) ETF provides comprehensive exposure to global investment-grade fixed income markets, including sovereign, quasi-sovereign, and corporate issuers. It passively tracks a broad benchmark and employs AUD hedging to mitigate currency risk, making it suitable for Australian investors seeking stable, defensive returns. The fund is designed to offer diversification across regions, sectors, and maturities, and serves as a core fixed income allocation with low credit and interest rate risk.
Benchmark: Bloomberg Global Aggregate Float Adjusted TR
Hedged AUD
Style: Passive global investment-grade bonds with currency hedge