Domestic Aggressive

Evidence Based Investing

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Portfolio Characteristics

Inception Date – September 2013
Currency – AUD
Dividend Yield – 2.61%
Daily Liquidity

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Strategy Description

Our Domestic Global Strategy is optimized for Australian investors widely diversified investing in ETFs and market trackers, with the target to generate at least global capital market returns. Sustainable investment criteria play a large role in the composition of the portfolio. The portfolio is widely diversified with small tilts to certain investment factors or thematic market trends.

The international portfolio does not take large bets in regional allocation compared to the MSCI All Country World Index. It does hedge part of the foreign currency exposure back to Australian Dollars.

The strategy is 100% equity focused and is suitable for long-term investors with an aggressive risk profile that want to capture global market returns.

Portfolio Performance

YTD 2020 2019 2018 2017 2016 2015
Portfolio0.46%2.83%24.14%-3.77%12.71%8.93%6.25%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio8.53%12.36%0.69%

Allocation

America 20.72%

Greater Europe 14.28%

Developed Asia 62.43%

Emerging Asia 2.57%

Sector

Financials

16.69%

Industrials

7.47%

Consumer Discretinoary

10.76%

Real Estate

11.75%

Consumer Staples

9.14%

Materials

12.73%

Healthcare

8.36%

Utilities

3.17%

Technology

11.11%

Energy

2.97%

Telecommunication

5.85%

Sector

Financials

16.69%

Industrials

7.47%

Consumer Discretinoary

10.76%

Real Estate

11.75%

Consumer Staples

9.14%

Materials

12.73%

Healthcare

8.36%

Utilities

3.17%

Technology

11.11%

Energy

2.97%

Telecommunication

5.85%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

16.69%

Industrials

7.47%

Consumer Discretionary

10.76%

Real Estate

11.75%

Consumer Staples

9.14%

Materials

12.73%

Healthcare

8.36%

Utilites

3.17%

Technology

11.11%

Energy

2.97%

Communication

5.85%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

16.69%

Industrials

7.47%

Consumer Discretionary

10.76%

Real Estate

11.75%

Consumer Staples

9.14%

Materials

12.73%

Healthcare

8.36%

Utilites

3.17%

Technology

11.11%

Energy

2.97%

Communication

5.85%

Top Holdings

StockWeight

Vanguard Australian Shares Index ETF25.69%

iShares S&P/ASX Dividend Opportunities ETF16.38%

Vanguard Total Stock Market ETF10.10%

iShares MSCI EAFE ETF/AU8.65%

iShares Asia 50 ETF/AU7.46%

SPDR S&P/ASX 200 Listed Property Fund7.40%

iShares Europe ETF/AU6.52%

iShares Global 100 ETF/AU6.11%

iShares S&P/ASX Small Ordinaries ETF5.81%

iShares Core S&P Mid-Cap ETF/Australia5.38%

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