Domestic Balanced

Evidence Based Investing

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Portfolio Characteristics

Inception Date – January 2014
Currency – AUD
Dividend Yield – 2.44%
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.

This strategy is suitable for long-term investors with a balanced risk profile that want to capture global market returns.

Portfolio Performance

YTD 2020 2019 2018 2017 2016 2015
Portfolio0.36%3.61%20.24%-0.61%9.43%7.33%5.63%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio7.63%8.77%0.87%

Allocation

America 37.81%

Greater Europe 12.29%

Developed Asia 48.43%

Emerging Asia 1.47%

Latin America 0.01%

Sector

Financials

15.61%

Industrials

8.03%

Consumer Discretinoary

11.47%

Real Estate

8.88%

Consumer Staples

9.46%

Materials

10.42%

Healthcare

9.46%

Utilities

3.17%

Technology

14.49%

Energy

3.03%

Telecommunication

5.99%

Sector

Financials

15.61%

Industrials

8.03%

Consumer Discretinoary

11.47%

Real Estate

8.88%

Consumer Staples

9.46%

Materials

10.42%

Healthcare

9.46%

Utilities

3.17%

Technology

14.49%

Energy

3.03%

Telecommunication

5.99%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

15.61%

Industrials

8.03%

Consumer Discretionary

11.47%

Real Estate

8.88%

Consumer Staples

9.46%

Materials

10.42%

Healthcare

9.46%

Utilites

3.17%

Technology

14.49%

Energy

3.03%

Communication

5.99%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

15.61%

Industrials

8.03%

Consumer Discretionary

11.47%

Real Estate

8.88%

Consumer Staples

9.46%

Materials

10.42%

Healthcare

9.46%

Utilites

3.17%

Technology

14.49%

Energy

3.03%

Communication

5.99%

Top Holdings

StockWeight

iShares Core Composite Bond ETF25.79%

Vanguard Australian Shares Index ETF14.76%

iShares Global 100 ETF/AU12.06%

iShares S&P/ASX Dividend Opportunities ETF11.70%

Vanguard Total Stock Market ETF11.59%

iShares MSCI EAFE ETF/AU9.32%

iShares Core S&P Mid-Cap ETF/Australia7.31%

SPDR S&P/ASX 200 Listed Property Fund3.85%

iShares Asia 50 ETF/AU3.08%

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