Global Balanced

Evidence Based Investing

scroll

Portfolio Characteristics

Inception Date – October 2013
Currency – AUD
Dividend Yield – 1.94%
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 International Global Strategies are widely diversified investing in tax efficient 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 dollar.

The fixed income part is diversified over Australian government bonds and corporate bonds and will adjust the average duration over the course of an economic cycle.

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
Portfolio0.39%5.20%20.42%0.07%11.01%7.84%8.16%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio9.98%9.22%1.08%

Allocation

America 58.93%

Greater Europe 17.18%

Developed Asia 13.63%

Emerging Asia 9.46%

Central/Latin America 0.79%

Sector

Financials

13.30%

Industrials

9.20%

Consumer Discretinoary

10.88%

Real Estate

2.24%

Consumer Staples

9.40%

Materials

4.64%

Healthcare

16.06%

Utilities

2.68%

Technology

20.13%

Energy

2.11%

Telecommunication

9.36%

Sector

Financials

13.30%

Industrials

9.20%

Consumer Discretinoary

10.88%

Real Estate

2.24%

Consumer Staples

9.40%

Materials

4.64%

Healthcare

16.06%

Utilities

2.68%

Technology

20.13%

Energy

2.11%

Telecommunication

9.36%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

13.30%

Industrials

9.20%

Consumer Discretionary

10.88%

Real Estate

2.24%

Consumer Staples

9.40%

Materials

4.64%

Healthcare

16.06%

Utilites

2.68%

Technology

20.13%

Energy

2.11%

Communication

9.36%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

13.30%

Industrials

9.20%

Consumer Discretionary

10.88%

Real Estate

2.24%

Consumer Staples

9.40%

Materials

4.64%

Healthcare

16.06%

Utilites

2.68%

Technology

20.13%

Energy

2.11%

Communication

9.36%

Top Holdings

StockWeight

Vanguard MSCI Index International Shares ETF32.18%

Vanguard MSCI Index International Shares Hedged ETF15.27%

iShares CORE Composite Bond ETF14.03%

Vanguard International Credit Securities Index Hedged ETF13.14%

Vaneck Vectors MSCI World ex Australia Quality ETF9.51%

iShares MSCI Emerging Markets ETF/AU8.12%

Vaneck Vectors China New Economy ETF2.89%

Vanguard MSCI Australian Large Companies ETF2.26%

iShares Global Healthcare ETF/AU1.88%

Start a conversation

Whether you are looking for a second opinion, have more questions, or are ready to become a client, we’re here to help.