Capabilities

Funds SA offers a range of investment options, from cash to growth-oriented strategies and tailored strategies, to specifically meet our client’s investment objectives.

Our investment and operational approach enables us to cater for different tax environments, with investment options available for tax-exempt investors, tax-paying investors, and those investors who are able to take advantage of franking credit refunds.

There are currently 17 investment options, including tailored options for specific clients, distinguished by differing risk profiles, return targets, investment time horizons, and tax status.

These investment options invest into common asset class pools according to the determined strategic asset allocation for each option.

National Wine Centre of Australia

Funds SA investment option objectives

Funds SA investment option

Investment horizon

Target return

Risk of a negative return

Growth Asset Ranges*

Cash

0+ years

RBA Cash Rate

Less than 0.5 years in 20

0%

Capital Defensive

2+ years

CPI + 0.5%

Between 2 and 3 years in 20

10% - 40%

Conservative

4+ years

CPI + 1.5%

Between 2 and 3 years in 20

25% - 55%

Moderate

6+ years

CPI + 2.5%

Between 3 and 4 years in 20

40% - 70%

Socially Responsible

10+ years

CPI + 3.0%

Between 4 and 6 years in 20

55% - 85%

Balanced

10+ years

CPI + 3.5%

Between 4 and 6 years in 20

60% - 90%

High Growth

10+ years

CPI + 4.5%

Between 4 and 6 years in 20

70% - 100%

Defined Benefit

10+ years

CPI + 4.5%

Between 4 and 6 years in 20

70% - 100%

* ‘Growth’ assets include equities, certain types of property and growth alternatives. The remainder of the funds are invested in ‘Defensive’ assets, including fixed income, inflation linked bonds and cash.

Please note: The investment objectives state the aims of each investment option and are designed to help investors with their investment decisions. The objectives have been developed having regard for the long-term performance and characteristics of financial markets. There is a reasonable probability that the target returns for each investment option will be achieved over its stated time horizon based on the investment strategies employed. However, there is no guarantee the target returns will be met because financial markets are volatile and past performance is note a reliable indicator of future performance. Indeed, for investment options with exposure to growth assets, there is a material likelihood that returns may be negative in any particular year.

 

Coriole Vineyards

Our asset classes are the building blocks for any investment option or strategy we create.

Asset Class

Investments

Cash

Exposure to Australian short-term interest rate sensitive debt instruments, such as bank bills, that provide a high level of liquidity with minimal risk of capital loss.

Fixed Interest

Exposure to debt instruments providing principal repayment at maturity, and coupon payments at regular intervals until maturity. Includes investments in:

Short-Term Fixed Interest

Investments issued predominantly by investment grade non-government entities, no greater than five years in maturity.

Long-Term Fixed Interest

Investments in domestic and global issued debt, with an average duration of around 7-8 years. International assets are hedged to the Australian Dollar.

Inflation-Linked Securities

Exposure to debt securities providing a fixed rate of return in excess of an index related to the general level of prices in the economy, such as the Consumer Price Index or Average Weekly Earnings. International assets are hedged to the Australian Dollar.

Diversified Strategies Income

Investment opportunities with expected returns between that of bonds and equities, not readily classifiable within the other asset classes. Includes investments in:

Credit

Investments in debt securities that are issued by entities other than developed market governments.

Defensive Alternatives

Absolute return strategies being liquid alternative investments that can take both long and short positions across a wide range of financial market instruments to generate alpha. The strategy is designed as a liquid alternative to defensive assets such as bonds.

Growth Alternatives

Absolute return strategies being liquid alternative investments that can take both long and short positions across a wide range of financial market instruments to generate alpha. The strategy is designed as a liquid alternative to growth assets such as equities.

Property

Exposure to Australian listed and unlisted property.

Australian Equities

Equity exposure to companies listed or about to be listed on the Australian Securities Exchange.

International Equities

Equity exposure to companies listed on international stock exchanges. Includes exposure to emerging markets and small companies. A portion of the developed markets component is hedged to the Australian Dollar.

Diversified Strategies Growth

Investment opportunities with expected returns in excess of the long-term expectation for listed equities, not classifiable within the other asset classes. Includes investments in:

Core Infrastructure

Investment opportunities in assets or companies which display one or more of the following characteristics: provide an essential service that is important to the functioning of society at large or a specific community; have stable or predictable cash flow generation; have a long useful economic life or operate under long-term concessions; display monopoly-like characteristics or have high barriers to entry into their market; and provide an element of inflation protection, and

Private Markets

Investment opportunities with expected return in excess of long-term expectation for listed equities, not classifiable within the other asset classes.