Capabilities
Funds SA offers a range of multi-sector funds, from cash to growth-oriented strategies and tailored strategies, to specific meet our client’s investment objectives.
Our investment and operational approach enables us to cater for different tax environments, with funds available for tax-exempt investors, tax-paying investors and those investors who are able to take advantage of franking credit refunds.
There are currently 18 multi-sector funds, including bespoke options for specific clients, distinguished by differing risk profiles, return targets, investment time horizons and tax status.
These multi-sector funds invest into common asset class pools according to the determined strategic asset allocation for each fund.
Funds SA Multi-Sector Fund Objectives
|
Funds SA multi-sector funds |
Investment horizon |
Return target |
Risk of a negative return |
Growth Asset Ranges* |
|
Cash |
0+ years |
Maintain the value of capital |
Less than 0.5 years in 20 |
0% |
|
Capital Defensive |
2+ years |
CPI + 1.5% |
between 0.5 and 1 year in 20 |
10% - 40% |
|
Conservative |
4+ years |
CPI + 2% |
Between 2 and 3 years in 20 |
25% - 55% |
|
Moderate |
6+ years |
CPI + 3% |
Between 3 and 4 years in 20 |
40% - 70% |
|
Balanced |
10+ years |
CPI + 3.5% |
Between 4 and 6 years in 20 |
60% - 90% |
|
Growth |
10+ years |
CPI + 4% |
Between 4 and 6 years in 20 |
70% - 100% |
|
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 what each fund aims to achieve 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 no guarantee, however, that the objectives will be met. This is because financial markets are volatile and future returns may vary from returns earned in the past. Indeed, for funds with exposure to growth assets, there is a material likelihood that returns may be negative in any particular year.
Our asset classes are the building blocks for any investment fund or strategy we create.
|
Asset Class |
Investments |
|
Cash
|
Exposure to Australian short term interest rate sensitive debt instruments, such as bank bills, which provide a high level of liquidity with minimal risk of capital loss.
|
|
Fixed Interest
|
Short Term Fixed Interest Exposure to Australian nominal debt instruments providing principal repayment at maturity and coupon payments at regular intervals until maturity.
Long Term Fixed Interest Exposure to Australian and global debt instruments providing principal repayment at maturity and coupon payments at regular intervals until maturity. 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 investment grade credit, emerging market debt, high yield securities and absolute return strategies. International assets are hedged to the Australian dollar.
|
|
Property
|
Exposure to Australian property markets.
|
|
Australian Equities
|
Equity exposure to companies listed or on the Australian Securities Exchange.
|
|
International Equities
|
Equity exposure to companies listed on international stock exchanges. Includes exposure to emerging markets and small companies. 50% 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 private equity, opportunistic property, infrastructure and other opportunities. International assets are hedged to the Australian dollar.
|