STERLING MANAGED INVESTMENTS

Transcription

1 STERLING MANAGED INVESTMENTS INVESTMENT MENU DATED 3 APRIL 2018 THIS INVESTMENT MENU IS ISSUED BY PRAEMIUM AUSTRALIA LIMITED (ABN , AFSL ). THE INFORMATION IN THIS DOCUMENT FORMS PART OF THE FOLLOWING PRODUCT DISCLOSURE STATEMENT: STERLING MANAGED INVESTMENTS PRODUCT DISCLOSURE STATEMENT (PDS) DATED 3 APRIL 2018.

2 Sterling Managed Investments CONTENTS Single Asset Model Portfolios 3 Model Portfolio Managers and Model profiles 4 Sterling Conservative Portfolio 5 Sterling Balanced Portfolio 6 Sterling Growth Portfolio 7 Sterling Australian Equities Portfolio 8 Sterling 100% Growth Portfolio 9 Sterling/Clime Conservative / Pension Portfolio 10 Sterling/Clime Balanced Portfolio 11 Sterling/Clime Balanced Income / Pension Portfolio 12 Sterling/Clime Growth Portfolio 13 Sterling/Clime Australian Equities Portfolio 14 Sterling/Clime Transition Portfolio 15 Contact details for enquiries about the Sterling Managed Investments General number for enquiries: enquiries: support@praemium.com.au The name and contact details of the Responsible Entity are: Praemium Australia Limited PO Box 322 Collins Street West MELBOURNE VIC support@praemium.com.au Website: 2

3 Single Asset Model Portfolios Managed Funds Model Code* Model Portfolio Name APIR Code YY0103 AllianceBernstein Managed Volatility Eq ACM0006AU YY0113 Fidelity Australian Equities FID0008AU YY0117 Franklin Templeton Multisector Bond W FRT0011AU YY0120 Grant Samuel Epoch Gbl Eq Shldr Yld Uhgd GSF0002AU YY0124 Investors Mutual Equity Income IML0005AU KP0001 Kapstream Wholesale Absolute Ret Inc Fd HOW0052AU MG0101 Magellan Global MGE0001AU YY0131 Magellan Infrastructure (Unhedged) MGE0002AU YY0133 MFS Global Equity Trust MIA0001AU PP0101 Perpetual W Share Plus L/S PER0072AU PC0001 PIMCO Diversified Fixed Interest W ETL0016AU PL0101 Platinum International Fund PLA0002AU YY0141 Plato Australian Shares Income WHT0039AU YY0175 SPW Global High Quality Fund ETL8834AU YY0149 T. Rowe Price Dynamic Global Bond ETL0398AU YY0152 UBS Diversified Fixed Income SBC0007AU YY0159 Zurich Investments Aus Property Secs ZUR0064AU * These Model Portfolios invest in funds which have a fee disclosed in the issuer s PDS. For more information please visit the issuer s website which can be accessed by clicking on the Model Portfolio Names above. 3

4 Model Portfolio Managers and Model profiles Sterling Managed Investments Pty Ltd Sterling Managed Investments was one of the first Managed Accounts available for advisors to recommend to their clients. Sterling is part of the Futuro Financial Services group of companies, a leading independent Australian Financial Planning Licensee (with over 70 Authorised Representatives, responsible for $1.5B in FUA). Sterling is designed by independent financial planners to meet the specific needs of their clients. Sterling model portfolios are actively managed by a recognised industry investment professional whose mandate is to invest directly via shares and other listed securities wherever possible and if not then via Managed Funds to deliver consistent, replicable returns. Sterling has the flexibility to quickly replace the investment manager if they consistently underperform. Clime Investment Management Pty Ltd Clime is an independent Australian fund manager focused on a value-based investment process. Established in 1996, Clime Investment Management is a publicly listed funds management group (ASX:CIW). Clime s objective is to utilise its value-based investment process in a disciplined and consistent manner, and execute its obligations to investors with efficiency and integrity. This is managed by an experienced team of investment professionals, Clime is dedicated to providing strong riskadjusted investment outcomes. 4

5 Model Portfolio Profile: SR0001 Sterling Conservative Portfolio Investment objective: To provide income with some capital growth through exposure to a diversified portfolio of investments over the suggested investment timeframe. 3-5 years Sterling Managed Investments Pty Ltd 20% of the S&P/ ASX 200 Accumulation Index 5% of the MSCI World ex Australia Index (in $A) 60% of the Bloomberg Ausbond Composite 0+ Yr 10% RBA Cash Rate seek relatively stable, regular income from low volatility assets, but with some exposure to the share market; are focussed on capital preservation and are prepared to forego the potential of higher returns for lower volatility and the preservation of capital; and No fixed minimum Indirect Cost Ratio (approx) 0.19% p.a. accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed. This is an actively managed diversified portfolio of securities across both income orientated asset classes, such as cash and fixed interest securities and growth asset classes such as Australian equities, property and global securities. Whilst over the longer term the exposure to growth assets will be on average 30%. As this is an active portfolio, this may fluctuate within the allowable ranges depending on market conditions. Minimum Maximum Australian shares 0 30 International shares 0 10 Property securities 0 10 Fixed Income/Debt Securities Cash

6 Model Portfolio Profile: SR0002 Sterling Balanced Portfolio Investment objective: To provide income and capital growth through exposure to a diversified portfolio of investments over the suggested investment timeframe. 3-5 years Sterling Managed Investments Pty Ltd require a diversified balanced portfolio; are seeking moderate growth over the investment timeframe with a moderate level of income; accept a moderate degree of volatility associated with a relatively higher exposure to growth assets;and accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed. This is an actively managed diversified portfolio of securities across both income orientated asset classes, such as cash and fixed interest securities and growth asset classes such as Australian equities, property and global securities. Whilst over the longer term the exposure to growth assets will be on average 70%. As this is an active portfolio, this may fluctuate within the allowable ranges depending on market conditions. 45% of the S&P/ ASX 200 Accumulation Index 10% of the MSCI World ex Australia Index (in $A) 35% of the Bloomberg Ausbond Composite 0+ Yr 5% RBA Cash Rate No fixed minimum Indirect Cost Ratio (approx) 0.18% p.a. Minimum Maximum Australian shares 0 60 International shares 0 20 Property securities 0 10 Fixed Income/Debt Securities Cash

7 Model Portfolio Profile: SR0003 Sterling Growth Portfolio Investment objective: To provide capital growth over the suggested investment timeframe years Sterling Managed Investments Pty Ltd seek a relatively high level of capital growth on their investment; seek a modest level of income; are willing to accept a high level of short- medium term capital volatility as a trade-off for long-term capital growth; and accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed. This is an actively managed diversified portfolio of securities across both income orientated asset classes, such as cash and fixed interest securities and growth asset classes such as Australian equities, property and global securities. Whilst over the longer term the exposure to growth assets will be on average 85%. As this is an active portfolio, this may fluctuate within the allowable ranges depending on market conditions. 60% of the S&P/ ASX 200 Accumulation Index 15% of the MSCI World ex Australia Index (in $A) 15% of the Bloomberg Ausbond Composite 0+ Yr 5% RBA Cash Rate No fixed minimum Indirect Cost Ratio (approx) 0.18% p.a. Minimum Maximum Australian shares International shares 0 30 Property securities 0 10 Fixed Income/Debt Securities 0 40 Cash

8 Model Portfolio Profile: SR0004 Sterling Australian Equities Portfolio Investment objective: To provide investors with long term capital growth and some tax effective income from investment in a portfolio of Australian shares over the suggested investment timeframe years Sterling Managed Investments Pty Ltd are seeking long term capital growth and some income from a portfolio of Australian securities; are prepared to accept the risk of price fluctuations. This is an actively managed diversified portfolio of Australian equities securities. Some cash forms the portfolio to pay fees and to receive dividends for further investment. Whilst over the longer term the exposure to growth assets will be on average 98%. As this is an active portfolio, this may fluctuate within the allowable ranges depending on market conditions. S&P/ ASX 200 Accumulation Index No fixed minimum Indirect Cost Ratio (approx) 0.04% p.a. Minimum Maximum Australian shares Cash

9 Model Portfolio Profile: SR0005 Sterling 100% Growth Portfolio Investment objective: To provide capital growth over the suggested investment timeframe years Sterling Managed Investments Pty Ltd seek a relatively high level of capital growth on their investment without the constraint of holding defensive interest bearing orientated assets in the portfolio which may detract from the ultimate growth in the portfolio; seek a modest level of income; are willing to accept a high level of short- medium term capital volatility, without the protection of more defensive interest bearing securities in the portfolio, as a trade-off for long-term capital growth; accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed. This is an actively managed diversified portfolio of securities across growth asset classes such as Australian equities, property and global securities. Whilst over the longer term the exposure to growth assets will be on average 95%, as this is an active portfolio this level may fluctuate within the allowable ranges depending on market conditions. 60% of the S&P/ ASX 200 Accumulation Index 30% of the MSCI World ex Australia Index (in $A) 5% RBA Cash Rate No fixed minimum Indirect Cost Ratio (approx) 0.12% p.a. Minimum Maximum Australian shares International shares 0 50 Property securities 0 10 Cash

10 Model Portfolio Profile: SR0010 Sterling/Clime Conservative / Pension Portfolio Investment objective: To provide income with some capital growth through exposure to a diversified portfolio of investments. 3-5 years Clime Asset Management Pty Limited Seek relatively stable, regular income from low volatility assets, but with some exposure to the share market; Are focussed on capital preservation and are prepared to forego the potential of higher returns for lower volatility and the preservation of capital; Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed; and Understand that withdrawals from this portfolio may be delayed due to the fixed terms of maturity for some fixed interest investments The Investment Committee have defined the investment universe of each of the investment options and established the investment guidelines appropriate for the particular investment strategies. The investment process is multi-faceted. It focuses primarily on intensive bottom-up appropriately compensated risk-reward relationship. This is bottom-up research is supplemented by top-down macroeconomic views. Risk management and capital preservation are key themes underlying the portfolio construction. The aim is to reduce asset specific risk and produce consistent and replicable returns. Sterling Conservative Benchmark which is a combination of: 20% of the S&P/ ASX 200 Accumulation Index 5% of the MSCI World ex Australia Index (in $A) 60% of the Bloomberg Ausbond 0+ Year Index 10% RBA Cash Rate $100,000 Indirect Cost Ratio (approx) 0.26% p.a. Minimum Target Maximum Australian equities International equities Property securities Australian fixed interest/ debt securities Alternatives Cash

11 Model Portfolio Profile: SR0011 Sterling/Clime Balanced Portfolio Investment objective: To provide income and capital growth through exposure to a diversified portfolio of investments years Clime Asset Management Pty Limited Require a diversified balanced portfolio; Are seeking moderate growth over the investment timeframe with a moderate level of income; Accept a moderate degree of volatility associated with a relatively higher exposure to growth assets; Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed; and Understand that withdrawals from this Portfolio may be delayed due to the fixed terms of maturity for some fixed interest investments The Investment Committee have defined the investment universe of each of the investment options and established the investment guidelines appropriate for the particular investment strategies. The investment process is multi-faceted. It focuses primarily on intensive bottom-up research to identify quality investments that are attractively priced and offer an appropriately compensated risk-reward relationship. This is bottom-up research is supplemented by top-down macroeconomic views. Sterling Balanced Benchmark which is a combination of: 45% of the S&P/ ASX 200 Accumulation Index 10% of the MSCI World ex Australia Index (in $A) 35% of the Bloomberg Ausbond 0+ Year Index 5% RBA Cash Rate $100,000 Indirect Cost Ratio (approx) 0.28% p.a. Minimum Target Maximum Australian equities International equities Property securities Australian fixed interest/debt securities Alternatives Cash Risk management and capital preservation are key themes underlying the portfolio construction. The aim is to reduce asset specific risk and produce consistent and replicable returns. 11

12 Model Portfolio Profile: SR0012 Sterling/Clime Balanced Income / Pension Portfolio Investment objective: To provide income with some capital growth through exposure to a diversified portfolio of investments years Clime Asset Management Pty Limited Require a diversified balanced portfolio, with the share market component focused on companies paying solid dividends (including franking); Sterling Conservative Benchmark which is a combination of: 20% of the S&P/ ASX 200 Accumulation Index 5% of the MSCI World ex Australia Index (in $A) 60% of the Bloomberg Ausbond 0+ Year Index 10% RBA Cash Rate $100,000 Are seeking moderate growth over the investment timeframe and a higher level of income than that achieved in the Sterling Balanced Portfolio; Accept a moderate degree of volatility associated with a relatively higher exposure to growth assets; Indirect Cost Ratio (approx) 0.17% p.a. Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed; and Understand that withdrawals from this Portfolio may be delayed due to the fixed terms of maturity for some fixed interest investment. The Investment Committee have defined the investment universe of each of the investment options and established the investment guidelines appropriate for the particular investment strategies. The investment process is multi-faceted. It focuses primarily on intensive bottom-up research to identify quality investments that are attractively priced and offer an appropriately compensated risk-reward relationship. This is bottom-up research is supplemented by top-down macroeconomic views. Minimum Target Maximum Australian equities International equities Property securities Australian fixed interest/ debt securities Alternatives Cash Risk management and capital preservation are key themes underlying the portfolio construction. The aim is to reduce asset specific risk and produce consistent and replicable returns. 12

13 Model Portfolio Profile: SR0013 Sterling/Clime Growth Portfolio Investment objective: To provide capital growth and some income over the investment timeframe. 5-7 years Clime Asset Management Pty Limited Seek a relatively high level of capital growth on their investment; Seek a modest level of income; Are willing to accept a high level of short-medium term capital volatility as a trade-off for long-term capital growth; Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed; and Understand that withdrawals from this Portfolio may be delayed due to the fixed terms of maturity for some fixed interest investments. The Investment Committee have defined the investment universe of each of the investment options and established the investment guidelines appropriate for the particular investment strategies. The investment process is multi-faceted. It focuses primarily on intensive bottom-up research to identify quality investments that are attractively priced and offer an appropriately compensated risk-reward relationship. This is bottom-up research is supplemented by top-down macroeconomic views. Sterling Conservative Benchmark which is a combination of: 60% of the S&P/ ASX 200 Accumulation Index 15% of the MSCI World ex Australia Index (in $A) 15% of the Bloomberg Ausbond 0+ Year Index 5% RBA Cash Rate $100,000 Indirect Cost Ratio (approx) 0.37% p.a. Minimum Target Maximum Australian equities International equities Property securities Australian fixed interest/ debt securities Alternatives Cash Risk management and capital preservation are key themes underlying the portfolio construction. The aim is to reduce asset specific risk and produce consistent and replicable returns. 13

14 Model Portfolio Profile: SR0014 Sterling/Clime Australian Equities Portfolio Investment objective: To provide investors with market average income yields and capital growth over the long term from investment in a portfolio of Australian shares. 5-7 years Clime Asset Management Pty Limited Are seeking long term capital growth and market average income yields, primarily from franked dividends, via a portfolio of Australian securities Are prepared to accept the risk of price fluctuations The Investment Committee have defined the investment universe of each of the investment options and established the investment guidelines appropriate for the particular investment strategies. The investment process is multi-faceted. It focuses primarily on intensive bottom-up research to identify quality investments that are attractively priced and offer an appropriately compensated risk-reward relationship. This is bottom-up research is supplemented by top-down macroeconomic views. S&P/ASX 200 Accumulation Index (Assessed over the investment strategy minimum timeframe) 15 30, typically 15 to 20 securities will be held across large (ASX50), mid (ASX200 ex 50) and small (ex ASX200) cap subportfolios $100,000 Indirect Cost Ratio (approx) 0.00% p.a. Minimum Target Maximum Australian equities Cash Risk management and capital preservation are key themes underlying the portfolio construction. The aim is to reduce asset specific risk and produce consistent and replicable returns. 14

15 Model Portfolio Profile: SR0015 Sterling/Clime Transition Portfolio Investment objective: To provide income and capital growth through exposure to a diversified portfolio of investments years Clime Asset Management Pty Limited Seek a range of investments that meets particular preferences and requirements, Are comfortable with high levels of volatility potentially associated with some investments in the Portfolio, Wish to transition their investments into other Sterling Portfolios over time Understand that the investments will not be as actively managed as investments in other Sterling Portfolios. Have specific requirements not able to be met under other Sterling portfolios. The Investment Committee have defined the investment universe of each of the investment options and established the investment guidelines appropriate for the particular investment strategies. The investment process is multi-faceted. It focuses primarily on intensive bottom-up research to identify quality investments that are attractively priced and offer an appropriately compensated risk-reward relationship. This is bottom-up research is supplemented by top-down macroeconomic views. Due to the potentially diverse range of underlying investments and transition time frames a performance benchmark is not applicable (Assessed over the investment strategy minimum timeframe) Due to the potentially diverse range of underlying investments and transition time frames an indicative number of holdings is not applicable. No fixed minimum Indirect Cost Ratio (approx) 0.50% p.a. Minimum Maximum Australian equities International equities Property securities Australian fixed interest/debt securities Alternatives Cash Risk management and capital preservation are key themes underlying the portfolio construction. The aim is to reduce asset specific risk and produce consistent and replicable returns. 15