Managed Account. Ralton. Managed Model Profiles. 16 June 2016

Transcription

1 Managed Account Managed Model Profiles 16 June 2016 Ralton Ralton Australian Shares Model Ralton High Yield Australian Shares Model Ralton Smaller Companies Model

2 This document has been prepared and issued by Netwealth Investments Limited (ABN , AFS Licence No ) ( Netwealth, we or us ) as the Responsible Entity of the Netwealth Managed Account ( Managed Account ) which is a registered managed investment scheme (ARSN ). This document describes the Ralton Managed Models for which Netwealth has appointed Ralton Asset Management Limited (ABN , AFS Licence No ) ( Ralton ) as the Model Manager. The information in this document is taken to be included in the Managed Account Product Disclosure Statement ( PDS ) issued by Netwealth. If you received this document electronically, we will provide a paper copy free upon request. If obtaining an electronic copy of this document, please ensure you have a complete copy of it, and all of the relevant parts of the PDS. You should consider all of the parts of the PDS that are relevant to you, including any supplementary PDS, before making an investment decision. The information in this document about Ralton is based on information provided by Ralton and: Netwealth has not independently verified the information provided by Ralton and, to the extent permitted by law, takes no responsibility for it; neither Ralton nor any of its related bodies corporate has authorised or caused the issue of this document or been involved in the preparation of it other than providing information about Ralton; and Ralton and each of its related bodies corporate expressly disclaim and take no responsibility for any part of this document or the PDS other than in respect of any part of this document to which it has expressly given its consent. Netwealth may choose not to implement the advice provided by Ralton in relation to the investment portfolio for the Ralton Managed Models where Netwealth believes that doing so may breach relevant law or result in an outcome that is not consistent with the investment mandate of the Ralton Managed Models and Netwealth may adjust the investment portfolios of the Ralton Managed Models in its absolute discretion. An investment in the Managed Account is not a deposit with or other liability of Ralton or any of its related bodies corporate, and is subject to investment risk including possible delays in repayment and loss of income or principal invested. Neither Ralton nor any of its related bodies corporate guarantees the performance of the Managed Account, the repayment of capital from the Managed Account or any particular rate of return. The offer or invitation to which this document relates is only available to persons receiving a copy of this document, the PDS and any applicable supplementary PDS within Australia. Ralton has given and not withdrawn its consent to be named in this document in the form and context in which it is named. Netwealth contact details Head office Level 8/52 Collins Street MELBOURNE VIC 3000 Freecall (within Australia) Phone Fax Postal address PO Box 336 SOUTH MELBOURNE VIC Website contact@netwealth.com.au Managed Model Profiles Ralton 2

3 ABOUT THE MODEL MANAGER About the Model Manager Ralton is a pioneer in Australia's managed accounts industry and since 2005 has been offering its investment capabilities exclusively through individually managed accounts ( IMAs ) or separately managed accounts ( SMAs ). Ralton currently manages portfolios on behalf of a wide range of investors, including charitable trusts, corporations, superannuation funds, family trusts and individuals. Ralton specialises in the management of high quality Australian share portfolios, and its disciplined, value-oriented investment approach has delivered strong and tax-efficient returns since inception. Ralton s investment team is well resourced and consists of experienced professionals with diverse backgrounds, all sharing a talent and passion for investing. This unique blend of experience and ability promotes insightful analysis and debate and brings a high degree of rigour to Ralton's fundamental research driven investment process. Managed Model Profiles Ralton 3

4 RALTON AUSTRALIAN SHARES MODEL Managed Model Profile Ralton Australian Shares Model Model code MACC Model Manager Ralton Asset Management Asset class Allocation range Investment objective To provide investors with long-term capital growth and some tax effective income from a concentrated portfolio of Australian shares. The portfolio aims to maximise total investment returns from its universe of stocks over periods of five years or longer, while at the same time seeking to minimise the risk of investment capital loss. Type of investor The Ralton Australian Shares Model is designed for investors who: seek long term capital growth from a concentrated portfolio of shares, with some taxeffective income; seek consistent above market returns; and have a long term investment horizon of at least five years and accept the risk of equity markets. Investment strategy The Ralton Australian Shares Model invests in a selection of stocks within its investment universe which offer attractive value relative to the market. By doing this Ralton can maximise the opportunity over time to deliver the return target for the portfolio. In constructing the portfolio Ralton takes account of their views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating environment for the companies Ralton invests in adds an additional risk overlay. In doing all of this Ralton focuses on companies with quality business models as they believe these are best positioned to preserve capital through the cycle. Australian shares 90 to 98% Direct shares listed on ASX and included in the S&P/ASX300 Index or those amongst the top 300 by size Cash 2 to 10% Netwealth platform cash account The model will normally hold 20 to 35 stocks listed on Australian securities exchanges. From time to time assets held in the model may no longer fall within the investment universe described above. For example, this could occur due to a fall in share prices reducing the market capitalisation of a security. In these circumstances the asset may be retained in the model and the Model Manager will decide how best to manage the asset in the interests of investors. Investment management fee 0.75% p.a. The model will normally hold 7 to 30 different unit trusts and exchange traded funds. A list of the managed funds that may currently be held in this model is available on page XX. Managed Model Profiles Ralton 4

5 RALTON HIGH YIELD AUSTRALIAN SHARES MODEL Managed Model Profile Ralton High Yield Australian Shares Model Model code MACC Model Manager Ralton Asset Management Asset class Allocation range Investment objective To provide investors with a consistent, tax-efficient and growing cash dividend yield, and long-term capital growth. The portfolio aims to deliver a return superior to that of the market over periods of five years and an above market yield. Type of investor This Ralton High Yield Australian Shares Model is designed for investors who: seek an above market, tax-efficient cash dividend yield and long term capital growth; expect consistent above market returns; and have a long term investment horizon of at least five years and accept the risk of equity markets. Investment strategy The Ralton High Yield Australian Shares Model invests in a selection of stocks within its investment universe which offer attractive value relative to the market. By doing this Ralton can maximise the opportunity over time to deliver the return target for the portfolio. In constructing the portfolio Ralton takes account of their views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating environment for the companies Ralton invests in adds an additional risk overlay. In doing all of this Ralton focuses on companies with quality business models as they believe these are best positioned to preserve capital through the cycle. Australian shares 90 to 98% Direct shares listed on ASX and included in the S&P/ASX300 Index or those among the largest 300 by market capitalisation. Cash 2 to 10% Netwealth platform cash account The model will normally hold 20 to 35 stocks listed on Australian securities exchanges. From time to time assets held in the model may no longer fall within the investment universe described above. For example, this could occur due to a fall in share prices reducing the market capitalisation of a security. In these circumstances the asset may be retained in the model and the Model Manager will decide how best to manage the asset in the interests of investors. Investment management fee 0.75% p.a. Managed Model Profiles Ralton 5

6 RALTON SMALLER COMPANIES MODEL Managed Model Profile Ralton Smaller Companies Model Model code MACC Model Manager Ralton Asset Management Investment objective To provide investors with long-term capital growth and some tax effective income from a concentrated portfolio of smaller capitalisation Australian shares. The portfolio aims to deliver a return superior to that of the market over periods of five years or longer while at the same time seeking to minimise the risk of investment capital loss. Type of investor The Ralton Smaller Companies Model is designed for investors who: seek long term capital growth from a concentrated portfolio of smaller companies, with some tax-effective income; expect consistent above market returns; and have a long term investment horizon of at least five years and accept the risk of equity markets. Investment strategy The Ralton Smaller Companies Model invests in a selection of stocks within its investment universe which offer attractive value relative to the market. By doing this Ralton can maximise the opportunity over time to deliver the return target for the portfolio. In constructing the portfolio Ralton takes account of their views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating environment for the companies Ralton invests in adds an additional risk overlay. In doing all of this Ralton focuses on companies with quality business models as they believe these are best positioned to preserve capital through the cycle. Asset class Allocation range Australian shares 85 to 98% Direct shares listed on ASX that are not included in the S&P/ASX50 Index Cash 2 to 15% Netwealth platform cash account The model will normally hold 25 to 40 stocks listed on Australian securities exchanges. From time to time assets held in the model may no longer fall within the investment universe described above. For example, this could occur due to a change in the composition of the S&P/ASX50 Index. In these circumstances the asset may be retained in the model and the Model Manager will decide how best to manage the asset in the interests of investors. Investment management fee 0.85% p.a. You should consider that this model may hold up to 40 assets. As a guide, we would expect that an allocation of less than $40,000 to this model may result in holdings in your managed account that differ significantly from those of the model. Managed Model Profiles Ralton 6