ishares Core Model Portfolios

Transcription

1 ishares Core Model Portfolios 30 June 2017

2 ishares Core Model Portfolios Introducing ishares Core ishares Core is a series of five low-cost, high quality funds designed to provide a simple way to construct diversified and robust portfolios that can be customised to meet your investment needs. ishares Core ETFs provide broad market exposure at less than 1/6th of the average cost of Australian managed funds¹ providing the essential building blocks for exposure across markets and asset classes: Australian equities, international equities (hedged and unhedged), Australian fixed income and international fixed income (hedged). ishares Core Model Portfolios Every investor is unique. This knowledge underpins our aim to give you the flexible tools to create portfolios tailored to your needs. With this in mind, we have constructed the ishares Core Model Portfolios, using ishares Core ETFs to provide you with a simple, low-cost way to build a strong foundation for your portfolio. Five model portfolios have been developed to match the risk categories; Conservative, Moderate, Balanced, Growth and Aggressive. These portfolios are based on the average portfolio allocations across asset classes by Australian managed funds in these categories. They are meant to be illustrative only and demonstrate a range of investment outcomes. They are not intended to be investment advice. Conservative Moderate Balanced Growth Aggressive Whether you want to build from scratch or complement an existing client portfolio, ishares Core helps you deliver better portfolio outcomes with the backing of BlackRock, the world s trusted ETF leader. The following four ishares Core ETFs have been used as building blocks in the ishares Core Model Portfolios and they provide broad and low cost exposure to distinct asset classes. Name ishares Core S&P/ASX 200 ETF ASX Ticker IOZ Asset class Australian equity Management fee² 0.15% ishares Core MSCI World All Cap ETF IWLD International equity 0.16% ishares Core Composite Bond ETF IAF Australian fixed income 0.20% ishares Core Global Corporate Bond (AUD Hedged) ETF IHCB International fixed income 0.26% 1 Source: Morningstar, Bloomberg, as of 31 March Comparison is between the average management fee (or indirect cost ratio) of the ishares Core ETF range (0.19%) and the average indirect cost ratio of the Morningstar Australian Investment Trust universe (1.42% excluding outliers to provide a more conservative measure). The Morningstar Australian Investment Trust universe is comprised of over 2,800 open-ended funds, including Unit Trusts, Superannuation Funds, Allocated Pensions and Term Allocated Pensions. Management fee / indirect cost ratio is quoted as a percentage of annual average net assets. 2 Management fee as disclosed in the fund s latest product disclosure statement, as at 30 June Subject to change. 2 ishares DIVERSIFIED MODEL PORTFOLIOS JUNE 2017

3 ishares Core Model Portfolios Profile ishares Core ETFs Composite Management Fee^ Annualised Index Total Return* Conservative ishares Core Composite Bond ETF (IAF) 50.2% ishares Core Global Corporate Bond 17.8% (AUD Hedged) ETF (IHCB) ishares Core S&P/ASX 200 ETF (IOZ) 8.2% ishares Core MSCI World All Cap ETF (IWLD) 6.8% Australian Cash 17.0% ishares Core Composite Bond ETF (IAF) 41.3% ishares Core S&P/ASX 200 ETF (IOZ) 16.5% ishares Core Global Corporate Bond 14.7% Moderate (AUD Hedged) ETF (IHCB) ishares Core MSCI World 13.5% All Cap ETF (IWLD) Australian Cash 14.0% ishares Core Composite Bond ETF (IAF) 29.5% ishares Core S&P/ASX 200 ETF (IOZ) 27.5% ishares Core MSCI World 22.5% Balanced All Cap ETF (IWLD) ishares Core Global Corporate Bond (AUD Hedged) ETF (IHCB) 10.5% Australian Cash 10.0% ^ Composite Management Fee is as of 30 June 2017 and subject to change. Composite Management Fee is the weighted average Management Expense Ratio (MER) of the underlying individual ishares ETFs management fees included in the model portfolios. * Annualised index total return from 31 January 2006 through to 30 June The model portfolios historical returns have been calculated using the respective underlying total return indices. These are S&P/ASX 200 Accumulation Index, MSCI World IMI, Bloomberg AusBond Composite Index, Barclays Global Aggregate Corporate Bond Index (AUD Hedged) and Bloomberg AusBond Bank Bill Index (representing cash). As the performance history relates to the underlying indices and not the funds themselves, performance data does not take into account transaction costs, ongoing management costs, taxation and tracking error. The performance between the model portfolios and stated benchmarks will vary. Past performance is not a reliable indicator of future performance. The model portfolios are rebalanced semi-annually and transaction costs are incurred when buying or selling units of an ishares fund on the ASX. Brokerage commissions are also incurred if such trades are done through a broker. These costs have been ignored for the purposes of this example. The model portfolios are provided for general information only and do not form a recommendation to acquire, hold or dispose of any investment. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Past performance is not indicative of future performance. An ishares fund is not actively managed. Sources: BlackRock, Morningstar, MPI Stylus Pro, as at 30 June ishares DIVERSIFIED MODEL PORTFOLIOS JUNE

4 ishares Core Model Portfolios Profile ishares Core ETFs Composite Management Fee^ Annualised Index Total Return* ishares Core S&P/ASX 200 ETF (IOZ) 38.5% ishares Core MSCI World 31.5% All Cap ETF (IWLD) Growth ishares Core Composite Bond ETF (IAF) 17.7% ishares Core Global Corporate Bond (AUD Hedged) ETF (IHCB) 6.3% Australian Cash 6.0% ishares Core S&P/ASX 200 ETF (IOZ) 46.7% ishares Core MSCI 38.3% All Cap World ETF (IWLD) Aggressive ishares Core Composite Bond ETF (IAF) 9.0% ishares Core Global Corporate Bond (AUD Hedged) ETF (IHCB) 3.0% Australian Cash 3.0% ^ Composite Management Fee is as of 30 June 2017 and subject to change. Composite Management Fee is the weighted average Management Expense Ratio (MER) of the underlying individual ishares ETFs management fees included in the model portfolios. * Annualised index total return from 31 January 2006 through to 30 June The model portfolios historical returns have been calculated using the respective underlying total return indices. These are S&P/ASX 200 Accumulation Index, MSCI World IMI, Bloomberg AusBond Composite Index, Barclays Global Aggregate Corporate Bond Index (AUD Hedged) and Bloomberg AusBond Bank Bill Index (representing cash). As the performance history relates to the underlying indices and not the funds themselves, performance data does not take into account transaction costs, ongoing management costs, taxation and tracking error. The performance between the model portfolios and stated benchmarks will vary. Past performance is not a reliable indicator of future performance. The model portfolios are rebalanced semi-annually and transaction costs are incurred when buying or selling units of an ishares fund on the ASX. Brokerage commissions are also incurred if such trades are done through a broker. These costs have been ignored for the purposes of this example. The model portfolios are provided for general information only and do not form a recommendation to acquire, hold or dispose of any investment. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Past performance is not indicative of future performance. An ishares fund is not actively managed. Sources: BlackRock, Morningstar, MPI Stylus Pro, as at 30 June ishares DIVERSIFIED MODEL PORTFOLIOS JUNE 2017

5 ishares Core Model Portfolios Performance Conservative (%) Moderate (%) Balanced (%) Growth (%) Aggressive (%) 1 month months months year years Annualised Index Total Return* Cumulative growth of 100 AUD Growth of 100 AUD Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Conservative Moderate Balanced Growth Aggressive * Annualised index total return from 31 January 2006 through to 30 June The model portfolios historical returns have been calculated using the respective underlying total return indices. These are S&P/ASX 200 Accumulation Index, MSCI World IMI, Bloomberg AusBond Composite Index, Barclays Global Aggregate Corporate Bond Index (AUD Hedged) and Bloomberg AusBond Bank Bill Index (representing cash). As the performance history relates to the underlying indices and not the funds themselves, performance data does not take into account transaction costs, ongoing management costs, taxation and tracking error. The performance between the model portfolios and stated benchmarks will vary. Past performance is not a reliable indicator of future performance. The model portfolios are rebalanced semi-annually and transaction costs are incurred when buying or selling units of an ishares fund on the ASX. Brokerage commissions are also incurred if such trades are done through a broker. These costs have been ignored for the purposes of this example. The model portfolios are provided for general information only and do not form a recommendation to acquire, hold or dispose of any investment. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Past performance is not indicative of future performance. An ishares fund is not actively managed. Sources: BlackRock, Morningstar, MPI Stylus Pro, as at 30 June ishares DIVERSIFIED MODEL PORTFOLIOS JUNE

6 ishares Core Model Portfolios Performance Annualised index total return* 6.2% 6.1 Balanced Growth Moderate Agressive Return 6.0 Conservative % 2% 4% 6% 8% 10% 12% Risk * Annualised index total return from 31 January 2006 to 30 June The model portfolios historical returns have been calculated using the respective underlying total return indices. These are S&P/ASX 200 Accumulation Index, MSCI World IMI, Bloomberg AusBond Composite Index, Barclays Global Aggregate Corporate Bond Index (AUD Hedged) and Bloomberg AusBond Bank Bill Index (representing cash). As the performance history relates to the underlying indices and not the funds themselves, performance data does not take into account transaction costs, ongoing management costs, taxation and tracking error. The performance between the model portfolios and stated benchmarks will vary. Past performance is not a reliable indicator of future performance. The model portfolios are rebalanced semi-annually and transaction costs are incurred when buying or selling units of an ishares fund on the ASX. Brokerage commissions are also incurred if such trades are done through a broker. These costs have been ignored for the purposes of this example. The model portfolios are provided for general information only and do not form a recommendation to acquire, hold or dispose of any investment. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided. Past performance is not indicative of future performance. An ishares fund is not actively managed. Sources: BlackRock, Morningstar, MPI Stylus Pro, as at 30 June ishares DIVERSIFIED MODEL PORTFOLIOS JUNE 2017

7 Getting Started ishares ETFs trade on the Australian Securities Exchange (ASX). Investors can buy or sell ishares ETFs like they buy or sell shares by contacting their stockbroker or financial adviser, or by trading through an online broker. As with any listed share, customary brokerage commissions may apply. ishares DIVERSIFIED MODEL PORTFOLIOS JUNE

8 Want to know more? blackrock.com/au/ishares/model-portfolios PERFORMANCE DATA Performance figures represent the past performance of a hypothetical investment in the model portfolios over a specified period in time. The performance of the hypothetical investment is based on the actual past performance of the model portfolios over the specified period. Past performance is not a reliable indicator of future performance. Current performance may be higher or lower than the performance shown. Performance is calculated after fund management fees and expenses, and assumes reinvestment of distributions. IMPORTANT INFORMATION Issued by BlackRock Investment Management (Australia) Limited ABN , AFSL (BIMAL). This material provides general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should therefore assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. This material is not a securities recommendation or an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction. BIMAL is the responsible entity and issuer of units in the Australian domiciled managed investment schemes referred to in this material, including the Australian domiciled ishares ETFs. BIMAL is the local agent and intermediary for non-australian domiciled ishares ETFs referred to in this material that are quoted on ASX and are issued by ishares, Inc. ARBN formed in Maryland, USA; and ishares Trust ARBN organised in Delaware, USA (International ishares ETFs). BlackRock Fund Advisors (BFA) serves as an advisor to the International ishares ETFs, which are registered with the United States Securities and Exchange Commission under the Investment Company Act of BFA is a subsidiary of BlackRock Institutional Trust Company, N.A. (BTC). BTC is a wholly-owned subsidiary of BlackRock, Inc.. Any potential investor should consider the latest product disclosure statement, prospectus or other offer document (Offer Documents) before deciding whether to acquire, or continue to hold, an investment in any BlackRock fund. Offer Documents can be obtained by contacting the BIMAL Client Services Centre on In some instances Offer Documents are also available on the BIMAL website at An ishares ETF is not sponsored, endorsed, issued, sold or promoted by the provider of the index which a particular ishares ETF seeks to track. No index provider makes any representation regarding the advisability of investing in the ishares ETFs. Further information on the index providers can be found in the BIMAL website terms and conditions at An ishares ETF is not actively managed. You cannot invest directly in an index. BIMAL, its officers, employees and agents believe that the information in this material and the sources on which the information is based (which may be sourced from third parties) are correct as at the date of publication. While every care has been taken in the preparation of this material, no warranty of accuracy or reliability is given and no responsibility for this information is accepted by BIMAL, its officers, employees or agents. Except where contrary to law, BIMAL excludes all liability for this information. Any investment is subject to investment risk, including delays on the payment of withdrawal proceeds and the loss of income or the principal invested. While any forecasts, estimates and opinions in this material are made on a reasonable basis, actual future results and operations may differ materially from the forecasts, estimates and opinions set out in this material. No guarantee as to the repayment of capital or the performance of any product or rate of return referred to in this material is made by BIMAL or any entity in the BlackRock group of companies. No part of this material may be reproduced or distributed in any manner without the prior written permission of BIMAL BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ishares and the stylised i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners