Managed. Managed Model Profiles Account. Sterling Managed Investments. 3 July 2017

Transcription

1 Managed Managed Model Profiles Account 3 July 2017 Sterling Managed Investments Sterling Conservative Model Sterling Balanced Model Sterling Growth Model Sterling Australian Equities Model Netwealth Investments Limited ABN AFSL Responsible Entity of the Netwealth Managed Account ARSN

2 This document has been prepared and issued by Netwealth Investments Limited (ABN , AFS Licence No ) ( Netwealth, we, us or our ) as the Responsible Entity of the Netwealth Managed Account ( Managed Account ) which is a registered managed investment scheme (ARSN ). This document describes the Sterling Managed Models provided by Sterling Managed Investments Pty Ltd (ABN , AFS Licence ) ( Sterling ) available in the Managed Account which are for clients of Futuro Financial Services Pty Ltd (ABN , AFS Licence No ) ( Futuro ) and Insight Investment Services Pty Ltd (ABN , AFS Licence No ) ( Insight ). Netwealth has appointed F Palmer & ME Palmer trading as Joseph Palmer & Sons (ABN , AFS Licence No ) ( Joseph Palmer & Sons ) as the Model Manager of the Sterling Managed Models. The information in this document is taken to be included in the Managed Account Product Disclosure Statement for Sterling Managed Investments ( 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 other 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 Futuro, Insight, Sterling and Joseph Palmer & Sons is based on information provided by Futuro, Insight, Sterling and Joseph Palmer & Sons and: Netwealth has not independently verified the information provided by Futuro, Insight, Sterling or Joseph Palmer & Sons and, to the extent permitted by law, takes no responsibility for it; none of Futuro, Insight, Sterling or Joseph Palmer & Sons or any of their 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 Futuro, Insight, Sterling or Joseph Palmer & Sons; and Futuro, Insight, Sterling and Joseph Palmer & Sons and each of their 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 (they have) expressly given its (their) consent. Netwealth may choose not to implement the advice provided by Joseph Palmer & Sons in relation to the investment portfolio for the Sterling 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 Sterling Managed Models and Netwealth may adjust the investment portfolios of the Sterling Managed Models in its absolute discretion. An investment in the Managed Account is not a deposit with or other liability of Futuro, Insight, Sterling or Joseph Palmer & Sons or any of their related bodies corporate, and is subject to investment risk including possible delays in repayment and loss of income or principal invested. None of Futuro, Insight, Sterling or Joseph Palmer & Sons or any of their 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. Futuro, Insight, Sterling and Joseph Palmer & Sons have given and not withdrawn their consent to be named in this document in the form and context in which they are named. 2 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

3 Contact details Netwealth Head office Level 8 52 Collins Street Melbourne VIC 3000 Postal address PO Box 336 South Melbourne VIC 3205 Freecall Phone Fax contact@netwealth.com.au Web netwealth.com.au Sterling Head office Level 3 75 Astor Terrace Spring Hill QLD 4000 Postal address GPO Box 942 Brisbane QLD 4001 Phone Fax Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

4 About the Model Manager Joseph Palmer founded Joseph Palmer & Sons in It remains a family run partnership and Malcolm Palmer, great grandson of the founder, is the current managing partner. The firm has its principal office in Sydney as well as an office in Melbourne. There are about 20 on staff between the two locations. Over the past fifteen years, Joseph Palmer & Sons has transitioned from its former activity as a stockbroker to the status of boutique investment manager with a focus on addressing the needs of clients across Australia. The firm provides its investment expertise to a range of clients: from family firms requiring inputs for their self-managed superannuation funds to financial planners seeking portfolio management services for their own clients. Model Manager investment philosophy and approach Joseph Palmer & Sons is an active investment manager. It has created several core portfolios to satisfy a spectrum of client needs. The current range of core investment portfolios includes: diversified portfolios and individual subsector sleeves including international equities, property securities and Australian shares. These portfolios form the basis of the firm s portfolio services which range from corporate investment mandates to managed discretionary accounts. Underpinning the selection of securities are two fundamental resources: in-depth research (provided by both internal and external resources) plus a proprietary relative value analysis ( RVA ). The RVA process enables the relative attractiveness of individual securities to be assessed using a thorough evaluation of such parameters as: management quality, earnings estimates, dividend estimates, relative price to earnings, price to earnings growth and enterprise value to earnings. Recommendations are made by the firm s Portfolio Management Team on both security selection and portfolio construction. The firm s independent Investment Committee ( IC ), governed by a Charter, meets regularly to apply robust checks and balances on investment decisions, compliance, adherence to mandates, and fidelity to the firm s investment philosophy. IC meetings include participation of independent analysts from respected research houses as well as guest speakers. 4 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

5 List of managed funds The Managed Models referred to in this document may invest in managed funds. The managed funds that may currently be held in the Managed Models are listed below. Before you invest using a Managed Model that can invest in managed funds, you must be given and read the current product disclosure statement for any managed funds that may be included in the Managed Model. To use the Managed Account, you must first apply to open a Netwealth platform account. If you have appointed your adviser as your adviser representative in relation to your platform account, your adviser representative offers to act as your agent to receive on your behalf any documents relating to any of the assets acquired or held in your managed account and provide this information to you. By completing the Application, you accept your adviser representative s offer and appoint your adviser representative as your agent authorised to receive such documents. Netwealth agrees to ensure that your adviser representative (in their capacity as your agent) receives the current product disclosure statement for any managed funds included in your managed account before those managed funds are acquired for you. Your financial adviser should give you the current product disclosure statements for those managed funds. These product disclosure statements are also available on our website, by selecting Compare Funds on your platform account. Asset Class Managed fund name APIR code International shares MFS Global Equity Trust MIA0001AU Fixed interest Realm High Income Fund - Wholesale OMF0009AU Cash Netcash 1 NET0034AU 1 The Netcash Product Disclosure Statement is available in the Managed Account Forms section of our website. 5 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

6 Sterling Conservative Model Managed Model Profile Model code MACC Model Manager Investment objective and timeframe Joseph Palmer & Sons To outperform the asset weighted composite benchmark over rolling 5 year periods. Benchmark Asset class Benchmark Weight Australian shares S&P/ASX200 Total Return Index 20 Global shares MSCI World Ex Australia Net Return AUD Index 5 Australian property S&P/ASX200 AREIT Total Return Index 5 Australian fixed interest Bloomberg AusBond Composite Bond 0+ Total Return Index 60 Cash RBA Target Cash Rate 10 Investment strategy and asset ranges This is an actively managed diversified portfolio 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. Over the longer term the exposure to growth assets will be on average 30%. However, this is an active portfolio and the dynamic asset process may result in changes that fluctuate within the allowable ranges depending on market conditions. The model invests a minimum of 42% in defensive assets. Asset class Minimum Neutral Maximum Australian shares Global shares Australian property Australian fixed interest Cash Investment universe The model invests in: ASX listed securities (including income securities and Exchange Traded Funds); and unlisted managed investment schemes ( managed funds ). The model will normally hold 10 to 25 assets. A list of the managed funds that may currently be held in this model is available on page 5. Investment management fee Model Fee 0.275% p.a % p.a. Minimum investment amount $100,000 6 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

7 Sterling Balanced Model Managed Model Profile Model code MACC Model Manager Investment objective and timeframe Joseph Palmer & Sons To outperform the asset weighted composite benchmark over rolling 6 year periods. Benchmark Asset class Benchmark Weight Australian shares S&P/ASX200 Total Return Index 45 Global shares MSCI World Ex Australia Net Return AUD Index 10 Australian property S&P/ASX200 AREIT Total Return Index 5 Australian fixed interest Bloomberg AusBond Composite Bond 0+ Total Return Index 35 Cash RBA Target Cash Rate 5 Investment strategy and asset ranges This is an actively managed diversified portfolio 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. Over the longer term the exposure to growth assets will be on average 60%. However, this is an active portfolio and the dynamic asset process may result in changes that fluctuate within the allowable ranges depending on market conditions. The model invests a minimum of 22% in defensive assets. Asset class Minimum Neutral Maximum Australian shares Global shares Australian property Australian fixed interest Cash Investment universe The model invests in: ASX listed securities (including ordinary shares forming part of the S&P/ASX200 Index, Real Estate Investment Trusts, income securities and Exchange Traded Funds); and unlisted managed investment schemes ( managed funds ). The model will normally hold 25 to 40 assets. A list of the managed funds that may currently be held in this model is available on page 5. Investment management fee Model Fee 0.275% p.a % p.a. Minimum investment amount $100,000 7 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

8 Sterling Growth Model Managed Model Profile Model code MACC Model Manager Investment objective and timeframe Joseph Palmer & Sons To outperform the asset weighted composite benchmark over rolling 7 year periods. Benchmark Asset class Benchmark Weight Australian shares S&P/ASX200 Total Return Index 60 Global shares MSCI World Ex Australia Net Return AUD Index 15 Australian property S&P/ASX200 AREIT Total Return Index 5 Australian fixed interest Bloomberg AusBond Composite Bond 0+ Total Return Index 15 Cash RBA Target Cash Rate 5 Investment strategy and asset ranges This is an actively managed diversified portfolio 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. Over the longer term the exposure to growth assets will be on average 80%. However, this is an active portfolio and the dynamic asset process may result in changes that fluctuate within the allowable ranges depending on market conditions. The model invests a minimum of 2% in defensive assets. Asset class Minimum Neutral Maximum Australian shares Global shares Australian property Australian fixed interest Cash Investment universe The model invests in: ASX listed securities (including ordinary shares forming part of the S&P/ASX200 Index, Real Estate Investment Trusts, income securities and Exchange Traded Funds); and unlisted managed investment schemes ( managed funds ). The model will normally hold 25 to 40 assets. A list of the managed funds that may currently be held in this model is available on page 5. Investment management fee Model Fee 0.275% p.a % p.a. Minimum investment amount $100,000 8 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017

9 Sterling Australian Equities Model Managed Model Profile Model code MACC Model Manager Investment objective and timeframe Joseph Palmer & Sons To outperform the S&P/ASX200 Total Return Index after fees over rolling 7 year periods from a portfolio of Australian shares. Investment strategy and asset ranges The strategy aims to provide growing income and some capital growth from a diversified portfolio of securities from Australia s largest 200 ASX listed companies by market capitalisation. The manager undertakes detailed stock and valuation analysis on all securities in the universe with the aim being to build a portfolio that offers the best return with a strong understanding of broader market risk. Asset class Minimum Neutral Maximum Australian shares Cash Investment universe The model invests in: ASX listed securities (including ordinary shares forming part of the S&P/ASX200 Index and Real Estate Investment Trusts. The model will normally hold 10 to 28 assets. Investment management fee Model Fee 0.275% p.a % p.a. Minimum investment amount $25,000 9 Managed Account Sterling Managed Investments Managed Model Profiles 3 July 2017