ishares Core Model Portfolios

Transcription

1 ishares Core Model Portfolios 2016

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 funds, 1 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). 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. 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 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 ASX Ticker Asset Class Management Fee 2 ishares Core S&P/ASX 200 ETF IOZ Australian Equity 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 ( 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 28 April Subject to change. ishares CORE MODEL PORTFOLIO REBALANCING ishares Core ETFs provide a simple, quick and cost effective way to rebalance the exposures in your portfolio. The ishares Core Model Portfolios are updated semi-annually, letting you rebalance your clients exposures to ensure that they stay consistently aligned to the original strategic asset allocation and investment objectives. [2] i SHARES CORE MODEL PORTFOLIOS APRIL 2016

3 Conservative Core Model Portfolio Conservative Core Model Portfolio Indices TR Composite Conservative Index TR 1 month months months year years years Annualised Index Total Return * ishares Core Composite Bond ETF (IAF) 50% ishares Core Global Corporate Bond ( Hedged) ETF (IHCB) 18% ishares Core S&P/ASX 200 ETF (IOZ) 8% ishares Core MSCI World All Cap ETF (IWLD) 7% Australian Cash 17% Conservative Core Model Composite Conservative Index Sources: BlackRock, Composite Conservative Index, Bloomberg, MPI Stylus Pro, 31 December conservative allocation. between the model portfolio and stated benchmark will vary. Currency Std Dev Since Tracking Error Since Weight CASH 17.00% 5 ¾ 15 MAY ¼ 21 APRIL ½ 21 APRIL ¼ 15 MARCH ¾ 21 APRIL ¼ 21 APRIL ¾ 15 JULY ½ 15 APRIL ¾ 21 APRIL % 5.07% 3.79% Composite Conservative Index 2.05% 0.14% from the stated benchmark for this example. 1.86% 1.85% 1.81% 1.76% 1.75% 1.73% 1.71% 1.70% 1.68% Australia 58.31% United States 6.04% Germany 3.72% UK 1.08% Canada 0.89% Japan 0.84% Netherlands 0.66% Switzerland 0.52% France 0.47% Norway 0.41% i SHARES CORE MODEL PORTFOLIOS APRIL 2016 [3]

4 Moderate Core Model Portfolio moderate allocation. between the model portfolio and stated benchmark will vary. Currency Std Dev Since Tracking Error Since CASH 14.00% COMMONWEALTH BANK 2.16% WESTPAC BANKING WBC AU 5 ¾ 15 MAY 2021 ACGB 3 ¼ 21 APRIL ½ 21 APRIL ¼ 15 MARCH ¾ 21 APRIL ¼ 21 APRIL ¾ 15 JULY % 5.19% 3.87% Composite Moderate Index 3.45% 0.19% from the stated benchmark for this example. 1.65% 1.47% 1.47% 1.43% 1.39% 1.39% 1.37% 1.35% Australia 58.24% United States 9.82% Germany 3.23% UK 1.68% Japan 1.46% Canada 0.96% Switzerland 0.71% France 0.66% Netherlands 0.62% Norway 0.34% Moderate Core Model Portfolio Indices TR ishares Core Composite Bond ETF (IAF) 41% ishares Core S&P/ASX 200 ETF (IOZ) 17% ishares Core Global Corporate Bond ( Hedged) ETF (IHCB) 15% ishares Core MSCI World All Cap ETF (IWLD) 13% Composite Moderate Index TR Australian Cash 14% 1 month months months year years years Annualised Index Total Return * Moderate Core Model Composite Moderate Index Sources: BlackRock, Composite Moderate Index, Bloomberg, MPI Stylus Pro, 31 December [4] i SHARES CORE MODEL PORTFOLIOS APRIL 2016

5 Balanced Core Model Portfolio Balanced Core Model Portfolio TR MSCI ACWI Index 1 month months months year years years Annualised Index Total Return * ishares Core Composite Bond ETF (IAF) 30% ishares Core S&P/ASX 200 ETF (IOZ) 27% ishares Core MSCI World All Cap ETF (IWLD) 22% ishares Core Global Corporate Bond ( Hedged) ETF (IHCB) 11% Australian Cash 10% Balanced Core Model Composite Balanced Index Sources: BlackRock, Composite Balanced Index, Bloomberg, MPI Stylus Pro, 31 December balanced allocation. between the model portfolio and stated benchmark will vary. Currency Std Dev Tracking Error from the stated benchmark for this example. CASH 10.00% COMMONWEALTH BANK OF AUSTRALIA 3.27% WESTPAC BANKING 2.51% ANZ BANK 1.82% NAB BANK 1.79% TELSTRA CORP 1.52% BHP BILLITON LTD 1.29% CSL LTD 1.10% WESFARMERS LTD 1.05% 5 ¾ 15 MAY % 5.13% 3.83% Composite Balanced Index 5.68% 0.29% 1.03% Australia 56.91% USA 15.12% Germany 2.72% UK 2.46% Japan 2.33% Canada 1.08% Switzerland 0.99% France 0.94% Netherlands 0.60% Switzerland 0.38% i SHARES CORE MODEL PORTFOLIOS APRIL 2016 [5]

6 Growth Core Model Portfolio growth allocation. between the model portfolio and stated benchmark will vary. Currency Std Dev Since Tracking Error Since CASH 6.00% COMMONWEALTH BANK OF AUSTRALIA 0.16% 5.16% 3.85% Composite Growth Index 8.02% 0.35% from the stated Morningstar benchmark for this example. 4.10% Growth Core Model Portfolio ishares Core S&P/ASX 200 ETF (IOZ) 39% ishares Core MSCI World All Cap ETF (IWLD) 31% ishares Core Composite Bond ETF (IAF) 18% ishares Core Global Corporate Bond ( Hedged) ETF (IHCB) 6% Composite Growth Index Australian Cash 6% 1 month months months year years years Annualised Monthly Index Return * WESTPAC BANKING CORP AUSTRALIA AND NEW ZEALAND BANKING NATIONAL AUSTRALIA BANK 3.20% 2.30% 2.20% TELSTRA CORP 1.% BHP BILLITON 1.60% CSL LTD 1.40% WESFARMERS LTD 1.30% Australia 56.29% USA 19.74% UK 3.17% Japan 3.10% Germany 2.17% Switzerland 1.22% France 1.17% Canada 1.17% Netherlands 0.57% Sweden 0.45% Growth Core Model Composite Growth Index Sources: BlackRock, Composite Growth Index, Bloomberg, MPI Stylus Pro, 31 December [6] i SHARES CORE MODEL PORTFOLIOS APRIL 2016

7 Aggressive Core Model Portfolio Aggressive Core Model Portfolio Composite Aggressive Index 1 month months months year years years Annualised Index Total Return * ishares Core S&P/ASX 200 ETF (IOZ) 47% ishares Core MSCI All Cap World ETF (IWLD) 38% ishares Core Composite Bond ETF (IAF) 9% ishares Core Global Corporate Bond ( Hedged) ETF (IHCB) 3% Australian Cash 3% 70 Agressive Core Model Composite Agressive Index Sources: BlackRock, Composite Aggressive Index, Bloomberg, MPI Stylus Pro, 31 December aggressive allocation. between the model portfolio and stated benchmark will vary. Currency Std Dev Since Tracking Error Since from the stated Morningstar benchmark for this example. COMMONWEALTH BANK OF AUSTRALIA WESTPAC BANKING CORPORATION 5.23% 4.01% CASH 3.00% ANZ BANK 2.91% NATIONAL AUSTRALIA BANK 2.85% TELSTRA CORP 2.42% BHP BILLITON 2.05% CSL LTD 1.75% WESFARMERS LTD 1.67% WOOLWORTHS LTD 1.11% 0.16% 5.14% 3.84% Composite Aggressive Index 9.79% 0.43% Australia 55.32% USA 23.22% UK 3.69% Japan 3.67% Germany 1.82% Switzerland 1.40% France 1.36% Canada 1.25% Netherlands 0.55% Sweden 0.50% i SHARES CORE MODEL PORTFOLIOS APRIL 2016 [7]

8 Want to know more? ishares.australia@blackrock.com blackrock.com/au/ishares IMPORTANT INFORMATION This material is issued by BlackRock Investment Management (Australia) Limited ABN , AFSL (BlackRock Australia) for the exclusive use of the recipient, who warrants by receipt of this material that they are a wholesale client as defined under the Corporations Act 2001 (Cth). This material is intended only for wholesale clients and must not be relied or acted upon by retail clients. This material provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. Any potential investor should consider the latest product disclosure statement or prospectus in deciding whether to acquire, or to continue to hold, an investment in any BlackRock fund. This material is not a securities recommendation nor is it an offer or solicitation with respect to the purchase or sale of any securities in any jurisdiction. BlackRock Australia is the responsible entity and issuer of units in the Australian domiciled ishares ETFs referred to in this material. BlackRock Australia is the local agent and intermediary for non-australian domiciled ishares ETFs referred to in this material that 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.. 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 on BlackRock Australia s website terms and conditions. BlackRock Australia, 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 BlackRock Australia, its officers, employees or agents. Except where contrary to law, BlackRock Australia 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. BlackRock Australia does not guarantee the repayment of capital or the performance of any product or rate of return referred to in this material. Past performance is not a reliable indicator of future performance. No part of this material may be reproduced or distributed in any manner without the prior written permission of BlackRock Australia BlackRock, Inc. All Rights reserved. BLACKROCK, ishares and the stylized 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. AUS ish