The VIP Balanced portfolio aims to provide investors with a combination of capital growth and income over the medium to long term from investment within a diversified portfolio of growth assets (Australian shares, International shares, and property securities) and defensive assets (fixed interest and cash).
The portfolio is actively managed via our Strategic & Tactical Asset Allocation process whereby the Strategic Asset Allocation is based on the allocation split between growth and defensive assets – 60% / 40%.
The Tactical Asset Allocation process then considers whether specific assets within the allocation are providing sufficient reward for risk based on various factors ranging from asset specific factors to overarching macroeconomic factors. If these factors deem to present an unfavourable situation we will hold an underweight position in the asset ranging all the way to 0%.
The VIP Balanced portfolio is suitable for investors who:
- Require a balanced portfolio, diversified across all major asset classes.
- Seek capital growth over the medium to long term with a moderate level of income.
- Accept a moderate degree of volatility (loss) associated with a relatively higher exposure to Growth Assets.
- Are prepared to invest for the minimum investment timeframe of 5 to 7 years.
- Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and understand that capital preservation is not guaranteed.
The VIP Balanced portfolio aims to invest up to 60% allocation in Growth assets; however the portfolio can hold up to 100% allocation in Cash.
|Indicative number of holdings||30 – 60|
|Authorised Investments & Maximum Portfolio Exposure||ASX listed securities – 69%, Exchange Traded Funds (ETF’s) – 41%, Listed Investment Companies (LIC’s) – 29%, Managed funds – 83%, Bonds and Term deposits – 49%, Cash – 100%|
|Maximum exposure to a single investment||ASX Listed securities – 8%, ETFs and LICs – 15%, Managed Funds, Government and Semi Government Bonds and Term Deposits – 15%|
|Performance Benchmark||VIP Balanced Composite Index: 35% S&P/ASX100 Accumulation Index plus 15% MSCI World ex Australia Index (in AUD) plus 10% S&P/ASX 200 A-REIT Accumulation Index plus 30% UBS Australian Composite Bond Index plus 10% RBA Cash Rate|
Portfolio Performance & Portfolio Update
For information the current portfolio update and performance please download the current Portfolio Profile & Update document.