The VIP Conservative portfolio aims to provide investors with a reliable income stream with the potential for moderate capital growth over the medium to long term from investment within a diversified portfolio heavily weighted to defensive assets (fixed interest and cash) and holding some growth assets (Australian shares, International shares, and property securities).
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 – 30% / 70%.
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 Conservative portfolio is suitable for investors who:
- Seek relatively stable, regular income from low volatility assets, but with some exposure to the share market.
- Are focussed on capital protection and are prepared to forego the potential of higher returns for short-term stability and the preservation of capital.
- Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and understand that capital preservation is not guaranteed.
- Understand that the portfolio will be invested in the fixed interest securities which have a term to maturity. This could possibly cause a delay on any request to withdraw from the portfolio.
- Are prepared to invest for the minimum investment timeframe of between 5 and 7 years, and understand that capital preservation is not guaranteed.
The VIP Conservative portfolio aims to invest up to 30% 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 – 49%, Exchange Traded Funds (ETF’s) – 22%, Listed Investment Companies (LIC’s) – 10%, Managed funds – 88%, Bonds and Term deposits – 78%, Cash – 100%|
|Maximum exposure to a single investment||ASX Listed securities – 5%, ETFs and LICs – 12%, Managed Funds, Government and Semi Government Bonds and Term Deposits – 24%|
|Performance Benchmark||VIP Conservative Composite Index: 20% S&P/ASX100 Index plus 10% S&P/ASX 200 A-REIT Accumulation Index plus 60% 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.