The VIP Fixed Interest portfolio aims to provide a high level of income over the medium to long term through investment in a diversified portfolio of Australian fixed income securities including Government and Semi Government Bonds, Managed Funds, Term Deposits and Cash.
The portfolio invests in 4 to 10 fixed income securities including Government and Semi Government Bonds, Managed Funds, Term Deposits and Cash that are managed with a bottom up approach while taking top down economic considerations into consideration.
Cash flow, duration, and liquidity considerations will also play into the portfolio construction process.
The VIP Fixed Interest portfolio is suitable for investors who:
- Seek a high level of income and a minimal potential for capital growth.
- Prefer a portfolio designed to have low turnover.
- Want lower volatility than investments in the share market provides.
- Understand that much of 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.
The VIP Fixed Interest portfolio aims to be fully invested in Australian shares; however the portfolio can hold up to 100% allocation in Cash.
|VIP Fixed Interest|
|Indicative number of holdings||4 – 10|
|Authorised Investments & Maximum Portfolio Exposure||Managed funds, Bonds, Term deposits – 98%, Cash – 100%|
|Maximum exposure to a single investment||Government and Semi Government Bonds, Managed Funds and Term Deposits – 30%|
|Performance Benchmark||UBS Australian Composite Bond Index|
Portfolio Performance & Portfolio Update
For information the current portfolio update and performance please download the current Portfolio Profile & Update document.