A highly defensive portfolio of domestic bond and credit securities and international government bonds to deliver high income and moderate capital growth.
The portfolio aims to provide a high level of income over the medium to long term through investment in a diversified portfolio of Australian and International fixed income securities including but not limited to; Government and Semi-Government Bonds, Corporate Notes, Asset Backed Securities, and Cash. The portfolio invests in 4 to 10 managed funds and exchange traded funds that are managed with a top down economic analysis and assessment of how macroeconomic factors will influence both bond and credit markets with reference to the performance of equity markets to assess fixed interest strategies.Underlying managers are selected by the VIP Investment Committee follow extensive Due Diligence which incorporates, but is not limited to people, process, performance and investment style.
Investor Suitability
- Seek a high level of income and a minimal potential for capital growth
- Want to invest in a diversified bond and credit portfolio with exposure to domestic and global securities actively managed by underyling managers specialising in this asset class
- 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