A portfolio of global companies with some of the most recognisable brands in the world, positioned to benefit from global economic growth.

The portfolio aims to provide long term capital growth by investing in a diversified portfolio of international assets. The portfolio actively invests in 2 to 5 managed funds, Exchange Traded Funds (ETF’s), or Listed Investment Companies (LIC’ss) that provide diversified exposure to international share markets. Underlying managers are selected by the VIP Investment Committee by undergoing due diligence into the managers People, Investment Processes, and Investment Performance; and selecting managers that provide investment sector, style, and geographical diversification.

At any given point in time, investors are exposed to corporates in regions including North America, South America, Europe, Asian and others. International investing offers exposures to industries and growth opportunities that may not be available on the Australian Stock Exchange.

 

Strategic Geographic Exposure

Investor Suitability

  • Seek capital growth over the long term with the potential for some income
  • Wish to achieve investment diversification by accessing international share markets
  • Accept that returns over the shorter term may fluctuate
  • Understand that an investment may potentially experience volatility associated with equity investment and foreign currency exposure
  • Accept that the underlying managed funds may invest in derivatives
  • Are prepared to invest for the minimum investment time frame of between 5 and 7 years understanding capital preservation is not guaranteed

VIP International Portfolio Details

Frequently Asked Questions

This portfolio can be invested any listed company in the world that passes the screening and research process of our underlying managers. Unlike most other investment managers at any point in time as a client you will be able to use your login to see what managers you are invested in and when available you will be able to access their holdings.

Being an active manager at times when volatility is high and it is required to protect investor capital the frequency of trading can become very high potentially a couple times a week, but in normal market environments trading on a portfolio wide level occurs quarterly. Albeit in mind that throughout each quarter positions can be introduced, eliminated, increased, or reduced as the investment committee decides.

When investing in Value Investment Partners, investors are able to see their direct investments at any time through our portal. If these investments include managed funds, the holdings within these managed funds will usually be able to be provided at request, although this is at the discretion of the underlying fund manager.

We believe that giving investors exposure to companies who are considering the long-term potential impacts of environmental, social, and governance (ESG) risks to their businesses and their industry group is part of long-term capital protection and risk management. Because many ESG risks pose material threats to the future of a business’s profitability but have a low probability of eventuating, we believe that seriously considering these risks as part of managing tail risk exposure of our investments.

We ensure that all of our underlying managers have comprehensive ESG policies and that they consider ESG risks as a crucial aspect of the investment analysis.

This portfolio does include share dividends in it’s distribution, which are reinvested in the portfolio when it is rebalanced. While the level of franking will fluctuate depending on what securities are held, as franking credits are only given to the associated revenue and tax earned and paid in Australia. Resulting in the overall portfolio is not fully franked.

There are three main components of the costs associated with an investment such as this. 

The first being your management fee which is 0.55% (including GST) per annum calculated daily on the portfolio value. That is the simplest cost unchanged throughout the year and applied the same on every dollar of your portfolio.

The second is your administration fee and this is a tiered cost depending on the total value of the portfolio/s you have with VIP but is capped at $2,100 per annum. Details on the different fee categories for administration can be found in the Investment Option Document and/or Members Guide.

The third major cost component is brokerage and this is a moderately variable part of your total annual cost. In market environments that are highly volatile and require more frequent portfolio changes to protect capital, brokerage costs may be higher. In normal market environments portfolio turnover is constantly considered by the portfolio manager to optimise the trade off between high frequency of trading eroding outperformance and maximising client returns. Although there is a moderate variability in the brokerage costs it is a small part of the three major components of the total annual cost of the investment.

Volatility is managed constantly within the portfolio. This is achieved firstly by diversifying the holdings effectively in order to minimise company-specific risk. Diversification also extends to asset classes, where a combination of growth and defensive assets make up the portfolio to ensure clients always have exposure to a performing asset class in any market condition.

Value Investment Partners is not a hedge fund and does not take hedging positions with derivative contracts. Derivatives are financial instruments that derive their value is based on an underlying security, such as a stock. This portfolio does not directly use derivatives. 

When markets suffer declining price Value Investment Partners has successfully demonstrated our ability to reduce losses by investing in traditionally defensive assets that perform well relative to others in negative market environments. These assets include but are not limited to; cash, bonds, US dollars, gold, and consumer staples companies.

Interested In Investing? Get In Contact With Our Team