Conservative Portfolio

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%.

Investor Suitability

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 focused 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 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 time frame of between 5 and 7 years, and understand that capital preservation is not guaranteed.

Portfolio Literature

Indicative Asset Allocation & Range

The VIP Conservative portfolio aims to invest up to a 30% allocation in growth assets; however the portfolio can hold up to 100% allocation in cash.

Conservative Portfolio Details