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. Finally, the potential investment are screened by risk models to ensure that diversification is maintained and investors are not exposed to unexpected levels of risk in order to generate a return which exceed the benchmark.
The VIP Fixed Interest portfolio is suitable for investors who: