This portfolio can be invested in any private company in Australia that passes the screening and research process of the underlying managers. You also, may be invested in private credit which is giving loans to companies in place of receiving a loan from a bank or similar institution. Unlike most other investment managers at any point in time as a client you will be able to use your login to see what funds you are invested in. Those underlying funds will disclose at their discretion what investments have been made, while we can also request that information for you on an ad hoc basis

The selection of underlying managers is a long and rigorous process, therefore when a manager is selected and that trade is made there often will not be frequent changes but we will constantly monitor and liaise with the managers to ensure that the best results for our clients are achieved. 

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 will not have share dividends and any income received from it will not be franked, unless for unforeseen circumstance where an underlying private investment qualifies for franking credits to be attached to its distributions.

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.