Asset Allocation
Asset allocation refers to the allocation of assets to specific asset classes such as shares, property, fixed interest and cash. It is very important to get the asset allocation right as your exposure to Australian shares as opposed to cash will have a far greater impact on your long term returns over selecting one specific investment over another.
Please find following the asset allocations for the range¹ of investor profiles. Your investor profile is determined after discussions with your adviser.
| Benchmark Calculations - Range | |||||
| Conservative Investor | Moderately Conservative Investor | Balanced Investor | Moderately Aggressive Investor | Long Term Growth Investor | |
| Australian Cash | 10 - 50 | 10 - 40 | 5 - 25 | 0 - 20 | 0 - 10 |
| Australian Fixed Interest | 25 - 55 | 25 - 45 | 10 - 30 | 5 - 25 | 0 - 10 |
| International Fixed Interest | 5 - 15 | 5 - 15 | 5 - 15 | 0 - 10 | 0 - 10 |
| Defensive Assets | 80 - 90 | 65 - 75 | 40 - 60 | 20 - 30 | 0 - 10 |
| Australian Property | 0 - 10 | 5 - 15 | 5 - 15 | 5 - 15 | 5 - 15 |
| Australian Equities | 5 - 15 | 15 - 25 | 20 - 40 | 40 - 50 | 45 - 55 |
| International Equities | 0 - 10 | 5 - 15 | 10 - 20 | 15 - 25 | 20 - 30 |
| Growth Assets | 10 - 20 | 25 - 75 | 40 - 60 | 70 - 80 | 90 - 100 |
| Return objective | #CPI + 2% | CPI + 3% | CPI + 5% | CPI + 6% | CPI + 8% |
| Time horizon | 1 - 2 Years | 2 - 3 Years | 3 - 4 Years | 4 - 5 Years | 5 Years + |
#CPI refers to the consumer price index
¹ A range is an acceptable variance to your asset allocation within a sector that we are comfortable for your investments to be allocated to during times of market movement (i.e. as one sector outperforms another sector its allocation will naturally increase due to the increased value).
If you would like more information, please call our office on (03) 9853 1676.