MLC MasterKey Unit Trust Horizon 4 - Balanced Portfolio

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101194-2023-11-30-02:42.pdf
ASX Code
INVESTMENT STYLE The portfolio is broadly diversified across asset classes and investment managers from around the world.
INVESTMENT PROFILE The portfolio aims to provide a return higher than its benchmark (before fees and tax) over four-year periods, while managing risk.
BENCHMARK Custom composite
FUND SIZE Custom composite
FEES 1.48% p.a.



Benefits of investing in the MLC MasterKey Unit Trust

Diversify to reduce volatility and other risks

  • Diversification - investing in a range of investments - is a sound way to reduce the short-term volatility of a portfolio's returns. That's because different types of investments perform well in different times and circumstances. When some are providing good returns, others may not be.
  • Portfolios can be diversified across different asset classes, industries, securities and countries, as well as across investment managers with different approaches.
  • The more you diversify, the less impact any one investment can have on your overall returns.
  • One of the most effective ways of reducing volatility is to diversify across a range of asset classes.
  • Diversification across asset classes is just one way of managing risk. MLC's multi-asset portfolios diversify across asset classes and investment managers. Please refer to the 'Our approach to investing' in the 'Investing in MLC investment options' section of the PDS for more information.

Risk level


Investor suitability

The investment option may be suited to you if:

  • you want a diversified portfolio that invests mainly in growth assets
  • you want to rely largely on the market for returns
  • you want long-term capital growth, and
  • you understand that there can be large fluctuations in income and the value of your investment.




Key Features

About the MasterKey Unit Trust

Whether investing for the long or short term, the MLC MasterKey Unit Trust helps bring your goals to life.

Whatever your needs, our extensive range of investments means you can build the portfolio you want.

Looking out for your interests

  • The PDS outlines how MLC manage your money, the benefits and risks of investing and the fees you'll be paying.
  • This will help you decide whether the investment you're considering is right for you.
  • If you need any further details, please speak with your financial adviser or call MLC on 132 652.

Who can invest

You can only invest in the MLC MasterKey Unit Trust if you're:

  1. an existing investor invested directly in an MLC investment option
  2. an existing investor invested directly in a National investment option
  3. an existing MLC MasterKey Investment Service investor, or
  4. applying for the MLC Cash Fund through the MLC MasterKey Investment Service Fundamentals.

If you only hold a National investment option you can't switch to an MLC investment option and you can only switch to the same fee option of another National investment option.


How we invest your money

Investment markets are the main driver of the Trust's investment returns. The Trust's allocation to investment markets is shown in its benchmark asset allocation and ranges below. The benchmark asset allocation has a strong bias to growth assets and some exposure to defensive assets.

Our investment experts actively look for opportunities to provide better returns, or less risk, than those generated by the benchmark asset allocation and to manage the Trust's exposure to the risks of investing in markets. Our investment experts do this by:

  1. Researching and selecting a broad range of mainstream asset classes, and including some exposure to alternative assets and strategies.
  2. Adjusting the allocations to the asset classes within the defined ranges shown below.
  3. Researching hundreds of investment managers from around the world and selecting the managers they believe are the best for the Trust. These investment managers, who are mainly active managers, choose many companies and securities in Australia and overseas for investment.

Investment objective

Aims to outperform the benchmark, before fees and tax, over 4 year periods.

We aim to achieve this by actively managing the portfolio. This includes changing the portfolio's asset allocation to reduce risk if market risk is high. As a result of reducing the allocation to higher risk assets, there may be smaller losses than the benchmark in weak or falling markets and potentially lower returns than the benchmark in strong markets.

While the portfolio isn't managed to achieve a particular return above inflation, an average return of 4.75% pa above inflation (before fees and tax) is consistent with historical long-term returns from investment markets, using an asset allocation similar to the portfolio's. More information about long-term investment market returns is provided below.

Benchmark asset allocation and ranges

(Asset class: Benchmark asset allocation / Ranges)

  • Cash: 1% / 0%-15%
  • Fixed income: 26% / 5%-40%
  • Defensive alternatives and other: 5% / 0%-15%

Total defensive assets: 32% / 20%-40%

  • Australian shares: 28% / 20%-45%
  • Global shares: 22% / 10%-40%
  • Listed property securities: 4% / 0%-15%
  • Growth alternatives and other: 8% / 0%-15%
  • Private assets: 6% / 0-10%

Total growth assets: 68% / 60%-80%