PIC Wholesale Inflation Plus Moderate Portfolio

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101547-2023-12-01-02:47.pdf
FUND MANAGER Private Investment Consulting / MLC
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 deliver a return of 3.5% p.a. above inflation (before deducting fees) over 5-year periods.
BENCHMARK Consumer Price Index
FUND SIZE Consumer Price Index
FEES 0.92% p.a. of the net asset value of the Trust



Benefits of investing in the PIC Wholesale Inflation Plus Portfolios

More confidence that you'll achieve your financial goals

We've designed the Trust to give investors more confidence that they'll receive a return above inflation over a seven year timeframe, through different investment environments.

Most traditional diversified funds aim to match or outperform a market benchmark. However, even an above-benchmark return won't always be the return investors need, especially when markets are weak. Instead, the Trust's focus is maintaining and growing your real wealth.

We aim to achieve a return above inflation by carefully managing risk, particularly by avoiding the big losses that can set back an investment.

We focus strongly on managing the Trust's risk of negative returns over seven years, mainly through:

  1. flexible asset allocation-as our views on the market evolve, we can change the mix of assets so the Trust is better positioned to achieve its objective, and
  2. diversification-we invest in a wide range of assets and strategies. This gives us more potential sources of returns.

Although our investment experts carefully manage the Trust, we can't remove all risk that at times, the Trust may not achieve its objective.

For information about how we manage the Trust, please refer to Key aspects of the investment strategy' on page 11 of the PDS.

A smoother path to your financial goals

Traditional diversified funds usually have tight asset allocation ranges. This prevents the manager making large adjustments to the mix of assets to manage changing market risk. It also means the fund's returns tend to reflect market movements.

In contrast, in managing the Trust our investment experts can move flexibly between asset classes to manage risk. This means we expect the Trust to perform better in weak markets than a traditional diversified fund.

As there's a trade-off between risk and return, this may also mean the Trust lags in strong markets.

We anticipate the outcome for investors will be a pattern of returns that's smoother and less influenced by market movements than a traditional diversified fund with a similar level of gearing.

A proven investment strategy

Since 2005, we have successfully used this flexible, outcome-focused approach to manage this Trust. Now, we also use this approach to manage the other two Inflation Plus portfolios.

A market-leading approach to portfolio design

The approach we use to design and manage the portfolio recognises we live in a complex, changing world.

Key to our approach is a unique Investment Futures Framework, which guides our forward-looking approach to managing risk.

Our investment experts constantly explore the many ways events could unfold in markets worldwide and the potential impact on our Trusts.

Through this careful analysis, our experts discover changing risks and opportunities. They can then adjust the portfolio to manage the risks and capture the potential returns.

This means our Trusts are better positioned to deliver more reliable medium to long-term returns to investors.

Investor suitability

The Trust may be suited to you if:

  • you're aiming to achieve a return above inflation but, more importantly, are concerned about losing money over a 5-year period
  • you understand the return achieved by the Trust may be significantly higher or lower than its objective you understand that the Trust's asset allocation will change significantly over time, and
  • you want to manage investment risk by diversifying across asset classes and strategies.




Key Features

About the Fund

The Trust will primarily invest in in underlying funds which invest in asset classes and strategies such as cash, fixed income, shares, listed property securities and alternatives.

Investment objective

Aims to deliver a return of 3.5% pa above inflation (after management costs), subject to limiting the risk of negative returns over 5-year periods.

This careful risk management approach means there may be times, such as when interest rates are unusually low, when the Trust requires an extended period to achieve its return objective. In most circumstances the Trust is expected to provide positive returns over 5 year periods, although there will sometimes be negative returns over shorter periods.

About Private Investment Consulting

Private Investment Consulting (PIC) offers an exclusive program of services and PIC Trusts to a select group of financial advisers. Clients of these advisers and wholesale clients may invest in the PIC Trusts. These clients may include sophisticated, high net worth and institutional investors.

MLC Investments Limited (MLC) is the Responsible Entity of the MLC Wholesale Inflation Plus - Moderate Portfolio (ARSN 165 016 151) (Trust), also referred to in this PDS as the PIC Wholesale Inflation Plus - Moderate Portfolio (Portfolio). The Portfolio is a PIC branded version of the Trust, offered to sophisticated and wholesale clients of PIC. When you invest pursuant to the PDS, you acquire units in the Trust.


How we invest your money

The key aspects of the way the Trust is managed are:

  1. flexible asset allocation - the asset allocation is actively managed in accordance with MLC's changing view of potential risks and opportunities in investment markets.
  2. diversification - the Trust invests across a wide range of assets and strategies. These may include both mainstream (eg shares and government bonds) and alternative investments (eg hedge funds) that may not be widely used in other investment funds. To manage the assets and strategies, MLC carefully selects specialist investment managers from around the world.
  3. strong focus on risk management - the Trust has the flexibility not to invest in an asset class if that would cause too much risk of a negative return over 7 years. This means the Trust may have no exposure to growth assets in some market conditions.

MLC expects that by managing the Trust in this way, movements in the Trust's value (both up and down) should be less significant.

Asset allocation ranges

  • Cash: 0%-100%
  • Australian fixed interest: 0%-60%
  • Global fixed interest: 0%-60%
  • Australian shares: 0%-50%
  • Global shares: 0%-50%
  • Listed property securities: 0%-50%
  • Alternatives: 0%-40%