PIC Wholesale Inflation Plus Moderate Portfolio
About this Fund
|FUND MANAGER||Private Investment Consulting / MLC|
|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.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||Consumer Price Index|
|FUND SIZE||Consumer Price Index|
|NO. OF HOLDINGS|
|FEES||0.85% 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:
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.
The Trust may be suited to you if:
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.
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:
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
TOTAL FIXED INTEREST & CASH: 5%-100%
TOTAL SHARES & LISTED PROPERTY TRUSTS: 0%-80%
TOTAL ALTERNATIVES: 0%-30%