The Portfolio aims to achieve its objective through exposure to a diversified range of asset classes using relevant exchange traded funds (ETFs).

The BetaShares Dynamic ETF Model Portfolio - Conservative aims to provide attractive risk-adjusted returns over time, subject to a level of overall return volatility suitable for investors considered to have a “low” risk profile.

BetaShares is a leading Australian manager of exchange traded funds (ETFs) and other exchange traded products, which trade on the Australian Securities Exchange (ASX). BetaShares’ aim is to create intelligent investment solutions that broaden the investment possibilities for Australian investors and their advisers. As an Australian born and managed firm, BetaShares thinks deeply about factors affecting Australian investors and builds products specifically for Australian clients. BetaShares’ local focus has allowed the team to build the largest and most innovative suite of exchange traded products in Australia.

• Focused asset class selection - The models are kept intuitive and easy to explain by focusing on getting the
  ‘big’ decisions right across the major asset classes. Addition of further asset choices (e.g. country or sector
  level tilts) adds complexity and tends to offer little incremental value.

• Dynamic asset allocation - Flexibility to seek to capture both alpha from asset-class mispricing and manage
  downside risk by tilting from the strategic allocations. A combination of both quantitative models and
  qualitative assessments are utilised.

• Best-of-breed ETF selection - The underlying ETF product selection is based on investment merit, with both
  BetaShares funds as well as those from other managers used.

• Mix of market-cap and smart beta methodologies - funds selected may use ‘smart beta’ methodologies which
  have a demonstrable rationale and seek to outperform market-cap weighted approaches.

• Reporting, service and support - High quality reporting, support tools, dedicated nationwide adviser services
  team and personalised service. Access to BetaShares Portfolio Management Team, Investment Specialists
  and Chief Economist.
• Business strength - An Australian founded and managed business, BetaShares manages ~A$15.4 billion in
  AUM, and is part of a global funds management group with ~US$162 billion in AUM

The BetaShares Dynamic ETF Model Portfolio - Conservative aims to provide attractive risk-adjusted returns over time, subject to a level of overall return volatility suitable for investors considered to have a “low” risk profile in accordance with the Australian Prudential Regulation Authority’s (APRA) “standard risk measure”, or SRM*.

The Portfolio aims to produce total returns of CPI + 1.5% p.a. over a rolling 5-year period, subject to a likelihood of no more than 1 negative return year, on average, every 20-years. The Portfolio aims to enhance risk-adjusted returns over time through dynamic asset class tilts. The Portfolio aims to achieve its objective through exposure to a diversified range of asset classes using relevant exchange traded funds (ETFs).

Although many investment markets can be considered highly efficient, BetaShares’ believes that opportunities for exploitable above market returns (or “alpha”) may arise over time where investor biases, poor liquidity, or information imperfections can give rise to individual security and/or broader asset class mispricing. As a result, BetaShares believes that dynamic “asset class tilting” can provide enhanced risk adjusted returns over time when mispricing across asset classes is apparent. At the fund selection level, BetaShares’ philosophy is also to remain open to the use of active, “smart beta” or other rules-based investment strategies where these approaches appear able to offer better risk-adjusted intra-asset class returns compared to more traditional passive investment strategies such as market-cap weighting.

A distinctive feature of BetaShares Model Portfolios is that they use a ‘best of breed’ approach to instrument selection, meaning that the models are not solely made up of BetaShares funds, with external ETFs used as and where deemed appropriate by the model manager. 

Each model portfolio is reviewed quarterly by the BetaShares Investment Committee (chaired by Chief Economist, David Bassanese) to ensure it is consistent with desired target allocations and risk profile. Investment tool selection is open to review on a quarterly basis by the Committee.