BetaShares Dynamic ETF Model Portfolio - Balanced
About this Fund
|FUND MANAGER||BetaShares Capital|
|ASSET CLASS||SEPARATELY MANAGED ACCOUNTS|
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 - Balanced aims to provide attractive risk-adjusted returns over time, subject to a level of overall return volatility suitable for investors considered to have a “medium” risk profile
|BENCHMARK||CPI + 3.25% p.a. over a rolling 5-year period|
|FUND SIZE||CPI + 3.25% p.a. over a rolling 5-year period|
|NO. OF HOLDINGS||11|
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.
|RISK LEVEL||Low - Medium|
The BetaShares Dynamic ETF Model Portfolio - Moderate 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 to medium” 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 + 3.25% p.a. over a rolling 5-year period, subject to a likelihood of no more than 3 negative return years, 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.