The Fund aims to generate investment returns 5% higher than the RBA cash rate by investing in a diversified portfolio of predominantly Australian equities, complemented by selective exposure to international equities and cash.

The Fund targets absolute returns with an annualised return objective of 5% above the RBA cash rate while seeking to preserve investor capital over rolling three year periods (net of fees).

Some of the significant benefits of investing in the Fund are as follows:

• Potential to generate strong investment returns 5% higher than the RBA cash rate through a diversified portfolio of predominantly Australian equities, across a range of market conditions.
• A focus on absolute returns rather than benchmark relative returns, with the ability to preserve capital in times of heightened uncertainty, risk or less conviction in available investment ideas.
• The Fund provides access to the investment expertise of Milford’s investment team in Australia and MAM in New Zealand.
• The Fund employs systematic measuring, monitoring and management of investment risk.
• The Fund provides regular investment reporting (annual as well as periodic) with respect to your investment.

Designed for investors with a medium to high risk tolerance who are seeking absolute returns over a long-term investment period.

Milford Australia Pty Ltd

Milford is a wholly owned subsidiary of Milford Asset Management Limited (“MAM”). MAM was formed in 2003 and is the parent company of a well-established, award winning investment management group that has over $12 billion AUD under management. Milford is a boutique investment firm that was created in Australia in April 2014 to enable investors to take advantage of the investment expertise and experience of the MAM team. 

The Fund aims to generate investment returns 5% higher than the RBA cash rate by investing in a diversified portfolio of predominantly Australian equities, complemented by selective exposure to international equities and cash. The Fund also aims to preserve capital and minimise volatility in times of higher uncertainty or less conviction by allowing the Fund to be invested in cash up to 100% of the Fund value, and may use Derivatives (limited to 10% of the Gross Asset Value (GAV) of the Fund) and foreign currency hedging to achieve the desired level of market exposure.

Investment Philosophy
As investment markets are in a state of constant change, Milford adopts an active approach to investing. This allows Milford to take advantage of investment opportunities as they arise, and seek to provide a level of capital protection when markets are less favourable.

The key principles that underpin Milford’s philosophy are:

1. An active portfolio management approach with a focus on absolute returns.
2. Fundamental bottom up investment research of the assets invested in and conduct of regular company visits.
3. Understanding the changes in the local and global economic environments and how these changes are likely to impact the markets in which clients’ assets are invested.
4. Managing risk and preserving investors’ capital through appropriate portfolio diversification and a broad investment universe.
5. Viewing its role as partial ‘owners’ of the companies in which they invest on behalf of clients. As such, taking an active interest in the corporate governance of many of these entities.

Milford believe this approach to investing clients’ funds will deliver strong returns over the medium term while avoiding large capital losses.

Investment guidelines

The following are indicative asset allocation ranges for the Fund: