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InvestSense MultiAsset Portfolio 5 - MyNorth

About this Fund

Fund Detail

PDS https://www.northonline.com.au/content/dam/product/mynorth/mynorth_managed_portfolios_pds.pdf
FUND MANAGER InvestSense
ASX Code
APIR NTH0295
ASSET CLASS DIVERSIFIED
INVESTMENT STYLE

With a forward-looking view of expected returns and implied risks, InvestSense aims to understand if the market is sufficiently rewarding investors for the risks they are undertaking across different asset class.

The portfolio does not have a pre-defined asset allocation, instead InvestSense employs an objective based approach which aims to determine the appropriate mix of asset classes that is likely to achieve the stated objective while minimising the level of risk.

INVESTMENT PROFILE

The InvestSense North Portfolios are comprised of direct shares, ETFs (Exchange Traded Funds) and active and passive managed funds invested across Australian and international equities, listed properties and infrastructure, fixed interest, cash and alternative assets. By mixing these different assets, the portfolios aim to achieve their investment objectives while minimising cost and the risk of losses.

The portfolio manager’s strategy is relatively unconstrained and there may be times when the actual asset allocation will deviate significantly from the expected long term average position.

In practice this means using the transparency afforded by managed account platforms to monitor and manage risk in minute detail while retaining a high level focus on meeting the objectives of the underlying investor

CURRENCY MANAGEMENT
INCEPTION DATE 30-09-2022
BENCHMARK CPI +5% per annum
FUND SIZE CPI +5% per annum
DISTRIBUTION FREQUENCY
NO. OF HOLDINGS 7-30 wholesale managed funds & ETFs and 20-40 Australian equities
FEES 0.75% of FUM
STRUCTURE

Benefits

Benefits
  • The InvestSense Diversified Portfolios use a dynamic asset allocation process, meaning the mix of asset classes will change over time as markets conditions change. This process aims to improve expected returns over time while reducing the risk of losses. InvestSense aims to limit the frequency of changes in order to minimise transaction costs.

 

  • In order to decide the portfolios’ asset allocation InvestSense use a valuation-based investment approach, which aims to ascertain which assets are cheaper relative to each other, and therefore how much investors are likely to get paid to own them. This process allows InvestSense to provide investors with their estimates of expected returns and of “worst case scenario” losses. Importantly, it helps create a transparent link between asset allocation and investment objectives.

 

  • Finally, when selecting products within each asset class, InvestSense seeks to find the right balance between low fees and optimal outcomes. In other words, the portfolios will use cheap index funds where it makes sense and active managers where they can provide a better risk/return trade-off (after fees) or when an index exposure is too risky.

 

  • The InvestSense Diversified Portfolios are monitored continuously and they implement changes and rebalance the portfolios when necessary.
RISK LEVEL Very High
INVESTOR SUITABILITY

 Suitable for Investors who:

  • Seek a high return above inflation but with a high tolerance for risk and are therefore willing to accept a high degree of volatility in their portfolio in order to achieve their long-term objective.
  • Seek a portfolio diversified across a range of different asset classes; and
  • Want a portfolio where the asset allocation is actively managed based on changes in market valuations.

Risks

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Detail

Key Features

Managed Funds

  • Investing in managed funds should enable you to build wealth over time, increase the diversification of your investments and receive professional management of your funds. Managed funds may also distribute gains, allowing you to receive an income from your investments.
  • They enable investors to access listed investments without buying direct for ease of management and in some cases access tax effective investments with franking credits (although indirectly).

ETFs

  • Investing in ETFs should enable you to build wealth in a tax-effective manner and receive tax-effective income due to the benefits of franking credits, where applicable.
  • Due to increasing ETF availability, you can buy assets that are in line with your investment risk profile and preferences. ETFs also allow you to increase the diversification of your investments in a cost-effective manner and increase the liquidity and certainty of price.

Direct Shares

  • Investing in a portfolio of direct shares enable you to build wealth over time while increasing the diversification of your investments (as compared to holding a smaller number of shares). It also allows you to benefit from professional portfolio construction while lowering ongoing management costs compared to traditional managed funds and ETFs.
  • In the case where you’re already holding shares that are also in the portfolio, you can transfer your existing direct shareholding into the portfolio and still retain beneficial ownership while potentially minimising any capital gains tax event. Dividends are paid directly to your account, and therefore taxed at your personal tax rate. Because you are not pooled with other investors (as in a managed fund) you will not be forced to pay capital gains taxes on gains you haven’t experienced.

 

Mandate

 Asset allocation range (%) Target Maximum
 Australian equities 44% 80%
 Global equities 43% 80%
 Listed Property & infrastructure 11% 40%
 Alternatives 0% 40%
Growth Total 98%  
 Australian fixed interest 0% 30%
 International fixed interest 0% 30%
 Cash 2% 30%
Defensive Total 2%