CFS Sestante Dynamic Balanced – Pension

INVESTOR SUITABILITY

Designed for investors who seek a relatively high level of capital growth on their investment; seek a modest level of income; and are willing to accept a high level of short to medium-term capital volatility.

INVESTMENT PHILOSOPHY

AZ Sestante portfolios are designed to meet specific risk and return objectives in line with client needs and aim to use proven portfolio construction capabilities and high-quality investment managers to ensure consistently favourable investment outcomes for clients. Underlying this philosophy is the belief that an efficiently constructed Strategic Asset Allocation combined with active medium-term Dynamic Asset Allocation has been proven to add value over the long term. The ability to provide access to best-of-breed specialist investment managers at a reasonable cost can add value over and above the index in certain sub-sectors. However, understanding and managing the portfolio’s beta by asset class is also critical in the construction of a successful fund of fund product and can generate cost efficient outcomes.

INVESTMENT STRATEGY & APPROACH

The portfolio aims to use AZ Sestante’s portfolio construction capabilities and invest in high quality asset investments with around 30% exposure to income assets (such as cash and fixed interest), and around 70% exposure to growth assets (such as shares, property, infrastructure and alternative assets). This approach aims to provide enhanced diversification and improve risk-adjusted returns.

Investment Objective

To deliver outperformance of the RBA Cash Rate +3.25% p.a. over a rolling 6-year period after fees.

Investment style

Active

Stadard risk measure

High

Suggested time frame

6 years

Benchmark

Morningstar Category: Average – Australia.
Superannuation Multisector Moderate

Growth / Defensive Split

70% Growth / 30% Defensive