This portfolio may suit ESG-aware investors seeking stable, regular income from low volatility assets but with some exposure to the share market, are focused on capital preservation and are prepared to forego the potential of higher returns for lower volatility and the preservation of capital.
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 70% exposure to income assets (such as cash and fixed interest), and around 30% exposure to growth assets (such as shares, property, infrastructure, and alternative assets). This approach aims to provide enhanced diversification and improve risk-adjusted returns. The portfolio will seek to include investments that consider ESG characteristics. However, the portfolio can include managers that may not take into account ESG factors as part of their investment process.
Australian Shares: 5.0% – 30.00% (Min % – Max %)
International Shares: 5.0% – 30.00%
Property & Infrastructure: 0.0% – 31.00%
Australian Fixed Interest: 6.25% – 26.25%
International Fixed Interest: 6.25% – 26.25%
Alternatives: 0.0% – 16.50%
Cash: 2.0% – 40.00%