Australian Prudent Super Australian Prudent Super provides a range of investment optons to suit the requirements of investors with a preference for ethical investments that contribute to the beterment of society, both locally and globally.

AUSTRALIAN Master Ethical

DEFENSIVE STRATEGY

Portfolio Description

A diversified portfolio of predominantly defensive assets, such as cash, gold and income producing securities, along with assets such as Australian shares, property and international securities.

Investment Objective

To provide exposure to an actively managed portfolio of defensive assets with the potential for some capital growth over the investment timeframe, whilst abiding by ethical investment principles. The strategy aims to deliver significantly lower volatility than the Australian share market.

Performance Objective

To outperform the average annual rate of Australia’s Consumer Price Index (CPI) by at least 3% p.a. over the minimum investment timeframe.

Suggested Minimum Investment Timeframe

4 years

Investor Suitability

Investors who:
  1. 1. Require a diversified portfolio of assets in normal market conditions but require capital to be preserved where market conditions warrant
  2. 2. Are focused on capital preservation and are prepared to forego the potential of higher returns for lower volatility and the preservation of capital
  3. 3. Seek relatively stable, regular income from low volatility assets, but with some exposure to the share market growth
  4. 4. Are prepared to invest for the minimum investment timeframe
  5. 5. Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed but is an objective of the portfolio
  6. 6. Understand that in some circumstances, some defensive assets may fall in value due to changes in the prevailing economic climate
  7. 7. Understand that international assets are invested in foreign currencies which may increase the extent of fluctuations in the value of certain investments held in the portfolio
Range and indicative allocation of Growth/Defensive assets Asset Class Asset Class Range Indicative Allocation
Defensive 30 to 70% 50%
Growth 30 to 70% 50%
Range of indicative allocation of each asset class Investment Range Indicative Allocation
Australian Equities 0 to 35% 20%
Property & Infrastructure 0 to 30% 10%
International Equities 0 to 35% 20%
Defensive Property (listed) 0 to 30% 15%
Gold & Commodities 10 to 50% 30%
Cash 0 to 25% 5%
Authorised Investments Exchange Traded Funds (ETFs); Managed Investment Schemes; Australian Real Estate Investment Trusts (A-­‐REITs) and Property Related Securities; Australian Shares; Initial Public Offerings (IPOs); Cash.
Indicative number of holdings 25 to 60
Risk Profile Low to Medium (Risk Band 4)
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