Asset classes explained

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Asset classes explained"

Transcription

1 Asset classes explained The ups and downs in financial markets have made many investors uneasy about investing in riskier assets. In such times, it often helps to take a step back and consider each asset class to better understand how it works and what to expect. The main types of asset classes are shares, property, bonds (or fixed interest as they are often called) and cash. Within each asset class, there are further asset types. For example within shares, investors can choose from Australian shares, international shares or within the international shares arena, specific regions or countries like China or emerging market shares. Investors may sometimes base their investment decision on the historical performance of asset classes although this approach is fraught with danger. The value of $100 invested in the various asset classes over a historical 15 year period is illustrated below. Indices used are as follows: Australian shares - S&P/ASX 300 Accumulation Index, International shares - MSCI World Ex Australia Index (net. Div. Reinvested) AUD, Australian bonds - UBS Composite Bond Accumulation Index, International bonds - BarCap Global Aggregate Bond Index (hedged AUD), Listed property (REITs) - S&P/ASX 300 A- REIT Accumulation Index, Cash - RBA Bank Accepted Bills 90 Days, CPI - ABS Consumer Price Index

2 It is paramount that investors understand the different asset classes to ensure they make informed investment decisions. These different asset classes are explained below. Australian Shares Shares represent part ownership in a company. There are different types of shares such as ordinary shares, preference shares or partly-paid (contributing) shares. Owning shares in a company entitles the investor to participate in any dividends paid by the company from its profits. This represents the income return from shares. Dividends from Australian shares often include tax benefits in the form of franked dividends. Franked dividends are dividends paid by a company out of profits on which the company has already paid tax. The investor is entitled to a franking (imputation) credit, or reduction in the amount of income tax that must be paid, up to the amount of tax already paid by the company. This means that the investor avoids paying tax twice on the profits generated by the company once by the company and again by the investor at their own tax rate. Share ownership also exposes the investor to movements in the share price of the company. If the share price increases above the price that it was purchased, the investor will make a capital gain. On the other hand, if the share price falls below the price at which the shares were originally purchased, the investor makes a capital loss. The price of shares can be influenced by a number of factors including the performance of the local and international economies, interest rates, inflation and the magnitude of competition in the industry the companies operate in, as well as investor sentiment. Share prices tend to fluctuate substantially over short periods of time but over longer periods such as over five and ten years, their returns tend to be more reliable. For this reason, it is often suggested that investors consider share investments only if they are willing to stay invested for at least five years. The type of company and industry can have a major impact on the performance of the shares. In recent years, resource companies that sell commodities to countries including China and India have been negatively impacted by the decline in commodity prices. On the other hand, some industries like banks have benefitted by the search by investors for high yielding investments. The composition by industry of the Australian share market is illustrated in the graph below. It illustrates that over 60% of the Australian share market is represented by resource and finance companies.

3 International shares International shares are shares in companies that are domiciled in a country other than Australia. Investors often spread their money across a range of countries and industries. Like Australian shares, the return from international shares is made up of any dividends received as well as the capital gain or loss resulting from the change in the company s share price. International shares are different to Australian shares in a number of key ways: The dividends paid by international shares tend to be lower than those paid by Australian companies and therefore the income return tends to be lower. Also international shares do not have franking credits and therefore may not be as tax effective as dividends paid from Australian companies. International shares offer a far greater range of investment options. International shares offer access to other countries with different economic prospects such as the United States and Europe as well as China and emerging markets. International shares can also provide exposure to industries that may not be well represented in Australia. The greater spread of shares across geographies and industries can result in lower risk to your portfolio because of the diversification. The returns of international assets including shares are also affected by changes in the Australian dollar. Generally, if the Australian dollar strengthens, then returns from international assets are reduced because the currency movement results in a loss when the international asset is converted back to Australian dollars. However when the Australian dollar weakens, returns from international assets are increased because of currency gains.

4 Like Australian shares, the share price movement can be very volatile over short periods of time and it is best to invest in these only if the intention is to stay invested for at least five years. Property There are different types of property investments. An investor can purchases a property or number of properties directly in which case they will be benefit from the rent received by the properties as well as the change in the valuation of the property over time. The returns of these properties will be dependent on the quality of the tenant and the rent paid as well as the location and type of property such as residential, industrial or commercial. An investor can purchase properties directly or via units in a trust that purchases the properties on behalf of investors (these are called unlisted property trusts). Accessing property via a trust often allows the investor the ability to gain exposure to more properties than if they used their investment amount to purchase property themselves. This spread of properties can reduce the overall risk of the property investment. Investors can also gain exposure to property by buying units in a property trust that is listed on the Stock Exchange (listed property trusts). Both unlisted and listed property trusts can borrow money as part of the trust structure and therefore returns to investors will be affected by the borrowings. Borrowing allows the trust to increase their purchases of properties and/or undertake development of properties. Returns to investors are paid after the borrowing costs are repaid. The level of borrowings can also add to the risk of the investment particularly if the valuation of the properties fall or the income generated by the properties is insufficient to pay the interest. Bonds (also called fixed interest) A bond is a tradeable debt security, usually issued by a government, semi-government or corporate body to raise money. Investors in the bond have lent money for which they receive a fixed rate of interest over a set period of time. The bond is repaid with interest on the predetermined maturity date. Some bonds can be traded on the share market. The returns from bonds are based on the fixed rate of interest paid over the term. If the bond is traded the price will be affected by changes to market interest rates. If market interest rates rise, the price of the bond will fall and the investor will have a capital loss which reduces their total return. Conversely if market interest rates fall, the value of the bond will increase meaning that there will be a capital gain that adds to the overall return from the investment. Cash Cash is one of the safest investments. It includes cash in the bank, cash management trusts and even cash in your pocket. Cash returns are based on the official cash or interest rate which is set by the

5 Reserve Bank of Australia as part of its monetary policy. The Reserve Bank changes the official interest rate in order to attempt to control inflation. Managed funds Managed funds are unit trust structures that offer investors exposure to a professionally managed portfolio of assets through a single security. Investors own a proportion of the investment portfolio commensurate with the size of their investment, and are entitled to any profits and distributions, but are also subject to losses should the value of the portfolio decline. The returns of managed funds will be affected by the performance of the underlying asset classes Putting it all together The right investment depends on the individual investor and their needs and circumstances. There are a number of things that each investor has to consider such as their investment time horizon (how long can the money be invested), the level of returns sought and the amount of risk the investor is willing to accept. Investors would be wise to combine asset classes in their portfolio to achieve diversification (that is, not putting all eggs in one basket). It should be remembered that past returns are not a good indicator of future returns and therefore decisions on which asset class to invest in should not be based on historical performance. Last updated 30 July 2015 Market timing Is your investment strategy based on timing the market to invest when markets are high and get out when markets are low? If so, first experience the state of mind of a hypothetical market timer to determine if this really is the best approach to take. Investors often make decisions based on emotions at the time and can then be disappointed when the results are not what they had hoped for. Chances are that we have all experienced some of the reactions portrayed in the chart below. Not only might you relate to this experience, but you may also be able to plot yourself at one of the stages shown. This chart illustrates some of the psychological issues (problems) associated with market timing.

6 Deja vu It can be tempting to switch investments or move to cash in uncertain times but market timing can be fraught with danger. This is due to the forward-looking nature of financial markets coupled with transaction costs and tax-related issues that can detract from your returns. There are risks associated with market timing and your portfolio can suffer if you get the timing wrong. Market timing can be described as the process of positioning a diversified portfolio away from its long term strategic investment allocation for a short to medium term, in an attempt to add extra returns to the portfolio, by taking advantage of better performing investments and/or by avoiding poor performing ones. The following adage sums up our view; "it is not market timing that counts, but rather the amount of time that you are in the market". In the following chart we show the effect on investment returns from Australian shares of missing some of the best trading months between the ten years from July 2005 to June 2015.

7 Number of best Percentage of time months missed out of the market Annualised return Portfolio balance 0 days 0.0% 6.9% $19,568 1 day 0.8% 6.8% $19,287 2 days 1.7% 6.0% $17,968 3 days 2.5% 5.3% $16,757 4 days 3.3% 4.6% $15,672 5 days 4.2% 3.9% $14,696 6 days 5.0% 3.3% $13,830 7 days 5.8% 2.7% $13,079 8 days 6.7% 2.2% $12,373 9 days 7.5% 1.6% $11, days 8.3% 1.1% $11,129 Source: Australian shares (S&P/ASX 300 Accumulation Index) An investor who was invested in the Australian share market for the full period between July 2005 and June 2015 would have achieved annual returns of 6.9 per cent. But had they missed just three of the best trading months in the period, representing just 2.5 per cent of time out of the market, the return would have dropped to around 5.3 per cent per annum. Missing ten of the best trading months during the period, or 8.3 per cent of time out of the market, reduces the annual return on the investment to just 1.1 per cent per annum. In dollar terms, this represents a loss of $8,439 compared to staying invested over the period. The results are illustrated in the graph below:

8 The above example illustrates that one of the biggest risks in attempting to time markets is potentially missing the markets best performing cycles. Broad diversification across asset classes can be an effective way to guard against losses; not risky market timing based strategies. An investor needs to consider the risk of missing out on strong returns from markets as well as the combination of costs and taxes when attempting to time markets. Investing in growth assets like Australian shares requires that a long term investment time horizon be adopted and investors need to accept that the value of their portfolio will fluctuate considerably over short periods of time. Importantly, it is appropriate that investors identify their risk tolerance levels and how this fits with their investment objectives or goals. In particular, you need to consider your risk tolerance or risk profile - this refers to your tolerance for market fluctuations and the trade-off between this and the desire to maximise returns. The ultimate risk of course is the long-term opportunity cost associated with an overly conservative strategy, or one of inferior quality, or poorly implemented. Last updated 30 July 2015 Disclaimer Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.

AON MASTER TRUST. Introduction to investments. aonmastertrust.com.au

AON MASTER TRUST. Introduction to investments. aonmastertrust.com.au AON MASTER TRUST Introduction to investments aonmastertrust.com.au CONTENTS Risk versus return... 3 Asset classes... 4 Defensive and growth asset classes... 5 Asset class performance... 6 Managing risk...

More information

Investment options and risk

Investment options and risk ADF Super Australian Defence Force Superannuation Investment options and Issued 2 June 2016 The information in this document forms part of the Product Disclosure Statement for the Australian Defence Force

More information

Investment options and risk

Investment options and risk Investment options and risk Issued 1 November 2013 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation Scheme (PSS), seventh edition, issued

More information

Managed funds. Plain Talk Library

Managed funds. Plain Talk Library Plain Talk Library Contents Introduction to managed funds 5 What is a managed fund and how does it work? 6 Types of managed funds 12 What are the benefits of managed funds? 15 Choosing a managed fund

More information

Investment Bond. Funds key features. This is an important document. Please keep it safe for future reference.

Investment Bond. Funds key features. This is an important document. Please keep it safe for future reference. Investment Bond Funds key features. This is an important document. Please keep it safe for future reference. 2 WHAT ARE THE FUNDS KEY FEATURES? This document is part of the information we provide you to

More information

Your life your fund REI Super Investment Guide

Your life your fund REI Super Investment Guide Your life your fund REI Super Investment Guide 1 July 2016 CONTENTS 1. Choosing an investment that s right for you: Balancing risk and return > Your risk profile > Where your super s invested 2. Introducing

More information

Fund Fact Sheet. ExxonMobil Savings Plan

Fund Fact Sheet. ExxonMobil Savings Plan Fund Fact Sheet ExxonMobil Savings Plan ExxonMobil Stock When you buy Exxon Mobil Corporation Common Stock (ExxonMobil stock), you become an ExxonMobil shareholder and an owner of the company. As an owner

More information

MLC MasterKey Unit Trust Product Disclosure Statement (PDS)

MLC MasterKey Unit Trust Product Disclosure Statement (PDS) MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take

More information

INVESTING YOUR SUPER. This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015

INVESTING YOUR SUPER. This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015 This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015 INVESTING YOUR SUPER FACT SHEET 5 14 AUGUST 2015 NGS Super offers you flexibility and choice when

More information

7 investments to earn better than bank interest from the stockmarket.

7 investments to earn better than bank interest from the stockmarket. 7 investments to earn better than bank interest from the stockmarket. If low tide on interest rates has left you looking for better returns, the stockmarket may be an alternative. Sentinel Stockbroking

More information

Investing Report. Comparing 10, 20 and 25 year performance of various investments to December 2010 FULL REPORT / JUNE 2011

Investing Report. Comparing 10, 20 and 25 year performance of various investments to December 2010 FULL REPORT / JUNE 2011 Long-Term Investing Report Comparing 10, 20 and 25 year performance of various investments to December 2010 FULL REPORT / JUNE 2011 A research study issued by the ASX and Russell Investments About Us As

More information

BHP Billiton Superannuation Fund

BHP Billiton Superannuation Fund BHP Billiton Superannuation Fund Investment Menu Preparation date 11 May 2016 Issued by the Trustee PFS Nominees Pty Limited (Plum) ABN 16 082 026 480 AFSL 243357 The Fund BHP Billiton Superannuation Fund

More information

03/ 1 JULY 2016 INVESTMENT GUIDE. Investment Guide. Invest wisely in your future

03/ 1 JULY 2016 INVESTMENT GUIDE. Investment Guide. Invest wisely in your future 03/ 1 JULY 2016 INVESTMENT GUIDE Investment Guide Invest wisely in your future Contents 01 02 03 Types of assets Investment options Choosing an investment option 04 06 22 About this Guide This Guide provides

More information

A GUIDE TO AUSTRALIAN FIXED INCOME INVESTING

A GUIDE TO AUSTRALIAN FIXED INCOME INVESTING A GUIDE TO AUSTRALIAN FIXED INCOME INVESTING The Australian fixed income market vs the Australian share market The Australian share market is dynamic. On any given trading day, share prices may move rapidly

More information

INVESTING YOUR SUPER. IMPORTANT INFORMATION. 1 July 2015

INVESTING YOUR SUPER. IMPORTANT INFORMATION. 1 July 2015 YOUR INVESTING SUPER. 1 July 2015 IMPORTANT INFORMATION This information should be read in conjunction with the First Super Product Disclosure Statement (PDS) dated 1 July 2015. You should consider this

More information

Investment options and risk

Investment options and risk Investment options and risk Issued 1 November 2013 The information in this document forms part of the Product Disclosure Statement for the Commonwealth Superannuation Scheme (CSS), sixth edition, issued

More information

Morningstar Category Definitions

Morningstar Category Definitions Morningstar Category Definitions Morningstar Australasia Pty Ltd Disclaimer: 2015 Morningstar, Inc. All rights reserved. The information in this document is the property of Morningstar, Inc. Reproduction

More information

Principles for investment success. We believe you will give yourself the best chance of investment success if you focus on what you can control

Principles for investment success. We believe you will give yourself the best chance of investment success if you focus on what you can control Principles for investment success We believe you will give yourself the best chance of investment success if you focus on what you can control Important information This guide has been produced for educational

More information

Investment Guide. rest.com.au 1300 300 778. Effective 1 October 2015

Investment Guide. rest.com.au 1300 300 778. Effective 1 October 2015 Investment Guide Effective 1 October 2015 The information in this document forms part of the Product Disclosure Statement (PDS) for REST Super, REST Corporate, REST Select and Acumen effective 1 October

More information

SUPER. Investing your. Important Information 1 April Inside:

SUPER. Investing your. Important Information 1 April Inside: Investing your SUPER Important Information 1 April 2015 Inside: > 1: basics > 2: risks > 3: Your investment choices > 4: Unit prices > 5: management The information in this document forms part of the Product

More information

MERCER PORTFOLIO SERVICE MONTHLY REPORT

MERCER PORTFOLIO SERVICE MONTHLY REPORT MERCER PORTFOLIO SERVICE MONTHLY REPORT MAY 206 Mercer Superannuation (Australia) Limited ABN 79 004 77 533 Australian Financial Services Licence # 235906 is the trustee of the Mercer Portfolio Service

More information

Investing Toward Retirement

Investing Toward Retirement ONS Congress 2013 Investing Toward Retirement Janet L Marcantonio, CFP, CRPC Thomas Robinson, CFP Marcantonio Robinson Wealth Advisory Group UBS Financial Services 1 Learning objectives Understand the

More information

Your investment options

Your investment options The information in this document forms part of the Australian Catholic Superannuation and Retirement Fund Superannuation Plan Product Disclosure Statement dated 1 January 2016. If you would like a hard

More information

Investment options and risk

Investment options and risk Investment options and risk Issued 1 July 2015 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation accumulation plan (PSSap), eighth edition,

More information

Investing made easy. A guide to making the most of managed funds

Investing made easy. A guide to making the most of managed funds Investing made easy A guide to making the most of managed funds Contents 1 Investing is easy 2 Managed funds the facts 4 Different types of managed funds 6 Types of investments 10 Investing involves risk

More information

Investment choice. GESB Super and West State Super. Important note. ISSUE DATE: 1 July 2015 PREPARATION DATE: 26 June 2015

Investment choice. GESB Super and West State Super. Important note. ISSUE DATE: 1 July 2015 PREPARATION DATE: 26 June 2015 SUP E R ANNUATION Investment choice GESB Super and West State Super Important note The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each

More information

Investment Options and Risk

Investment Options and Risk Investment Options and Risk Issued 1 July 2013 The information in this document forms part of the Product Disclosure Statement for the Military Superannuation and Benefits Scheme (MilitarySuper), third

More information

Understanding investment concepts

Understanding investment concepts Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published

More information

Investment risk Balancing investment risk and potential reward

Investment risk Balancing investment risk and potential reward Investment risk Balancing investment risk and potential reward This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard Asset

More information

BT Investment Funds. Product Disclosure Statement. Dated 1 July 2013

BT Investment Funds. Product Disclosure Statement. Dated 1 July 2013 BT Investment Funds Product Disclosure Statement Dated 1 July 2013 We recommend that you read this Product Disclosure Statement (PDS) in full before making an investment decision. If you have not received

More information

Our managed funds products are issued by

Our managed funds products are issued by Our managed funds products are issued by 1 According to the Investment and Financial Services Association 1, Australia s first managed funds were introduced in 1954. Since then the industry has grown substantially

More information

What can property offer an institutional investor?

What can property offer an institutional investor? What can property offer an institutional investor? UK property investment briefing (Paper 1) 27 January 2014 Contents 1. A relatively high and stable income return.... 3 2. Volatility... 4 3. Diversification

More information

Asset allocation A key component of a successful investment strategy

Asset allocation A key component of a successful investment strategy Asset allocation A key component of a successful investment strategy This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard

More information

A research study issued by the ASX and Russell Investments. Investing Report FULL REPORT / JUNE 2012

A research study issued by the ASX and Russell Investments. Investing Report FULL REPORT / JUNE 2012 A research study issued by the ASX and Russell Investments Long-Term Investing Report FULL REPORT / JUNE 2012 Helping everybody invest intelligently by offering a deeper insight into investment markets

More information

Spectrum Insights. Bond and stock market around the same size Australian bonds vs Australian stock market

Spectrum Insights. Bond and stock market around the same size Australian bonds vs Australian stock market Market capitalization $b Spectrum Insights Damien Wood, Principal JUNE 9, 2015 Corporate bonds often provides investors with an income stream that is above deposit rates, but less risky than dividends

More information

Funds in Court Information Guide INVESTMENT RISKS

Funds in Court Information Guide INVESTMENT RISKS Funds in Court Information Guide INVESTMENT RISKS NOTE: The information in this document is for information purposes only. The information is not intended to be and does not constitute financial advice

More information

MLC Navigator Access Investment Options Product Disclosure Statement

MLC Navigator Access Investment Options Product Disclosure Statement MLC Navigator Access Investment Options Product Disclosure Statement Preparation date 1 July 2014 Issued by Navigator Australia Limited (NAL) ABN 45 006 302 987 AFSL 236466 This information is general

More information

Super Investment basics

Super Investment basics Super Investment basics grow through life Use this workbook to: + + Do some jargon busting + + Discover the benefits of investing + + Learn about asset classes + + Understand risk and what it means for

More information

Investment Principles

Investment Principles NEWSLETTER Time-Tested Investment Principles Financial markets are not predictable or stable, they constantly evolve. It is for this reason that investors should maintain a sound and disciplined approach

More information

Fact sheet Demystifying fixed income investments

Fact sheet Demystifying fixed income investments Fact sheet Demystifying fixed income investments Super fund members as well as individual investors have a huge range of options to choose from for the investment of their savings. Fixed income investments

More information

An IFSA guide to understanding managed investments

An IFSA guide to understanding managed investments Getting the edge with managed funds An IFSA guide to understanding managed investments MAY 2007 >> PAGE 1 OF 6 Over nine million Australians have over $1 trillion invested in managed investments. This

More information

Basic Investment Course

Basic Investment Course Page 1: Basic Investment Course Basic Investment Course brought to you by Standard Bank Online Share Trading Unit 3: Why should I invest in shares? www.securities.co.za Page 2: Basic Investment Course

More information

FirstChoice Employer Super

FirstChoice Employer Super FirstChoice Employer Super Investment Options Menu Issue No 2014/1, dated 19 May 2014 Issued by: Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 MySuper Authorisation Identifier

More information

Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor. October, 2008

Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor. October, 2008 Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor October, 2008 1 Market Ups and Downs Recent news is full of anxiety-causing developments: Credit crunch Bank

More information

Module 1 Introduction to ETFs

Module 1 Introduction to ETFs Module 1 Introduction to ETFs Course #: Title Topic 1: Big picture investing... 3 Which stock to buy?... 3 Why take a big picture approach?... 3 How can you invest in the market?... 4 Topic 2: What are

More information

AMP Capital Investment Funds

AMP Capital Investment Funds AMP Capital Investment Funds Investment Statement Dated: 18 September 2015 Issued by AMP Investment Management (N.Z.) Limited Important information (The information in this section is required under the

More information

1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS

1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS 1 JULY 2015 Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS Your investment choice TWUSUPER was established in 1984 as the Industry SuperFund for people in transport and logistics. By understanding

More information

Fund guide. Prudence Bond Prudence Managed Investment Bond

Fund guide. Prudence Bond Prudence Managed Investment Bond Fund guide Prudence Bond Prudence Managed Investment Bond Introduction to this guide We know that choosing which fund may be best for you isn t easy there are many options and everyone is different so

More information

State Street Global Equity Fund ARSN 162 547 784 APIR SST0050AU

State Street Global Equity Fund ARSN 162 547 784 APIR SST0050AU Product Disclosure Statement State Street Global Equity Fund ARSN 162 547 784 APIR SST0050AU Issued 6 October 2015 by State Street Global Advisors, Australia Services Limited ABN 16 108 671 441, AFSL 274900

More information

Investment. Home Insurance. Investment fundamentals. Your guide to investing in any market

Investment. Home Insurance. Investment fundamentals. Your guide to investing in any market Investment Home Insurance Investment fundamentals Your guide to investing in any market Your guide to investing in any market Investment markets are complex and may appear difficult to understand for the

More information

Understanding Irish Real Estate Investment Trusts. For Financial Advisor Use Only

Understanding Irish Real Estate Investment Trusts. For Financial Advisor Use Only Understanding Irish Real Estate Investment Trusts For Financial Advisor Use Only What is a Real Estate Investment Trust (REIT)? A REIT is a public listed company which has as its main activity the ownership

More information

we make it easy for you

we make it easy for you Investment Guide PDS Supplement we make it easy for you Dated 10 November 2015 CARE Super Pty Ltd (Trustee) ABN 91 006 670 060 AFSL 235226 CARE Super (Fund) ABN 98 172 275 725 helping you to achieve your

More information

STATE SUPER INVESTMENT FUND CLASS A

STATE SUPER INVESTMENT FUND CLASS A STATE SUPER INVESTMENT FUND CLASS A Product Disclosure Statement Date of Issue 1 July 2014 State Super Financial Services Australia Limited ABN 86 003 742 756 Australian Financial Services Licence No.

More information

ORBIS SICAV ORBIS SICAV. Introductory ORBIS BOOKLET GLOBAL BALANCED FUND

ORBIS SICAV ORBIS SICAV. Introductory ORBIS BOOKLET GLOBAL BALANCED FUND ORBIS SICAV ORBIS SICAV Introductory BOOKLET ORBIS GLOBAL BALANCED FUND ORBIS SICAV Société d Investissement à Capital Variable, R.C.S. Luxembourg B 90 049 Registered Office Orbis SICAV 31, Z.A. Bourmicht

More information

FirstChoice. Investment Options Menu. Investments Personal Super Pension

FirstChoice. Investment Options Menu. Investments Personal Super Pension FirstChoice Investment Options Menu Investments Personal Super Pension Issue No 2013/1, dated 11 June 2013 Issued by: Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 This

More information

Understanding investment concepts Version 5.0

Understanding investment concepts Version 5.0 Understanding investment concepts Version 5.0 This document provides some additional information about the investment concepts discussed in the SOA so that you can understand the benefits of the strategies

More information

PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES

PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES FOR GROWTH OR INCOME INVESTORS ASSET ALLOCATION PRINCIPAL ASSET ALLOCATION FOR GROWTH OR INCOME INVESTORS Many ingredients go into the making of an effective investment

More information

REIT QUICK FACTS GUIDE

REIT QUICK FACTS GUIDE REIT QUICK FACTS GUIDE FOR FINANCIAL ADVISORS Guidelines for Strategic Portfolio Diversification FINRA-Reviewed Fact Sheets on Stock Exchange-Listed Equity REITs Additional References for Advisors THERE

More information

Investment Guide. About this document. Contents. This document explains: Date of issue: 5 October 2015. mtaasuper.com.audate.

Investment Guide. About this document. Contents. This document explains: Date of issue: 5 October 2015. mtaasuper.com.audate. Investment Guide Date of issue: 5 October 2015 mtaasuper.com.audate Phone: 1300December 362 415 2014 of issue: The information in this document forms part of the Product Disclosure Statement for MTAA Super

More information

This guide contains important information about your NSF Super investment options.

This guide contains important information about your NSF Super investment options. Investment guide Personal Division This guide contains important information about your NSF Super investment options. You should read it to help you make an informed investment choice. Contents 1. Investment

More information

Summary Prospectus April 25, 2016. JNL Institutional Alt 50 Fund Class A

Summary Prospectus April 25, 2016. JNL Institutional Alt 50 Fund Class A Summary Prospectus April 25, 2016 JNL Institutional Alt 50 Fund Before you invest, you may want to review the Fund s Prospectus, which contains more information about the Fund and its risks. You can find

More information

PORTFOLIO BOND INCLUDING DISCOUNTED GIFT PORTFOLIO BOND FUNDS KEY FEATURES. This is an important document. Please keep it safe for future reference.

PORTFOLIO BOND INCLUDING DISCOUNTED GIFT PORTFOLIO BOND FUNDS KEY FEATURES. This is an important document. Please keep it safe for future reference. PORTFOLIO BOND INCLUDING DISCOUNTED GIFT PORTFOLIO BOND FUNDS KEY FEATURES. This is an important document. Please keep it safe for future reference. 2 PORTFOLIO BOND INCLUDING DISCOUNTED GIFT PORTFOLIO

More information

National Margin Lending. Make your investment portfolio work for you

National Margin Lending. Make your investment portfolio work for you National Margin Lending Make your investment portfolio work for you Contents What is Margin Lending? 3 Why choose National Margin lending? 5 Why gear? 6 How much can you borrow with National Margin Lending?

More information

ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS)

ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS) ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF (ASX CODE: ZYUS) DIVERSIFY WITH HIGH YIELDING U.S. EQUITIES 1 WHAT IS ANZ ETFS S&P 500 HIGH YIELD LOW VOLATILITY ETF? AT A GLANCE Benchmark S&P 500 Low Volatility

More information

Online Investments. Our Fund Range and Investments

Online Investments. Our Fund Range and Investments Online Investments Our Fund Range and Investments Why is it important to read this document? This document explains the funds available for you to invest in through our Investment ISA, which is a Stocks

More information

Funds. All-in-one portfolios built using Vanguard s low-cost index funds

Funds. All-in-one portfolios built using Vanguard s low-cost index funds Investing The case made for index simple: fund Vanguard investing for LifeStrategy UK investors Funds All-in-one portfolios built using Vanguard s low-cost index funds The value of investments, and the

More information

Invest in your future

Invest in your future Invest in your future Investing, and your Pensions NO BETTER TIME THAN THE PRESENT - Investing, and Your Pension The sooner you start investing, the better off you will be. Taking an early interest in

More information

Structured Products. Designing a modern portfolio

Structured Products. Designing a modern portfolio ab Structured Products Designing a modern portfolio Achieving your personal goals is the driving motivation for how and why you invest. Whether your goal is to grow and preserve wealth, save for your children

More information

Guide to Building Your Wealth. 1. What affects the value of money?

Guide to Building Your Wealth. 1. What affects the value of money? Guide to Building Your Wealth 1. What affects the value of money? Money has a tendency to lose its value over time because the price of goods and services usually goes up. This is called inflation. Here

More information

Mutual Funds Basic Information About Mutual Funds

Mutual Funds Basic Information About Mutual Funds Saskatchewan Securities Commission Mutual Funds Basic Information About Mutual Funds The Saskatchewan Securities Commission regulates how securities are sold. Securities are investments such as shares,

More information

SFDCP TARGET DATE FUND PORTFOLIO SUMMARY: January 29, 2016

SFDCP TARGET DATE FUND PORTFOLIO SUMMARY: January 29, 2016 SFDCP TARGET DATE FUND PORTFOLIO SUMMARY: January 29, 2016 SFDCP Target Date Funds Overview SFDCP Target Date Funds (each, a Fund and collectively the Funds or the SFDCP Target Date Funds ) were developed

More information

Investment Options and Risk Issued 1 March 2013

Investment Options and Risk Issued 1 March 2013 Options and Risk Issued 1 March 2013 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation accumulation plan (PSSap), fifth edition, issued

More information

Your investment options explained

Your investment options explained Your investment options explained for the Plum Superannuation Fund Issued by the Trustee: PFS Nominees Pty Ltd ABN 16 082 026 480 AFSL 243357 Fund: Plum Superannuation Fund ABN 20 339 905 340 Administrator:

More information

Issued ₁ July ₂₀₁₅. AMP Growth Bond. Product disclosure statement. This document is issued by AMP Life Limited ABN 84 079 300 379, AFSL No. 233671.

Issued ₁ July ₂₀₁₅. AMP Growth Bond. Product disclosure statement. This document is issued by AMP Life Limited ABN 84 079 300 379, AFSL No. 233671. Issued ₁ July ₂₀₁₅ AMP Growth Bond Product disclosure statement This document is issued by AMP Life Limited ABN 84 079 300 379, AFSL No. 233671. Contents About the AMP Growth Bond Features at a glance

More information

The information in this document forms part of the Triple S Product Disclosure Statement dated 1 July 2016

The information in this document forms part of the Triple S Product Disclosure Statement dated 1 July 2016 > Understanding your in super doesn t have to be hard. You don t need to be a financial whiz to make it work for you! You just need to understand your options and how you can make the most of them. This

More information

Is your. potential? Right Strategy.

Is your. potential? Right Strategy. Is your SMSF working to its full potential? Right Strategy. Right Time. While managing your own super provides investment flexibility and control, the biggest challenge is ensuring the decisions you make

More information

FIRSTCHOICE INVESTMENT OPTIONS MENU

FIRSTCHOICE INVESTMENT OPTIONS MENU FIRSTCHOICE INVESTMENT OPTIONS MENU Investments Personal Super Pension Issue No 2015/1, dated 18 May 2015 Issued by: Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 This

More information

Advantages and disadvantages of investing in the Stock Market

Advantages and disadvantages of investing in the Stock Market Advantages and disadvantages of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money.

More information

Building an Investment Strategy

Building an Investment Strategy Building an Investment Strategy Building an investment strategy that meets your risk tolerance and investment objectives is critical to successfully preparing for retirement. There are three key steps

More information

Section Heading. Passive IRIS Individual Retirement Investment Strategy

Section Heading. Passive IRIS Individual Retirement Investment Strategy Section Heading Passive IRIS Individual Retirement Investment Strategy 1 Contents Passive IRIS at a Glance 1 A Lifestyle Investment Strategy 2 Introducing Passive IRIS 4 A straightforward approach to retirement

More information

Your Window on Investing

Your Window on Investing Your Window on Investing Diversification Your Best Defence If you pay attention to the financial media, investment is all about shares. But the bond market is just as important. If shares are the sword

More information

The Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund.

The Pinnacle Funds. Simplified Prospectus. December 11, 2009 Class A and Class F units and Class I units where noted. Money Market Fund. The Pinnacle Funds Simplified Prospectus December 11, 2009 Class A and Class F units and Class I units where noted Money Market Fund Pinnacle Short Term Income Fund Bond Funds Pinnacle Income Fund Pinnacle

More information

RISKS IN MUTUAL FUND INVESTMENTS

RISKS IN MUTUAL FUND INVESTMENTS RISKS IN MUTUAL FUND INVESTMENTS Classification of Investors Investors can be classified based on their Risk Tolerance Levels : Low Risk Tolerance Moderate Risk Tolerance High Risk Tolerance Fund Classification

More information

ASB Securities. ASB Margin Lending

ASB Securities. ASB Margin Lending ASB Securities ASB Margin Lending 2 Contents 01 ASB Margin Lending Widen your investment portfolio How does it work? 02 Why use Margin Lending? 03 The ASB Securities Margin Lending Service 04 The risk/reward

More information

ASFA Policy and Industry Practice

ASFA Policy and Industry Practice ASFA Policy and Industry Practice Challenges of Financing Infrastructure ASFA Paper May 2011 Association of Superannuation Funds of Australia ASFA Secretariat Level 6 66 Clarence Street Sydney NSW 2000

More information

ST. JAMES S PLACE INTERNATIONAL INTERNATIONAL INVESTMENT BOND

ST. JAMES S PLACE INTERNATIONAL INTERNATIONAL INVESTMENT BOND INTRODUCING THE ST. JAMES S PLACE INTERNATIONAL INTERNATIONAL INVESTMENT BOND THE ST. JAMES S PLACE PARTNERSHIP The St. James s Place Partnership is an elite group, made up of many of the most experienced,

More information

asset classes Understanding Equities Property Bonds Cash

asset classes Understanding Equities Property Bonds Cash NEWSLETTER Understanding asset classes High return Property FIND OUT MORE Equities FIND OUT MORE Bonds FIND OUT MORE Cash FIND OUT MORE Low risk High risk Asset classes are building blocks of any investment.

More information

A BEGINNERS GUIDE TO INVESTING IN PRECIOUS METALS

A BEGINNERS GUIDE TO INVESTING IN PRECIOUS METALS A BEGINNERS GUIDE TO INVESTING IN PRECIOUS METALS FIRST TIME INVESTORS GUIDE Dear Investor Welcome to the ABC Bullion first time investors guide. For thousands of years, people have turned to gold and

More information

MERCER SUPER INVESTMENT TRUST

MERCER SUPER INVESTMENT TRUST MERCER SUPER INVESTMENT TRUST PRODUCT DISCLOSURE STATEMENT 21 AUGUST 2014 Issued by Mercer Investments (Australia) Limited (MIAL), ABN 66 008 612 397, Australian Financial Services Licence #244385, as

More information

INVESTMENT. Understanding your investment in super doesn t have to be hard. You don t need to be a financial whiz to make it work for you!

INVESTMENT. Understanding your investment in super doesn t have to be hard. You don t need to be a financial whiz to make it work for you! 1 Understanding your investment in super doesn t have to be hard. You don t need to be a financial whiz to make it work for you! You just need to understand your options and how you can make the most of

More information

INVESTING FOR YOUR FINANCIAL FUTURE

INVESTING FOR YOUR FINANCIAL FUTURE INVESTING FOR YOUR FINANCIAL FUTURE Saving now, while time is on your side, can help provide you with freedom to do what you want later in life. INVESTING FOR YOUR FINANCIAL FUTURE YOUR FINANCIAL FUTURE

More information

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?

Investment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income? Fixed income investments make up a large proportion of the investment universe and can form a significant part of a diversified portfolio but investors are often much less familiar with how fixed income

More information

Guide to mutual fund investing. Start with the basics

Guide to mutual fund investing. Start with the basics Guide to mutual fund investing Start with the basics Pursue your financial goals Why do you invest? For a rainy day? A secure retirement? Funding a college tuition? Having a specific goal in mind will

More information

Mutual Funds Made Simple. Brighten your future with investments

Mutual Funds Made Simple. Brighten your future with investments Mutual Funds Made Simple Brighten your future with investments About Invesco Aim When it comes to investing, your sights are set on a financial summit a college diploma, new home or secure retirement.

More information

Building your investment portfolio. Plain Talk Library

Building your investment portfolio. Plain Talk Library Building your investment portfolio Plain Talk Library Contents Building your investment portfolio 1 Planning your investment strategy 3 Major asset classes 4 Asset class attributes 7 Beware of investment

More information

Sources of return for hedged global bond funds

Sources of return for hedged global bond funds Research commentary Sources of return for hedged global bond funds August 2012 Author Roger McIntosh Executive summary. The recent results in key bond market indices demonstrate the importance of a strategic,

More information

TOP 5 SHORT-TERM INVESTMENTS

TOP 5 SHORT-TERM INVESTMENTS INVESTING: MAKING YOUR DOLLARS WORK FOR YOU TOP 5 SHORT-TERM INVESTMENTS A good financial strategy includes choosing a time frame for your various investments. Long-term investments to finance such projects

More information

Mutual Funds in Pakistan

Mutual Funds in Pakistan Mutual Funds in Pakistan Investors Education Seminar arranged by SECP and ICAP held on 29th January 2015 Presented By First Capital Investments Limited Definition of Mutual Fund A mutual fund is a collective

More information

MACQUARIE LIFETIME INCOME GUARANTEE POLICY

MACQUARIE LIFETIME INCOME GUARANTEE POLICY MACQUARIE LIFETIME INCOME GUARANTEE POLICY series 1: Product disclosure statement issued 8 march 2010 Important NOTICE This Product Disclosure Statement ( PDS ) is dated 8 March 2010 and together with

More information