Sestante ESG Focus Dynamic Balanced Portfolio

INVESTOR SUITABILITY

This portfolio may suit ESG aware investors seeking a diversified portfolio with exposure to growth and defensive assets, seeking moderate growth over the investment timeframe with a moderate level of income and accept a moderate degree of volatility with relatively high exposure to growth assets.

INVESTMENT PHILOSOPHY

AZ Sestante portfolios are designed to meet specific risk and return objectives in line with client needs and aim to utilise proven portfolio construction capabilities and high-quality investment managers to ensure consistent 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 utilise 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. 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.

ASSET ALLOCATION

Australian Shares: 12.5% – 37.5% (Min % – Max %)
International Shares: 12.5% – 37.5%
Property & Infrastructure: 0.0% – 32.50%
Australian Fixed Interest: 3.5% – 23.5%
International Fixed Interest: 3.5% – 23.5%
Alternatives: 0.0% – 16.5%
Cash: 2.0% – 25.00%

Investment Objective

To deliver outperformance of the RBA Cash Rate +3.5% p.a. after fees over a rolling 6-year period.

Investment style

Active

Stadard risk measure

Medium

Suggested time frame

6 years

Target returns

RBA Cash Rate +3.5% p.a.

Growth / Defensive Split

70% Growth / 30% Defensive