We Deal With Investment Uncertainty
- Aims to provide an additional layer of protection on top of the cyclical analysis used
- Objective is to further soften the portfolio impacts of significant and prolonged cyclical downturns
- Reviewed on a weekly and sometimes daily basis
The strategy is applied to the following portfolios:
- Multi-Asset Growth Portfolio and Protected High Income Growth Portfolio
Protection is provided in either of two ways depending on the market conditions and volatility at the time;
- Utilising index options with the aim to help offset losses in possible downturns and possible loss of opportunity in the early stages of a recovery when the portfolio may have a high exposure to cash
- Allocating an amount to short funds which are listed on the ASX. These funds are utilised to profit from share market downturns with the primary aim of offsetting portfolio losses.
If you are allocating money in the Superannuation environment then the strategy and level of protection depends on whether you have a Self-Managed Superannuation Fund (SMSF) or a retail Superannuation product.
SMSF and Ordinary Monies
- Both the index options and listed short funds can be applied with no restrictions
Retail Superannuation Fund
- Options cannot be applied
- The listed short funds have restrictions on the amounts that can be purchased