There are three guiding principles that underpin the investment philosophy:
- Asset returns vary depending on market environment Our approach is to identify and respond to favourable and unfavourable market environments
- Total portfolio risk is critical for outcome-orientated investors We attempt to sit out the most extreme periods of market volatility by significantly reducing equity exposure and make prompt, meaningful asset allocation changes
- Flexible Asset Allocation We adopt a framework with wide asset allocation ranges as this has the greatest impact to portfolio outcomes
Flexibly managed multi-asset funds play an important role in portfolios as the underlying investments can adapt to the prevailing market environment to better meet investor objectives.
The Multi Asset Builder Fund has been designed to maximise opportunities whilst managing risk to weather periods of volatility, with the goal of targeting a smoother return path. Investments may include Australian and international equities, fixed income and cash allocations, alternatives, such as property and futures, and a range of derivatives for currency and risk management.