sign in sign up
<<
Home , Janus Henderson

Elston Conservative Model Portfolio

August 2021

Key Information

Investment Manager Elston Pty Ltd Number of Holdings 20-40 Asset Class Mixed Asset Minimum Investment 3 Years Horizon Investment Style Active / Style Neutral Management Fee 0.40-0.48% Benchmark The Composite Benchmark is an index calculated as the weighted average of the indices selected as benchmarks for each asset class Launch Date 03/10/2012

Asset Allocation Exposure Investment Objective

The aim of the portfolio is to outperform the Australian Equities 18.00% Elston Composite Conservative Index, over International Equities 6.00% rolling five-year periods, after fees Global Listed 3.00% Infrastructure Investment Strategy¹ Australian Fixed Interest 41.60% An actively managed diversified portfolio of International Fixed 22.40% securities across both growth asset classes such Interest as Australian and international equities, Cash 6.00% property and infrastructure; and defensive Listed Property 3.00% oriented asset classes, such as cash and fixed interest securities. In general, the portfolio will Top Portfolio Holdings¹ have a long-term average exposure of around 30% in growth assets and 70% in defensive JH TACTICAL INCOME FUND 22.40% assets, however the allocations will be actively MACQUARIE INCOME OPPS 22.40% managed within the allowable ranges depending on market conditions. ARDEA REAL OUTCOME FUND 19.20% 4D GLOBAL INFRASTRUCTURE 3.00% Designed for Investors Who TACTICAL CASH - BETASHARES AUSTRALIAN HIGH The portfolio is designed for investors seeking: 3.00% INTEREST CASH ETF - long term capital growth above inflation; - tax effective income growth; VANECK AUSTRALIAN PROPERTY ETF 3.00% - a non-index weighted portfolio construction; AB GLOBAL EQUITY FUND 1.95% and, - a minimum investment timeframe of three VANGUARD MSCI INT. ETF 1.35% years. ANZ BANKING GROUP LIMITED 1.13% BANKING CORP 1.13% Investor Philosophy The Elston Asset Management investment Platforms Availability² philosophy incorporates the following values: - Preservation of capital HUB24 0.41% - Long term focus - Value and growth - Genuine diversity - Liquidity - After tax management Elston Conservative Model Portfolio

Growth of $100,000 since inception³ Snapshot of the Month

$175000 − The S&P/ASX 300 Accum. Index increased +2.6% while the MSCI ACWI Ex NR Index (A$) finished +3.1% higher. − The A$ depreciated -0.6% against the USD while $150000 on a trade-weighted basis, it declined by -0.6%. − The Bloomberg AusBond Composite 0-5Yr TR Index finished flat ~0.0%, while the Barclays Global Aggregate TR Hedged Index finished -0.2% lower. $125000 − The best performing sectors domestically were Information Technology (+17.0%), Consumer Staples (+6.9%) and Health Care (+6.8%), while the worst performers were Utilities (+1.0%), Energy (-3.9%) and $100000 Materials (-7.3%). 10/12 01/15 04/17 07/19 08/21 − The best-performing in the S&P/ASX 100 Powered by data from FE fundinfo were WiseTech Global (+57.0%), (+39.2%) and Domino’s Pizza (+35.2%). The worst performers Conservative Model Portfolio Benchmark were (-15.7%), (-15.0%) and BHP Group (-14.7%). − Developed markets (MSCI DM +2.7%) advanced Performance YTD 1 Yr 3 Yr 5 Yr 7 Yr ITD for a 7th consecutive month, outperforming their Emerging counterparts (MSCI EM +2.3%). Despite the Conservative Model Portfolio 4.60% 9.15% 4.41% 5.00% 5.01% 6.13% continued spread of the Delta variant, the bellwether S&P 500 (+3.0%) and STOXX 600 (+2.2%) Benchmark 5.01% 8.32% 5.16% 5.20% 4.98% 5.56% recorded solid gains with both indices now up ~20% YTD. Within the US, investor appetite was supported by a dovish speech at Jackson Hole from Fed Chair Portfolio update Powell that served to allay tapering concerns, along with signs of progress on the Biden administration's economic agenda with the Senate passing the − Portfolio changes for the month were limited to re-weightings, with the bipartisan infrastructure deal that includes $550bln allocation to Westpac, Woodside and all reduced while , in new investment. With another positive month for Endeavour Group, , and WiseTech were all increased. European equities, the region recorded its longest − The model portfolio (+1.3%) outperformed its benchmark (+0.9%), primarily winning run in over eight years. Gains were driven due to the Australian equity component. by a positive earning season and better than − The Australian equity component (+4.7%) outperformed its benchmark expected economic data (PMIs) that helped ease (+2.3%), driven by selection. An underweight to Materials and concerns over a material slowdown in economic overweight Consumer Staples added to relative performance while being growth. Emerging markets overcame a combination overweight Energy and underweight Health Care detracted – the net result of continued crackdowns on various 'non-social' was broadly flat. In terms of stock selection, positions within the Information industries by Chinese regulators, Delta concerns and Technology and Material sectors were the primary contributors to the a stronger US dollar to regain some of the ground outperformance. The top three contributors were the position in WiseTech lost in July. Global, being underweight BHP and from not owning Fortescue Metals. The − The domestic market delivered its 11th consecutive largest detractors were from not owning Afterpay or CSL and the position in monthly gain, a run not seen since 1943. Another Woodside. strong reporting season helped drive the market − Despite all underlying holdings recording positive returns, the international higher with dividends a bright spot - a record equity component (+3.0%) marginally underperformed its benchmark (+3.1%). $31bln in dividend payouts (plus an additional $15bln The UBS Emerging Market Equity Fund (+3.2%), Franklin Global Growth Fund in buybacks) suggest Australian corporates have (+3.6%), and GQG Partners Global Equity (+3.8%) all outperformed, while the come through the pandemic in great shape. Overall index tracking Vanguard MSCI Intl ETF (+3.1%) performed inline. The AB results were slightly above expectations with the Global Equities (+1.6%) was the laggard. market recording +26.5% earnings growth for FY21 - − Within the global listed infrastructure component, the 4D Global this was however skewed by Resources (higher Infrastructure Fund (+1.7%) underperformed the benchmark (+2.3%). commodity prices) and Banks (lower bad debts). − The fixed interest component (~0.0%) finished flat for the month, slightly Unsurprisingly given ongoing uncertainty related to outperforming its benchmark (-0.1%) as outperformance by the Macquarie COVID-19 disruptions, corporate guidance was not Income Opportunities Fund (+0.3%) was partially offset by both the Janus as strong as previous reporting seasons and Henderson Tactical Income Fund (-0.1%) and Ardea Real Outcome Fund consensus expectations for FY22e and FY23e have (-0.3%). The performance of the Macquarie fund was chiefly driven by been pared back slightly. running yield on credit holdings and currency option positions, which were implemented as an alternative to interest rate duration to provide downside protection.

1 This information has been prepared for the purpose of providing general information and may differ between platforms. Please refer to the appropriate platform PDS for further information. 2 Other fees and costs apply. To understand all the fees payable you must refer to the appropriate platform PDS. 3 Inception to date is 03/10/2012. The table above sets out the investment performance returns (AFTER fees of 0.41%p.a., but BEFORE administration fees and taxes) for the managed portfolio. The performance returns have been calculated on a daily basis taking into account brokerage costs, and are accumulated for the relevant period. Returns from inception are shown as annualised if the period is over 1 year, or as total returns otherwise. Past performance is not a reliable indicator of future performance returns. Returns may differ between platforms due to fees or underlying holdings, please refer to the appropriate platform PDS for further information. The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.