The model invests in a portfolio of ASX listed debt and shorter dated hybrid securities, debt based ETFs and debt specialist managed funds. These products offer potential diversification benefits to both Australian equities and cash or term deposits. The model’s return will be generated from a combination of interest payments and capital growth (realised and unrealised) from an actively managed portfolio strategy. The Shaw Debt Income Portfolio seeks to provide investors with a predictable level of income whilst minimising risk to capital.

The model manager aims to achieve the investment objectives via a qualitative and quantitative investment process. Key criteria and areas of focus are:

• Credit quality of the issuer
• Sector/Industry
• Call dates and final maturity details
• Structure of instrument
• Timing and composition of cash flows
• Relative valuation of sector as a whole and between relevant securities, including the inclusion of new issues.
• Liquidity and potential changes in liquidity

The portfolio will be diversified across the above criteria. A key focus of the portfolio will be the mix of fixed and floating rate exposure in order to meet the portfolios’ objectives. The portfolio will be monitored against the manager’s expectations of equity returns, credit market implied volatilities and underlying interest rates in order to ensure it is invested across a range of market cycles to meet its return objective, while adhering to the risk tolerances set. The model manager has access to new issues of listed debt securities and is able to include these in the portfolio as it deems appropriate.

• Seek a sustainable income stream over a 3 year + time frame, with a lower risk of loss than equities, and a higher rate of return than cash like investments.
• Focus on minimising risk to capital and low volatility of returns.

Debt and hybrid securities 70% – 100%

Cash 0% – 100%

Investment Fee 0.00% p.a.
Indirect Cost Ratio (approx) 0.25% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.09% p.a.
TOTAL COSTS (estimate) 0.34% p.a.

The model aims to invest in a portfolio of ASX listed debt and preference securities that offer diversification benefits to both Australian equities and cash or term deposits. The model’s return will be generated from a combination of cash (interest payments and dividends), franking credits and capital growth (realised and unrealised) from an actively managed portfolio strategy. The Shaw Hybrid Income Portfolio seeks to provide investors with a predictable level of income whilst minimising risk to capital.

The model manager aims to achieve the investment objectives via a qualitative and quantitative investment process. Key criteria and areas of focus are:

• Credit quality of the issuer
• Sector/Industry
• Call date, conversion dates and final maturity details
• Structure of instrument
• Timing and composition of cash flows
• Relative valuation of sector as a whole and between relevant securities, including the inclusion of new issues.
• Liquidity and potential changes in liquidity

The portfolio will be diversified across the above criteria. The portfolio will be monitored against the manager’s expectations of equity returns, credit market implied volatilities and underlying interest rates in order to ensure it is invested across a range of market cycles to meet its return objective, while adhering to the risk tolerances set. The model manager has access to new issues of debt and preference securities and is able to include in the portfolio as it deems appropriate. The model manager’s institutional market experience with this asset class brings specialist knowledge to pricing and liquidity. Active management of the portfolio will take advantage of relative mispricing between securities and the asset class as a whole, while taking into consideration the impact of any micro and macroeconomic factors. The ability to lock in gains will be a key feature of the strategy in achieving its objectives.

Seek a sustainable income stream (inclusive of franking credits) over a 3 year + time frame, with a lower risk of loss than equities, and a higher rate of return than cash like investments.

Listed Australian hybrid securities 0% – 100%

Listed debt securities  0% – 80%

Cash  0% – 20%

Investment Fee 0.00% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.04% p.a.
TOTAL COSTS (estimate) 0.04% p.a.

The primary objective of the Shaw Australian Equity Income (Large Cap) Portfolio is to provide a regular and sustainable fully franked dividend income stream over the medium term (3–5 years). It achieves this by investing in a portfolio of large-cap Australian listed companies and managed funds. Although the focus is yield generation, the investment process and risk management aims to ensure that risk to capital is minimised with the goal of some capital appreciation via both longer term price appreciation and actively locking in gains as deemed appropriate to the objectives.

The investment process combines quantitative and qualitative criteria and analysis to identify stocks and strategies which have a relatively high dividend paying capability, and are likely to produce above average earnings growth with positive valuation characteristics.
The portfolio construction is based on macro-economic and thematic views of Shaw and Partners’ Research in order to best meet the risk and return objectives of the investment strategy. Continual assessment and risk management of bottom-up and top-down parameters is a core component of the model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives. The investment process takes into consideration the risk around companies growing/maintaining their dividend characteristics with the result that this portfolio aims for a higher dividend yield than that of the broader market. The portfolio managers however manage the capital value of the portfolio to minimise the risk of the portfolio failing to achieve its risk and return objectives.

• Seek franked dividend income as the primary objective from an Australian equities portfolio and some capital appreciation
• Have an investment horizon of three years or more
• Accept the risk of share price volatility

Australian Equities  80% – 100%

Cash 0% – 20%

Investment Fee 0.00% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.04% p.a.
TOTAL COSTS (estimate) 0.04% p.a.

The objective of the Shaw Australian Equity (Large Cap) Core Portfolio is to provide regular income, capital appreciation and out performance of the S&P/ASX 100 Accumulation Index over the medium term (3–5 years) through investment in large cap shares listed in Australia.

Shaw and Partners’ Investment Process combines quantitative and qualitative criteria and analysis to identify stocks likely to produce above average earnings growth with positive valuation characteristics. The portfolio construction is based on macro-economic and thematic views of Shaw and Partners’ Research in order to best meet the risk and return objectives of the investment strategy. Continual assessment and risk management of bottom-up and top-down parameters is a core component of the Model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives. The Investment Process takes into consideration the yield and capital growth objectives of the portfolio and ensures that both are managed simultaneously to ensure that the portfolio is not overly skewed to any style or thematic that would increase the risk of the portfolio failing to meet its objectives.

• Seek exposure to an Australian share portfolio that provides a franked income stream and capital appreciation;
• Have an investment horizon of three years or more
• Accept the risk of share price volatility.

Australian Equities  90% – 100%

Cash 0% – 10%

Investment Fee 0.00% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.02% p.a.
TOTAL COSTS (estimate) 0.02% p.a.

The primary objective of the Shaw Australian Equity (Large Cap) Growth Portfolio is to provide a level of capital appreciation over the   longer term  (5–7 years). The portfolio is tilted towards stocks that have superior earning growth capacity and focus is on the total return of each stock rather than the dividend income as the prime objective. 

The investment process combines quantitative and qualitative criteria and analysis to identify stocks which have a favourable outlook are likely to produce above average earnings growth with positive valuation characteristics. The portfolio construction is based on macro-economic and thematic views of Shaw and Partners’ Research in order to best meet the risk and return objectives of the investment strategy. Continual assessment and risk management of bottom-up and top-down parameters is a core component of the model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives. The investment process takes into consideration the primary objective of capital growth. Although the portfolio will generate income, income focused stocks will be included if their total return criteria fits the portfolios objective.  Volatility of returns will be managed with the objective of a lower standard deviation of returns than the benchmark index.

• Seek long term capital growth as the primary objective from an Australian equities portfolio and some income
• Those investors in the accumulation phase
• Have an investment horizon of five years or more
• Accept the risk of share price volatility

Australian Equities  80% – 100%

Cash 0% – 20%

Investment Fee 0.00% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.01% p.a.
TOTAL COSTS (estimate) 0.01% p.a.

The Shaw Australian Equity (Small and Mid-Cap) Growth Portfolio is allocated to managers who specialise in identifying small and mid-sized stocks that have superior earning growth capacity and have a focus on the total return of each stock rather than simply dividend income. It aims to invest in managers who can exhibit a sustainable process to outperform the S&P/ASX Small Ordinaries index on a risk-adjusted basis after fees.

The model will invest into a range of mostly active managed funds that focus on Australian mid and small capitalised companies listed on the ASX. Shaw’s investment process combines quantitative and qualitative criteria and analysis to identify fund managers who are considered to outperform in excess of the benchmark on a risk-adjusted basis after fees. The model will allocate to managers who are deemed to have complementary investment philosophies, management strategies and investment universes to reduce the probability of overlap and lack of diversification.

• Seek long term capital growth as the primary objective from and Australian equities portfolio and some income
• Those investors in the accumulation phase
• Have an investment horizon of five years or more
• Accept the risk of share price volatility.

Australian Equities and Funds 80% – 100%

Cash 0% – 20%

Investment Fee 0.00% p.a
Indirect Cost Ratio (approx) 3.13% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.13% p.a.
TOTAL COSTS (estimate) 3.26% p.a.

The primary objective of the Shaw Liquid Alternatives Portfolio is to provide regular and sustainable income and capital growth over the medium term (3–5 years) whilst minimising risk to capital. It achieves this by investing in a diversified  portfolio of asset classes and strategies that have low correlation with traditional equity and debt asset classes. This portfolio is designed to act as a volatility dampener and diversifier to an existing portfolio of liquid assets.

The portfolio is a blend of strategies and investments that can be expected to have a lower correlation to equities, bonds and other traditional beta style investments. The portfolio was designed primarily to lower the downside variance of an income, balanced or growth portfolio that uses a mixture of bonds and equities to derive a given long term return. The strategies and managers chosen for the portfolio have a demonstrable track record of minimising risk to capital during downturns and when blended in the appropriate weights can significantly reduce the downside potential of a bond and equity portfolio. Asset classes and strategies may include Global Macro, Managed Futures (Trends), Long/Short and Market Neutral, Commodities and Dynamic Markets. Only managers/investments that have daily pricing and liquidity can be considered. Continual assessment and research into alternative strategies and return streams is a core component of the model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives in all market conditions. The investment process takes into consideration the risk around asset classes and the underlying securities maintaining their growth characteristics whilst ensuring that the risk of a drawdown is adequately managed. The portfolio managers however manage the capital value of the portfolio to minimise the risk of the portfolio failing to achieve its risk and return objectives.

• Investors seeking sustainable and lower volatility returns (mix of income and capital growth) as the primary objective that will be less impacted by large moves in underlying asset prices in traditional investments such as Equities and Bonds.
• As a standalone investment option, suitable for investors looking for a lower risk/lower return exposure that is not correlated with traditional asset class returns.
• Blended with a traditional income, balanced or growth portfolio to reduce drawdown and smooth returns.
• Investors should have an investment horizon of three years or more, and
• Accept the risk of volatility in their investment return.

Liquid alternative assets 80%–100%
Cash 0%–20%

Investment Fee 0.00% p.a.
Indirect Cost Ratio (approx) 1.64% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.28% p.a.
TOTAL COSTS (estimate) 1.92% p.a.

The portfolio seeks long term growth of capital by investing in an actively managed concentrated portfolio of listed securities considered by the portfolio manager to be of very high quality issued by companies with predictable growth.

The portfolio manager seeks to achieve the investment objective by composing a portfolio of highly liquid, listed securities of quality companies from the MSCI World universe. These companies are chosen for their specific growth and business characteristics, earnings development, financial position and experienced management.

• Are considered longer term investors (5 years +)
• Seek exposure to a concentrated portfolio of high quality global equities with superior return potential with generally low turnover

International Equities 90%–100%
Cash 0%–10%

Investment Fee 0.55% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.12% p.a.
TOTAL COSTS (estimate) 0.67% p.a.

To provide a return exceeding the MSCI US Mid Cap Growth TR index over rolling 10-year periods.

The US Future Leaders Model is a concentrated US stock portfolio, designed to provide direct equity exposure to rapidly growing businesses with significant opportunity to develop into future mid- or large-cap companies, primarily via organic growth. Stocks are selected through a proprietary in-house systematic framework. The team’s objective is to identify the highest quality, fastest growing companies and trade them at the right time by adhering to a structured investment process. By identifying these Future Leaders early, they believe the portfolio will afford investors with the opportunity to earn superior long-term returns. Portfolio construction will be rooted in our fundamentally based investment philosophy and process – with a focus on the four primary growth sectors of the economy (technology, healthcare, consumer discretionary, and financial services).

Investment Strategy and Approach
The US Growth Equity team employs a rigorous, disciplined, and repeatable process that is a combination of both qualitative and quantitative inputs. The basis of the process starts with industry centric research performed by the sector experts on the team.

The investment framework is defined by a disciplined investment process consisting of several checklists. This ensures that the investment process used by the team is consistent and repeatable. The investment process has four key inputs that determine a company’s overall ranking and can be applied across all sectors to facilitate stock selection:

1. Company Quality Grade
2. Stock Technical Timing Grade
3. Short Term Earnings Growth Grade
4. Long Term Earnings Growth Grade

The team’s investment framework is the basis for portfolio construction. This regimented process helps to consistently find and own the best quality companies. Value is added through active management by identifying the best companies in the growth universe, then owning (or adding to) them when they are timely and selling (or trimming) them when they are not.

• Are interested in emerging leader growth stocks;
• Are sophisticated investors with long-term investment horizons (5+ years);
• Have a high tolerance for risk; and
• Seek capital appreciation.

International Equities 85%–99%
Cash 1%–15%

Investment Fee 0.55% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.26% p.a.
TOTAL COSTS (estimate) 0.81% p.a.

To provide a total return after fees and costs that is above the S&P/ASX200 Accumulation Index over rolling five-year periods.

The Portfolio is an actively managed diversified Australian share portfolio with companies selected on the basis of their social, environmental and financial credentials. The portfolio has a focus on large, liquid stocks aiming to deliver returns in excess of the S&P/ASX 200 Accumulation Index.

All investments are centred around the 23 principles of the Australian Ethical Charter which guides the Model Portfolio Manager to invest in ethical and responsible initiatives that have a positive impact on people, the planet and animals and avoid investments in companies that engage in harmful products or practices such as coal, oil, weapons, tobacco, gambling and human rights abuses. As a result, the portfolio is expected to have a substantial underweight to the resources sector.

• an actively managed Australian equities portfolio that seeks to invest in companies that meet ethical investment guidelines, while also delivering market competitive returns; 
• a combination of long-term capital growth and yield from a portfolio of Australian stocks; and
• an Australian equities portfolio constructed using a benchmark unaware approach and have a high tolerance to risk.

International Equities 90%–100%
Cash 0%–10%

Investment Fee 0.60% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.02% p.a.
TOTAL COSTS (estimate) 0.62% p.a.

To provide long-term capital growth and income from a portfolio of highquality Australian securities.

The manager seeks to identify stocks that are likely to deliver above-average earnings growth in the foreseeable future and are also attractively priced relative to the market.

• primarily seek capital growth from a portfolio of Australian stocks\
• seek some income via dividends and franking credits; and
• have a high tolerance to risk.

International Equities 90%–100%
Cash 0%–10%

Investment Fee 0.70% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.03% p.a.
TOTAL COSTS (estimate) 0.73% p.a.

The portfolio seeks long term growth of capital by investing in an actively managed concentrated portfolio of listed securities considered by the portfolio manager to be of very high quality issued by companies with predictable growth.

The portfolio manager seeks to achieve the investment objective by composing a portfolio of highly liquid, listed securities of quality companies from the MSCI World universe. These companies are chosen for their specific growth and business characteristics, earnings development, financial position and experienced management.

• Are considered longer term investors (5 years +)
• Seek exposure to a concentrated portfolio of high quality global equities with superior return potential with generally low turnover

International Equities 90%–100%
Cash 0%–10%

Investment Fee 0.715% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.18% p.a.
TOTAL COSTS (estimate) 0.895% p.a.

The model aims to deliver an above market yield with the potential for long-term sustainable income growth, and some capital appreciation. The investment and risk management processes will aim to provide a total return in excess of the benchmark over rolling 7-year periods whilst providing downside protection with lower overall volatility than the index.

The Global Equity Income Model is a global equity strategy that invests in a concentrated direct portfolio of dividend-paying large-cap global stocks and managed using an income and value style. There is a strong investment focus on selecting companies the model manager believes are inexpensive on a price-to-earnings basis, have above average dividend yields, and strong long-term earnings and dividend growth potential. The model manager will consider assessments of valuation, enduring competitive advantage, earnings catalysts, dividend policy and the macroeconomic and geopolitical factors to guide the investment process. The portfolio is expected to have exposure to emerging market companies.

• Seek dividend income as the primary objective from an actively managed portfolio of direct global equity securities, with capital appreciation as a secondary objective
• Have an investment horizon of seven years or more; and
• Accept the risk of global equity share price volatility and the risk associated with foreign currency exchange rate movements.

International Equities 80%–100%
Cash 0%–20%

Investment Fee 0.55% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.20% p.a.
TOTAL COSTS (estimate) 0.75% p.a.

The portfolio aims to outperform the MSCI World ex-Australia Index (AUD) over rolling three-year periods.

T. Rowe Price applies an active, style agnostic approach to a global opportunity set to create a portfolio of high conviction investments in companies with competitive advantages positioned on the right side of secular change. The manager’s research driven advantage integrates bottom-up fundamental research and absolute and relative risk measures with an aim to provide durable performance over a full market cycle.
The portfolio largely invests in developed market international equities though may include some exposure to emerging market companies. It may be expected to outperform in down markets given the focus on companies that offer durable growth at reasonable valuations and conversely, may be expected to underperform in very strong markets led by a narrow portion of the market driven by high/extreme valuations.

• Are looking for exposure to an actively managed portfolio of direct global equity securities;
• Seek steady growth in principal with active risk control; and
• Can accept the risk of short-term share price and foreign currency fluctuations associated with global equities

International Equities 90%–100%
Cash 0%–10%

Investment Fee 0.462% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.55% p.a.
TOTAL COSTS (estimate) 1.012% p.a.

To outperform the benchmark (MSCI All Countries World Index AUD) over a rolling five-year timeframe.

This model is designed to be a core quality growth allocation for investors who aim to achieve long term capital appreciation through a long only, concentrated, actively managed and globally diversified equity portfolio of 17-23 holdings.

The manager utilises a proprietary scoring system called the Conviction Framework, which allows the investment team to compare companies across all sectors, geographies and business models. Over time, this proprietary framework creates substantial intellectual property within the team, which guides the portfolio towards superior businesses with high long term return potential.

The Conviction Framework consists of three pillars – cash flow, growth and management– rating each company relative to others. The overarching objective is to understand the key risks and opportunities impacting each of the three dimensions for each individual company on a forward-looking basis.

The Conviction Framework provides a road map for identifying, clarifying and quantifying a stock’s investment thesis.

• Seek capital appreciation as the primary objective from an actively managed portfolio for direct global equities;
• Have an investment horizon of five years or more; and
• Accept the risk of global equity price volatility and the risk associated with foreign currency exchange rate movements.

International Equities 85%–99%
Cash 1%–15%

Investment Fee 0.55% p.a.
Indirect Cost Ratio (approx) 0.00% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.25% p.a.
TOTAL COSTS (estimate) 0.80% p.a.

The primary objective of the Shaw Income Goal Portfolio is to provide a regular and sustainable income stream over the medium term (3–5 years) whilst minimising risk to capital. It achieves this by investing in a diversified portfolio of asset classes and strategies. The strategy is designed to have a medium level of risk.

The investment process combines quantitative and qualitative criteria and analysis to identify asset classes, markets, securities and strategies which have a focus toward producing sustainable income as opposed to capital growth. The portfolio construction is based on macro-economic and thematic views of Shaw’s Research in order to best meet the risk and return objectives of the investment strategy. The portfolio is a blend of the Shaw and Partners SMA strategic portfolios based on their suitability to the income objective. Each goals based portfolio has effectively its own asset and risk allocation managed by the Shaw Portfolio Strategies Team. Asset classes and strategies may include cash, Australian debt securities, and Australian equities including property securities, international equities and alternative strategies (ETF and or managed funds).  Continual assessment and risk management of bottom-up and top-down parameters is a core component of the model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives in all market conditions. The investment process takes into consideration the risk around asset classes and the underlying securities, maintaining their income characteristics whilst ensuring that the risk of a drawdown is adequately managed. The Portfolio Managers however manage the capital value of the portfolio to minimise the risk of the portfolio failing to achieve its risk and return objectives.

• Seek income as the primary objective and some capital appreciation from a broad range of Australian and Global asset classes and strategies
• Have an investment horizon of three years or more
• Accept the risk of volatility in their investment return.

Shaw Debt Securities Income 0%–30%
Shaw Hybrid Income 0%–35%
Shaw Australian Equity Income (Large Cap) 0%–60%
Shaw International Equity 0%–40%
Liquid Alternatives 0%–40%
Cash 0%–100%

Investment Fee 0.22% p.a.
Indirect Cost Ratio (approx) 0.28% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.33% p.a.
TOTAL COSTS (estimate) 0.83% p.a.

The primary objective of the Shaw Balanced Portfolio is to provide a regular and sustainable income stream and capital growth over the medium term (4–6 years), together with some capital growth whilst minimising risk to capital. It achieves this by investing in a diversified portfolio of asset classes and strategies. The strategy is designed to have a moderate level of risk.

Investment Strategy and Approach The investment process combines quantitative and qualitative criteria and analysis to identify asset classes, markets, securities and strategies which have a focus toward producing sustainable income and capital growth. The portfolio construction is based on macro-economic and thematic views of Shaw’s Research in order to best meet the risk and return objectives of the investment strategy. The portfolio is a blend of the Shaw and Partners SMA strategic portfolios based on their suitability to the Balanced portfolio objective. Each goals based portfolio has effectively its own asset and risk allocation managed by the Shaw Portfolio Strategies Team. Asset classes and strategies may include cash, Australian debt securities, and Australian equities including property securities, international equities and alternative strategies (accessed via ASX listed ETFs and or managed funds). Continual assessment and risk management of bottom-up and topdown parameters is a core component of the model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives in all market conditions. The investment process takes into consideration the risk around asset classes and the underlying securities maintaining their income and growth characteristics whilst ensuring that the risk of a drawdown is adequately managed. The Portfolio Managers however manage the capital value of the portfolio to minimise the risk of the portfolio failing to achieve its risk and return objectives.

• Seek a balance of income and capital growth as the primary objective from a broad range of Australian and global asset classes and strategies
• Have an investment horizon of four years or more
• Accept a moderate risk of volatility in their investment return.

Shaw Debt Securities Income 0%–50%
Shaw Hybrid Income 0%–50%
Shaw Australian Equity Core (Large Cap) 0%–60%
Shaw Australian Equity Growth (Small and Mid-Cap) 0%–30%
Shaw International Equity 0%–40%
Liquid Alternatives 0%–40%
Cash 0%–100%

Investment Fee 0.22% p.a.
Indirect Cost Ratio (approx) 0.54% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.37% p.a.
TOTAL COSTS (estimate) 1.13% p.a.

The primary objective of the Shaw Growth Goal Portfolio is to provide regular and sustainable capital growth over the longer term (5–7 years). It achieves this by investing in a diversified portfolio of asset classes and strategies. The strategy is designed to have a high level of risk. It achieves this by investing in a diversified portfolio of asset classes and strategies. The strategy is designed to have a high level of risk.

The investment process combines quantitative and qualitative criteria and analysis to identify asset classes, markets, securities and strategies which have a focus toward producing capital growth over and above income. The portfolio construction is based on macro-economic and thematic views of Shaw’s Research in order to best meet the risk and return objectives of the investment strategy. The portfolio is a blend of the Shaw and Partners SMA strategic portfolios based on their suitability to the growth objective. Each goals based portfolio has effectively its own asset and risk allocation managed by the Shaw Portfolio Strategies Team. Asset classes and strategies may include cash, Australian debt securities, and Australian equities including property securities, international equities and alternative strategies (ETF and or managed funds). Continual assessment and risk management of bottom-up and top-down parameters is a core component of the model. Changes to the portfolio will be made as deemed appropriate by the investment team in order for the portfolio to have a high probability of meeting its objectives in all market conditions. The investment process takes into consideration the risk around asset classes and the underlying securities maintaining their growth characteristics whilst ensuring that the risk of a drawdown is adequately managed. The Portfolio Managers however manage the capital value of the portfolio to minimise the risk of the portfolio failing to achieve its risk and return objectives.

• Seek capital growth as the primary objective and some income from a broad range of Australian and global asset classes and strategies
• Have an investment horizon of five years or more
• Accept the risk of volatility in their investment return.

Shaw Australian Equity Growth (Large Cap) 0%–80%
Shaw Australian Equity Growth (Small and Mid-Cap) 0%–40%
Shaw International Equity 0%–40%
Liquid Alternatives 0%–40%
Cash 0%–100%

Investment Fee 0.22% p.a.
Indirect Cost Ratio (approx) 0.77% p.a.
Performance Fee Nil
Transaction Costs (estimate) 0.24% p.a.
TOTAL COSTS (estimate) 1.27% p.a.