| Consumer’s investment objective |
| Capital growth |
Seeks to invest in a Fund designed or expected to generate capital return over the
investment timeframe. Prefers exposure to growth assets (such as shares or property) or
otherwise seeks an investment return above the current inflation rate. |
| Capital preservation |
Seeks to invest in a Fund designed or expected to have low volatility and minimise
capital loss. Prefers exposure to defensive assets that are generally lower in risk and
less volatile than growth investments (this may include cash or fixed income
securities). |
| Income distribution |
Seeks to invest in a Fund designed or expected to distribute regular and/or
tax-effective income. Prefers exposure to income-generating assets (this may include
high dividend-yielding equities, fixed income securities and money market instruments).
|
Consumer’s intended Fund use
(as percentage of assets available for investment excluding family home) |
Solution/Standalone
(Up to 100%) |
May hold the investment as up to 100% of total investable assets.
Likely to seek a Fund with at least ‘Very high’ portfolio diversification. This is
described as a Fund that provides exposure to a large number of holdings across a broad
range of asset classes, sectors and geographic markets with limited correlation to each
other.
|
Major allocation
(Up to 75%) |
May hold the investment as up to 75% of total investable assets.
Likely to seek a Fund with at least ‘High’ portfolio diversification. This is described
as a Fund that provides exposure to a large number of holdings (for example, over 50
securities) in multiple broad asset classes, sectors or geographic markets (for example,
global equities).
|
Core component
(Up to 50%) |
May hold the investment as up to 50% of total investable assets.
Likely to seek a Fund with at least ‘Medium’ portfolio diversification. This is
described as a Fund that provides exposure to a moderate number of holdings (for
example, up to 50 securities) in at least one broad asset class, sector or geographic
market (for example, Australian fixed income securities or global natural resources).
|
Minor allocation
(Up to 25%) |
May hold the investment as up to 25% of total investable assets.
Likely to seek a Fund with at least ‘Low’ portfolio diversification. This is described
as a Fund that provides exposure to a small number of holdings (for example, fewer than
25 securities) or a narrow asset class, sector or geographic market (for example, a
single major commodity (such as gold) or equities from a single emerging market
economy).
|
Satellite allocation
(Up to 10%) |
May hold the investment as a smaller part up to 10% of total investable assets.
May seek a Fund with ‘Very low’ portfolio diversification. This is described as a Fund
that provides exposure to a single asset class (for example, a commercial property) or a
niche asset class (for example, minor commodities, crypto-assets or collectibles).
|
| Consumer’s investment timeframe |
|
The minimum suggested timeframe for holding the Fund. Typically, this is the rolling
period over which the investment objective is likely to be achieved.
|
Consumer’s risk (ability to bear loss) and return profile
The Fund’s risk profile is assessed by taking into consideration the Standard Risk
Measure (SRM) for the Fund, as disclosed in Section 5 of the Fund’s
product disclosure statement, and other indicators of risk which consider the
potential frequency and size of negative returns.
Please refer to Section 4 of each Fund’s product disclosure statement for more
information on the risks of an investment in the Fund.
|
| Low |
For the relevant part of the consumer’s portfolio, the consumer has a conservative or
low risk appetite, seeks to minimise volatility and potential losses, and is comfortable
with a low target return profile.
Typically prefers stable, defensive assets (such as cash).
|
| Medium |
For the relevant part of the consumer’s portfolio, the consumer has a moderate or medium
risk appetite, seeks low volatility and potential losses and is comfortable with a
moderate target return profile.
Typically prefers defensive assets (for example, fixed income).
|
| High |
For the relevant part of the consumer’s portfolio, the consumer has a high risk
appetite, can accept high volatility and potential losses and seeks high returns
(typically over a medium or long timeframe).
Typically prefers growth assets (for example, shares and property).
|
| Very high |
For the relevant part of the consumer’s portfolio, the consumer has a very high risk
appetite, can accept very high volatility and potential losses and seeks to maximise
returns (typically over a medium or long timeframe).
Typically prefers high growth assets (such as high conviction portfolios, hedge funds
and alternative investments).
|
| Consumer’s need to access capital |
| Within one week of request/ Within one month of request / Within three months or
more of request/ At issuer’s discretion |
Addresses the likely period of time between the making of a request for
redemption/withdrawal (or access to investment proceeds more generally) and the receipt
of proceeds from this request under ordinary circumstances.
|