SMA MLC Premium Balanced 70
Features
Information
Investment minimums
Pricing
Investment objective
To deliver CPI +3% over 5+ years, net of investment manager fees
Investment strategy
Our investment experts invest each portfolio in a combination of asset classes including shares, fixed income, alternatives and cash that they believe will be best placed to achieve the investment objective of each portfolio for investors. We carefully select specialist investment managers to build investments in each asset class. Investments are mainly actively managed through a combination of direct shares in companies and managed funds.
In an unpredictable and constantly changing world, we use our unique Investment Futures Framework to continually identify the very wide range of potential investment market conditions that could occur, and their effect on asset class returns. The insights from this analysis are used to work out the combination of asset classes that our investment experts believe will best achieve each portfolio’s objective.
Investor profile
The portfolio is designed for investors who seek income returns with potential for capital growth by investing in a diversified mix of growth and defensive assets. They should be prepared to accept a high level of risk of capital loss to achieve the investment objective.
Meet the manager(s)
Our impressive investment capabilities are driven by our investment team and structure. Our unified team has had a long association with creating and managing multi-manager portfolios for investors and draws on the very best of our individual corporate heritages, honed over multiple investment cycles. We have created an investment capability of significant depth and breadth in the industry – leveraging a powerful common engine room working for the benefit of our clients. Using our market-leading investment approach, we structure our portfolios to deliver more reliable returns across many potential market environments.
This website contains general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the relevant Product Disclosure Statement (PDS) or offer document available from us or your financial adviser, before you acquire a financial product. Disclaimers - MLC
Important information:
Other fees and costs may apply to this fund. To obtain this information please refer to the latest Product Disclosure Statement (PDS) for the fund available at mlc.com.au/findafund, speak to your Financial Adviser or call MLC on 132 652 between 8am and 6pm (AEST/AEDT), Monday to Friday.
Cumulative performance
| 3 months | 6 months | Year to date | 1 year | 3 years pa | 5 years pa | ||
|---|---|---|---|---|---|---|---|
| Fund | 4.13% | 3.69% | 9.35% | 15.59% | 5.15% | - | |
| Benchmark | 4.75% | 4.10% | 10.31% | 16.46% | 4.95% | - |
Calendar Performance
| 31/12/2023 | 31/12/2022 | 31/12/2021 | 31/12/2020 | 31/12/2019 | ||
|---|---|---|---|---|---|---|
| Fund | 11.70% | -7.43% | 15.17% | - | - | |
| Benchmark | 10.86% | -7.79% | 14.13% | - | - |
This website contains general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the relevant Product Disclosure Statement (PDS) or offer document available from us or your financial adviser, before you acquire a financial product. Disclaimers - MLC
The performance and holdings are for the Model Portfolio and are not a guarantee or an indication of the actual performance or holdings of a client's portfolio due to differences in the timing and transaction prices for portfolio changes, client investments and withdrawals during the period, timing of receipt of dividends and income distributions, platform administration fees, transactional costs associated with the client's portfolio, and any portfolio exclusions required by the client.
Past performance is not a reliable indicator or guarantee of any future performance.
The value of an investment may rise or fall with the changes in the market. Inflation is measured by the Consumer Price Index (CPI). We use the most recent CPI as an estimate until the actual CPI is available from the Australian Bureau of Statistics.
The performance data has been sourced by FE fundinfo.
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Asset allocation as at 30/9/2024
| Australian shares | 24.44% | |
| Property | 4.13% | |
| Infrastructure | 3.07% | |
| Australian fixed interest | 12.93% | |
| Global fixed interest | 13.17% | |
| Cash and short-term securities | 4.33% | |
| Alternative - growth | 7.11% | |
| Alternative - defensive | 3.05% | |
| Global shares (unhedged) | 14.13% | |
| Global shares (hedged) | 13.64% |
Asset allocation range
| Asset class | Asset range |
|---|---|
| Cash | 2-15% |
| Fixed Interest | 5-40% |
| Alternatives | 0-20% |
| Australian Shares | 20-50% |
| Global Shares | 10-50% |
| Property | 0-15% |
This website contains general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the relevant Product Disclosure Statement (PDS) or offer document available from us or your financial adviser, before you acquire a financial product. Disclaimers - MLC
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Direct equities holdings - as at 30/9/2024
This website contains general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the relevant Product Disclosure Statement (PDS) or offer document available from us or your financial adviser, before you acquire a financial product. Disclaimers - MLC
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Portfolio highlights
The Portfolio generated a strong positive return for the September quarter. Global shares achieved solid gains over the quarter despite concerns over the conflicts in the Middle East and Ukraine. Optimism on ‘Artificial Intelligence’ (AI) prospects, milder inflation outcomes, and both the American and European central banks cutting interest rates were the key drivers for higher global share prices.
The best performing fund in absolute terms over the quarter was the Resolution Capital Global Listed Infrastructure Fund (13.2%), outperforming its benchmark by 1.6%. Brambles and JB Hi-Fi were the biggest contributors for the Direct Australian shares portfolio for the quarter with both releasing a better-than-expected FY24 results and JB HI-Fi also announcing a special dividend.
Wall Street’s benchmark S&P 500 Index made historic highs and delivered a very strong 5.8% quarterly return in local currency terms with the exuberant optimism on AI and technology shares. European shares delivered a solid return. Investors gained solace in milder inflation and the European Central Bank (ECB) cutting interest rates. Chinese shares made an extraordinary recovery in September which allowed China’s MSCI index to deliver an astonishing 22.2% quarterly return in local currency terms. Chinese central banks responded to slow economic activity and weak property markets by assertively cutting interest rates as part of broader co-ordinated stimulus measures. Japanese share markets delivered a -6% quarterly return in local currency terms given concerns over higher interest rate settings by the Japanese central bank.
Australian shares delivered a strong quarterly return of 7.8%. The Information Technology sector made a very strong quarterly return of 15.3%. Real Estate Investment Trusts (REITS) were next best with a 14.5% quarterly return given raised hopes for eventual interest rate cuts in Australia. Financial sector shares also made a very strong 8.3% quarterly gain on lower interest rate hopes. Resource sector shares were boosted by China’s stimulus announcements in September which generated a 7.1% gain. However, there were some disappointments with the Energy sector delivering returns of -6.4% given falling global oil prices. Australia’s economy continued to display subdued economic activity with sluggish consumer spending and weak housing construction. Lower inflation results for August has generated optimism that the Reserve Bank of Australia will become more open to lowering interest rates in early 2025.
Australia’s company reporting season proved fairly resilient in the context of a slowing economic environment, concluding with 33% upgrades and 27% misses. Resource names had the biggest downgrades, driven by weaker commodity prices. The main themes were ongoing weak business demand and increasingly challenged consumer demand. This was offset by better margins as many companies still have sufficient pricing power, and companies are no longer suffering from labour shortages.
Global bonds (hedged) posted a strong 4% quarterly return. Bond investors were comforted by lower inflation readings in the United States and in Europe. Australian bonds posted a solid 3% return for the quarter largely on the back of lower global inflation as well as subdued Australian economic activity results.
This website contains general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the relevant Product Disclosure Statement (PDS) or offer document available from us or your financial adviser, before you acquire a financial product. Disclaimers - MLC
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