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Portfolio diversification

Portfolio diversification

changes

changes

 

Diversification is a key principle when it comes to investing. Having a portfolio that’s diversified across asset classes may help protect against investment risks including market volatility.

 

As part of our role as superannuation trustee, we provide diversification guidelines to help you decide how to invest your account balance. The guidelines are for general information only and may be particularly useful if you don’t have a financial adviser. This could be because you and/or your adviser decided this was the right allocation for you. It could also form part of your overall strategy.

 

They’re available for the following super and pension products:

  • FirstChoice Personal Super
  • FirstChoice Pension
  • FirstChoice Wholesale Personal Super
  • FirstChoice Wholesale Pension
  • FirstChoice Employer Super
  • Rollover & Superannuation Fund
  • Personal Pension Plan

 

Our diversification guidelines don’t apply to our non-super products: FirstChoice Investments, FirstChoice Wholesale Investments or Managed Investment Funds.

A regular review and notice

We will monitor your portfolio at 31 December each year and let you know via your statement if your portfolio has a holding above one of the suggested diversification guidelines, as outlined in the table below.

 

Asset Class       Investment Category            Trustee diversification guideline          
Cash
Cash and deposits
No suggested limit
Fixed interest and yield    Australian fixed interest No suggested limit
  Diversified fixed interest No suggested limit
  Short duration fixed interest No suggested limit
  Alternative income No suggested limit
Property and infrastructure Australian property and infrastructure 50%
  Global property and infrastructure 50%
Equities Australian share No suggested limit
  Australian share – small companies 50%
  Global share No suggested limit
  Global share – emerging markets 50%
  Specialist share 30%
  Lower volatility share No suggested limit
  Geared funds 30%
Diversified / Multi-sector Defensive No suggested limit
  Conservative No suggested limit
  Moderate No suggested limit
  Growth No suggested limit
  High growth No suggested limit
  Diversified real return 70%
Alternatives Alternatives 20%

 

No suggested limit

No suggested limit
No suggested limit
No suggested limit
No suggested limit
No suggested limit
No suggested limit
What happens next?

If you received a message in your June statement, you should read the relevant product disclosure statement carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The PDS is available at colonialfirststate.com.au or by calling us on 13 13 36. This information is general advice and does not take into account your individual objectives, financial situation or needs before taking action.



Disclaimer

This information has been produced by Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL). AIL is the trustee of the Avanteos Superannuation Trust ABN 38 876 896 681 which includes FirstWrap Plus Super and Pension and is the operator of the Avanteos Wrap Account Service ABN 47 953 207 793 which includes FirstWrap Plus Investments. The investment performance and the repayment of capital of AIL products is not guaranteed.

This information has been prepared by AIL and provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. The Target Market Determinations (TMD) for our financial products can be found at www.cfs.com.au/tmd and include a description of who a financial product is appropriate for. A product disclosure statement (PDS) and investor directed portfolio service (IDPS) Guide is available for the products in FirstWrap Plus and can be obtained from your financial adviser. You should obtain and consider the most up-to-date PDS or IDPS Guide before deciding whether to invest or continue to invest through FirstWrap Plus Super and Pension or FirstWrap Plus Investments.

The Accelerator Cash Account (‘ACA’) is issued by CBA and administered by Commonwealth Securities Limited (CommSec) ABN 60 067 254 399 AFSL 238814, under the brand CommSec Adviser Services. CommSec is a wholly owned but non-guaranteed subsidiary of CBA. For ACAs accessible via the FirstWrap platform, AIL will provide platform administration services only and whilst it may be arranging for the issue of the ACA by facilitating the process, it is not issuing, selling, guaranteeing, underwriting, or providing custody services in relation to ACAs. Clients should read the relevant ACA disclosure documents and IDPS disclosure documents available from firstwrap.com.au before making an investment decision and talk to their financial adviser.

Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. AIL is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

The insurance provider is AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIA Australia). AIA Australia is part of the AIA Group and is not part of the Commonwealth Bank of Australia (CBA) Group of companies. CBA and its subsidiaries and AIL do not guarantee the obligations or performance of AIA Australia or the products it offers.

© Avanteos Investments Limited 2021.

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