MODEL PORTFOLIO BUSINESS



COUNTERPOINT MODERATE MODEL PORTFOLIO
RISK PROFILE
Moderate with a tolerance for periods of downside risk

OBJECTIVE
The CounterPoint Moderate Balanced Model aims to provide moderate growth, while preserving capital in real terms and generating a low level of income. It is constructed to target moderate volatility with balanced exposure to risky/growth asset classes and less volatile classes. The model will invest in well rated local and offshore collective investment schemes in order to achieve the investment objectives. The selection of funds within the model is focused on building a high quality, defensive portfolio which adapts relative to the market cycle. The model will actively manage risk through the various funds and asset allocation views taken. An allocation is made to offshore funds to provide both asset and currency diversification. In order to achieve capital growth there will be exposure to growth asset classes such as listed equities and listed property - the expected average equity allocation is between 40% and 60% across local and offshore holdings. The model targets Inflation plus 4% on a rolling 5 year basis after fees. It is intended for the longer term cautious client with a moderate risk appetite but seeking some capital growth. The model is compliant with Regulation 28.

INVESTMENT OBJECTIVES
  1. Provide real capital growth of CPI+4% p.a after fees, on a rolling 5 year basis
  2. A defensively managed portfolio which aims to protect capital
  3. Moderate exposure to growth/risky asset classes
  4. Limited income generation
INVESTMENT GUIDELINES
  1. Compliant with Regulation 28
  2. Maximum Offshore exposure of 25%
BENCHMARK
42.5% FTSE/JSE All Share; 3.75% FTSE/JSE Listed property; 14.5% BEASSA All Bond Index; 19.25% SteFi; 9.75% MSCI World; 2.5% MSCI World Real Estate; 5.25% Barclays Global Bond; 2.5% 3 month USD Libor


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