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Shares Technology Stocks

Facebook’s Network Effect Moat Source Remains Intact

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along with the valuable data that they generate, makes Facebook attractive to advertisers in the short and long term. The combination of these valuable assets and expected continuing growth in online advertising bodes well for Facebook, as the firm generates strong top-line growth and remains cash flow positive and profitable. Facebook has increased users and user engagement by providing additional features and apps to keep them engaged within the Facebook ecosystem. With more Facebook user interaction among friends and family members, sharing of videos and pictures, and the continuing expansion of the social graph, we believe the firm compiles more data, which Facebook and its advertising clients then use to launch online advertising campaigns targeting specific users. While utilization of the data is under scrutiny in different markets, we think Facebook’s large audience size will still attract the ad dollars. Growth in Facebook’s average ad revenue per user indicates advertisers’ willingness to pay more for Facebook-placed ads, as they expect high return on investment from the targeted ads.

We believe Facebook will continue to benefit from an increased allocation of marketing and advertising dollars toward online advertising, more specifically social network and video ads where Facebook is especially well positioned. The firm’s Facebook app, along with Instagram, Messenger, and WhatsApp, is among the world’s most widely used apps on both Android and iPhone smartphones. Facebook is taking steps to further monetize its various apps, such as providing interactive video ads. It is also applying artificial intelligence and virtual and augmented reality technologies to various products, which may increase Facebook user engagement even further, helping to further generate attractive revenue growth from advertisers in the future.

We assign Facebook a wide moat rating based on network effects around its massive user base and intangible assets consisting of a vast collection of data that users have shared on its various sites and apps. Given its ability to profitably monetize its network via advertising, we think Facebook will more likely than not generate excess returns on capital over the next 20 years.

Financial Strength

 In an industry where continuing investments are required to remain competitive and maintain market leadership, we believe Facebook is well positioned in terms of access to capital. The firm has a very strong balance sheet with $62 billion in cash, cash equivalents, and marketable securities and no debt.The firm generated $39 billion cash from operations in 2020, 7% higher than the prior year. We expect faster growth in cash flow during the next five years owing to operating leverage after 2022. Facebook’s strong operational and financial health is demonstrated by the 28% average free cash flow to equity/revenue during the past three years. We project average annual FCFE/sales to be in the 35%-40% range through 2025, as a result of strong top-line growth and slight operating margin expansion beginning in 2022. We do not expect Facebook to issue a dividend as it remains in a rapid-growth phase. The firm may use some portion of its cash, as it remains active on the merger and acquisition front.

Bull Says

  • With more users and usage time than any other social network, Facebook provides the largest audience and the most valuable data for social network online advertising. 
  • Facebook’s ad revenue per user is growing, demonstrating the value that advertisers see in working with the firm. 
  • The application of AI technology to Facebook’s various offerings, along with the launch of VR products, will increase user engagement, driving further growth in advertising revenue.

Company Profile

Facebook is the world’s largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Facebook refers to this as Facebook Watch. The firm’s ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm’s total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Facebook operates at a 30%-plus margin.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Dividend Stocks

Blackstone Has Built Itself a Solid Reputation as a Go-To Firm in the Alternative Assets Segment

Business Strategy and Outlook

Blackstone has built a solid position in the alternative asset-management industry, utilizing its reputation, broad product portfolio, investment performance track record and cadre of dedicated professionals to not only raise massive amounts of capital but sustain the reputation it has built for itself as a “go-to firm” for institutional and high-net-worth investors looking for exposure to alternative assets. Unlike the more traditional asset managers, who have had to rely on investor inaction (driven by either good fund performance or investor inertia/uncertainty) to keep annual redemption rates low, the products offered by alternative asset managers can have lockup periods attached to them, which prevent investors from redeeming part or all of their investment for a prolonged period of time.

Financial Strength

Blackstone’s business model depends heavily on having fully functioning credit and equity markets that will allow its investment funds to not only arrange financing for leveraged buyouts and/or additional debt issuances for the companies it operates but cash out of them once they’ve run their course. The company entered 2021 with $5.7 billion in longer-term debt (on a principal basis) on its books, with 56% of that total coming due during 2030-50. The company also has a $2.25 billion revolving credit facility (which expires in November 2025) but had no outstanding balances at the end of June 2021.

Blackstone should enter 2022 with a debt/total capital ratio of 44%, debt/EBITDA (by our calculations) at 1.3 times, and interest coverage of more than 25 times. On the distribution front, share repurchases have been rare over the past decade, with the company repurchasing (net of issuances) less than $2 billion of stock (most of which was bought back in the past three calendar years). During the first half of 2021, Blackstone repurchased 3.2 million shares of common stock for $289 million. Dividend payments, meanwhile, exceeded $21 billion during 2011-20 and are expected to account for 85% of distributable earnings annually going forward.

Bulls Say’s

  • Blackstone, with $499 billion in fee-earning AUM at the end of June 2021, is a “go-to firm” for institutional and high-net-worth investors looking for exposure to alternative assets.
  • The company’s ever-increasing scale, diversified product offerings, long track record of investment performance and strong client relationships position the firm to perform well in a variety of market conditions.
  • Customer demand for alternatives has been increasing, with institutional investors in the category limiting the number of providers they use—both positives for Blackstone’s business model.

Company Profile 

Blackstone is one of the world’s largest alternative asset managers with $684 billion in total asset under management, including $499 billion in fee-earning asset under management, at the end of June 2021. The company has four core business segments: private equity (27% of fee-earning AUM, and 31% of base management fees, during 2020); real estate (32% and 39%); credit & insurance (25% and 15%); and hedge fund solutions (16% and 15%). While the firm primarily serves institutional investors (87% of AUM) it does serve clients in the high-net-worth channel (13%). Blackstone operates through 25 offices located in the Americas (8), Europe and the Middle East (9), and the Asia-Pacific region (8).

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

PGF Dividend Uplift Offers Attractive Yield

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Last trade price of PM Capital is A$ 1.49. Their Outstanding shares is 390.11 Million. PGF’s provides Public Float which is 279.25 Million. PM Capital Global Earnings Per Share (EPS) is $0.415 while the Price Earning ratio is 3.59 percent. 

Currently, PM Capital’s Annual Yield is 5.03 percent while their Annual revenue TTM is $218.56 Million.

On 24th September 2021, Net Tangible Asset backing per ordinary share before tax accruals is $1.63 while NTA after tax is $1.47. Gross Dividend yield per annum is 9.6 percent.  

The Company also announced that due to its strong profits reserve position, it intends to maintain a minimum dividend of 5.0cps for both the interim and final dividend for FY22, representing a full year FY22 dividend of at least 10cps. As at 30 June 2021, the Company has 5 years dividend coverage at 10cps.

On 12 August 2021, PM Capital Global Opportunities Fund ((PGF)) announced a final dividend for FY21 of 5.0cps, fully franked, a 100% increase on the FY20 final dividend.

The increased dividend announcement represents a significant uplift in yield. Based on the share price at the close of 19 August 2021, the full year dividend declared for FY21 represented a dividend yield of 4.8%. The forecast FY22 dividend would represent a yield of 6.4%, fully franked, which is strong for a global equity focused LIC.

Company Profile 

PM Capital Global Opportunities Fund Ltd. engages in investing in a portfolio of listed securities across global securities markets. Its investment objective is to increase the value of its portfolio by providing long term capital growth. The company was founded on October 1, 2013 and is headquartered in Sydney, Australia.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Shares Small Cap

Baby Bunting FY21 results show group revenue surged by 15.6%

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Investment Thesis

  • Mandatory product safety standards for baby goods in Australia limit supply sources and provide barriers to entry to international competitors.
  • BBN has the largest presence in Australia amongst specialty baby goods retailers.
  • Low risk that online sales threaten high service business model of brick-and- mortar stores to showcase goods and in-store advice.
  • Solid growth story via new store openings (targeting 100+ stores network).
  • Strong market shares (currently sits at 30% in a highly fragmented market).

Key Risks

  • Retail environment and general economic conditions in addressable markets may deteriorate.
  • Competition may intensify especially from online retailers such as Amazon, specialty retailers, department stores, and discounted department stores.
  • Customer buying habits/trends may change. Rapid changes in customer buying habits and preferences may make it difficult for the Company to keep up with and respond to customer demands.
  • Higher operating and occupancy costs. Any increase in operating costs especially labour costs will affect the Company’s profitability.
  • Poor inventory control and product sourcing may be disrupted.
  • Management performance risks such as poor execution of store rollout especially into ex-metro areas.

FY21 Results Highlights 

  • Sales of $468.4m were up +15.6%, with same-store comparable sales up +11.3%. Online sales grew by +54.2% and now make up 19.4% of total sales (vs 14.5% in pcp).
  • Gross profit of $173.7m was up +18.3% on pcp, with GP margin up +83bps to 37.1%. Cost of doing business (CODB) as a percentage of sales improved 14bps to 27.8%, aided by store expense leverage and warehouse volume leverage (cost fractionalization).
  • Operating earnings (EBITDA) were up +29.2% to $43.5m (with EBITDA margin up +100bps to 9.3%) and NPAT was up +34.8% to $26.0m.
  • Operating cash flow was weaker versus previous corresponding period (pcp), driven by higher working capital – driven by an increase in inventories and also cycling particularly low levels in the pcp.
  • The Company declared a final dividend of 8.3cps, taking the full year dividend to 14.1cps (up +34.1% on pcp). The Board continues to target a payout ratio in the range of 70-100% pro forma NPAT.
  • Private label sales were up +31.1% vs pcp and now make up 41.4% of group sales (vs 36.5% in FY20). The Company remains on target to achieve 50% of sales from private sales.

Company Profile 

Baby Bunting Group Limited (BBN) is Australia’s largest nursery retailer and one-stop-baby shop with 42 stores across Australia. The company is aspecialist retailer catering to parents with children from newborn to 3 years of age. Products include Prams, Car Seats, Carriers, Furniture, Nursery, Safety, Babywear, Manchester, Changing, Toys, Feedingand others.

(Source: Banyantree)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Shares Technology Stocks

Netflix faces increase in competition in the U.S and around the world

Netflix has morphed into a pioneer in subscription video on demand and the largest online video provider in the U.S. and likely the world. Our economic moat rating of narrow is based on intangibles resulting from the use of Big Data stemming from the firm’s massive worldwide subscriber base. Already the largest provider in the U.S., Netflix expanded rapidly into markets abroad as the service now has more subscribers outside of the U.S. than inside. 

The firm has used its scale to construct a massive data set that tracks every customer interaction. It then leverages this customer data to better purchase content as well as finance and produce original material such as “Stranger Things.” Media firms will continue to reap the benefits of both an additional window for existing content and another platform for new content. Larger firms like Disney+ and WarnerMedia have launched their own SVOD platforms to compete against Netflix. 

Financial Strength 

Netflix’s financial health is poor due to its weak free cash flow generation, large number of content investments that require outside funding (primarily debt), and content obligations. Debt has been taken on to fund additional content investments and international expansion. The net cash burn was over $2 billion in 2017, over $3 billion in 2018, and $3.5 billion in 2019. As of June 2021, Netflix has $14.9 billion in senior unsecured notes that do not have borrowing restrictions, but a relatively small amount due in the near term ($500 million due 2021, $700 million due 2022, $400 million due 2024, and $800 million due 2025), as the firm generally issues debt with a 10-year maturity. Netflix also has a material quantity of noncurrent content liabilities ($2.7 billion recognized on the balance sheet and over $15 billion not yet reflected on the balance sheet).

Bulls Say’s 

  • Netflix’s internal recommendation software and large subscriber base give the company an edge when deciding which content to acquire in future years.
  • Netflix has built a substantial content library that will benefit the firm over the long term.
  • International expansion offers attractive markets for adding subscribers.

Company Profile 

Netflix’s primary business is a streaming video on demand service now available in almost every country worldwide except China. Netflix delivers original and third-party digital video content to PCs, Internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Fixed Income Fixed Income

Fidelity Government Income Fund: An appealing Government-focused offering

A blended benchmark of the Bloomberg U.S Government Bond Index (75% weighting) and the Bloomberg U.S Mortgage Backed Securities Index (25%), sticks primarily to government-backed fare (Outside of an occasional in the student loan-backed debt that carries a federal guarantee for atleast 97% of principal and interest) and doesn’t make big interest-rate bets. It plays to its strength in the mortgage portion of the portfolio, which typically accounts for 40% to 60% of assets, drawing on significant investments in proprietary analytics to identify mortgages with more attractive cash flow projections than their prices suggest. As of June 2021, the strategy’s market exposure stood roughly 107% of net assets.

Portfolio

The high-quality, government-focused portfolio tends to hold an overweighting in mortgages relative to its blended benchmark (75% Bloomberg U.S Government Bond Index and 25% Bloomberg U.S Mortgage backed Securities Index), with the team actively adjusting this mix based on valuations. Meanwhile, its allocation to U.S Treasuries accounted for 67% of assets in June 2021, up from 50% at the beginning of 2020. Here, the team favors 30-year fixed rate mortgage with repayment-resistant characteristics. The team has found agency collateralized mortgage obligations to be less attractive recently, trimming its stake to 9% of assets as of June 2021 from 14% at the start of 2020. These securities can be volatile and suffer from bouts of illiquidity, although they typically account for 3% or less of the portfolio and stood at less than 1% as of June 2021.

People

This strategy benefits from experienced leadership and a well-resourced securitized team, supporting a people pillar rating of above average. Sean Corcoran was named as a comanger when lrving left the team. Corcoran, a 19 – year fidelity veteran, previously analyzed commercial MBS and other non-agency fare as an analyst. Corcoran and castagliuolo draw on considerable resources, including eight dedicated structured-products analysts and five macro analysts. Five traders across agency, non-agency and rates markets support the team. In mid-2020, the team hired John Torregrossa, an experienced agency MBS trader with over 15 years experience, to replace veteran trader Steve Langan, who retired in late 2020.

Performance 

Well time adjustments have aided recent performance. In 2019, an increase in its Treasuries allocation helped it to a 6.5% return which bested 75% of category peers. In 2020, the team increased its exposure to mortgages amid the first quarter sell-off, helping the strategy to a 6.9% return, which bested over two thirds of peers.

FGOVX Performance.png

About the Fund

Fidelity Government Income Benefits from a well-resourced team and risk-conscious approach backed by the firms’s deep mortgage analytics. Fidelity’s significant investment in analytics, including a proprietary mortgage model that allows the team to quickly model changes in assumptions regarding borrower repayment behavior to identify mispricings in the mortgage market. 

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Global stocks Shares

Incitec Pivot’s Fiscal Second Half Enjoys Surge in Fertiliser Price AUD 3.00 FVE Unchanged

Business Strategy and Outlook

Incitec Pivot aims to expand its business around its strong global market share in explosives. This provides an increasingly stable earnings stream relative to volatile earnings from its fertiliser business. Competitive advantages include a duopoly Australian explosives business and global explosives operations. Incitec Pivot is also a dominant player in the Australian domestic fertilizer market and enjoys a degree of domestic fertiliser pricing power from its dominant market share in eastern states, but it is too small to influence global prices.

Explosives earnings are leveraged to mining volumes as much as price and should benefit from long-term global growth in demand for minerals and metals. Additionally, mining strip ratios are expected to increase over time, with more explosives required to mine the same amount of ore. Incitec Pivot is consequently focused on ensuring all new projects meet strict financial criteria. There will likely be an oversupply of ammonium nitrate in Western Australia to 2020 and in Eastern Australia to 2021. 

Financial Strength

IncitecPivot raised AUD 645 million in new equity at AUD 2.00 per share in the second half of fiscal 2020. In conjunction with positive free cash flows, net debt fell to AUD 1.3 billion at end September, down 45% from AUD 1.9 billion at end March 2020. As at end March 2021, net debt worsened slightly to AUD 1.48 billion, for comparatively modest leverage ND/(ND+E) of 22%, but somewhat elevated net debt/EBITDA just over 2.0. It is pleasing therefore that management has expressed an investment bias to capital-light and faster cash returning projects aligned to the strategy.The equity capital raised in fiscal 2020 increased the company’s liquidity and supports a continued investment-grade credit rating.

Our fiscal 2021 EPS forecast is little changed at AUD 0.10 with full-year results to be released on Nov. 15. The global explosives provider deliberately brought down its Waggaman ammonia plant in late August 2021 in anticipation of Hurricane Ida, with an NPAT impact of USD 21 million. Post-hurricane inspections did not identify any material damage to the Waggaman plant. Incitec Pivot ended March 2021 with net debt of AUD 1.48 billion, for comparatively modest leverage ND/(ND+E) of 22%, but somewhat elevated net debt/EBITDA just over 2.0.

Bulls Say’s

  • Investors enjoy bumper dividends at peak cycle times.
  • Continued growth of the explosives business will reduce earnings volatility.
  • Over the longer term, explosives earnings are favourably leveraged to mining volumes rather than prices, and mine strip ratios are expected to increase over time.

Company Profile 

Incitec Pivot is a leading global explosives company with operations in Australia, Asia, and the Americas. We estimate its share of the global commercial explosives market at about 15%. Explosives contributes 80% of EBIT. Incitec Pivot is also a major Australian fertiliser producer and distributor and is the only Australian manufacturer of ammonium phosphates and urea. Ammonium phosphates are sold in the domestic market and exported.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

Metrics Income Seeks to Raise up to $152m through Institutional Placement and Unit Purchase Plan

Currently, their Annual Yield is 6.98 percent and their dividend amount is 0.009. Metrics Income’s P/E Ratio is 13.8 percent. 

Metrics Income Opportunities Trust’s Revenue is 30.70 million till June 2021. Their last traded price is $2.05. The trust targets a cash yield of 7 percent p.a. which is intended to be paid monthly with a total target return of 8 percent p.a to 10 percent p.a in each case net of fees and expenses.

Their Net Asset Value is $407,156,629. Metrics Income Opportunities Trust ((MOT)) announced on August 26, 2021, that they intend to raise $52.86 million by issuing 26.04 million new fully paid ordinary MOT units to wholesale investors at a price of $2.03 per unit. 

Furthermore, the Trust announced a Unit Purchase Plan (UPP) for existing eligible unit holders to purchase up to $30,000 in new units at a price of $2.03. The Trust hopes to raise up to $100 million through the UPP. Excessive applications may be scaled back on a pro rata basis. The UPP is set to open on September 6, 2021, and close on September 30, 2021.

The offer price of $2.03 corresponds to the NAV at the time of the announcement, with the UPP allowing unit holders to acquire units at a 1.9 percent discount to the unit price at the close of the trading day preceding the announcement (25 August 2021).

The proceeds from the institutional placement and the UPP will be invested in accordance with MOT’s investment mandate and target return.

Company Profile 

Metrics Income Opportunities Trust seeks to provide investors exposure to a portfolio of private credit investments. The Investment Objective of the Trust is to provide monthly cash income, preserve investor capital and manage investment risks, while seeking to provide potential for upside gains through investments in private credit and other assets such as Warrants, Options, Preference Shares and Equity.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
ETFs ETFs

Vanguard Diversified Growth Index ETF: A Diversified fund at low cost

Investment Objective

Vanguard Diversified Growth Index ETF seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax.

Process

The Vanguard Diversified Index ETF series follows the investment process of the unlisted funds, but with some additional trade-offs of the listed structure, including brokerage costs and variable bid-ask spreads. The methodology starts by defining reasonable investment horizons for each portfolio and allocates to broad asset-class exposures such as equities and fixed interest based on the defensive/growth split. Then, sub asset allocation within classes follows a market-cap weighting approach, while allowing for behavioural biases and regulatory factors specific to each local market. The SAA determination is aided by the Vanguard Capital Markets Model, which forecasts asset-class returns through scenario analysis. An annual review may identify major structural shifts that can lead to a revised SAA.Underlying sector exposures are realised through in-house index-tracking funds. 

Portfolio

Vanguard’s straightforward approach applies a strategic asset allocation that is updated periodically and broadly mirrors its equivalent unlisted fund range. Dynamic and tactical asset allocation are not used. Vanguard sticks to the traditional asset classes of equities, fixed interest, and cash, while avoiding alternatives and unlisted assets. The four diversified options are designed to suit different investor objectives and risk profiles. Vanguard Conservative has a defensive/growth split of 70/30, Balanced is 50/50, Growth is 30/70, and High Growth is 10/90. 

Performance

 In comparison to unlisted peers, all ETFs sit in the top quartile over a trailing three-year time period as at June 2021.

Performance return (%)

Source: Fact Sheet

Asset Allocation(%)

Source: Fact sheet

About the fund

The ETF gives investors low-cost access to a variety of sector funds, allowing them to diversify across several asset classes. The Growth ETF is a growth-oriented exchange-traded fund (ETF) created for investors seeking long-term capital growth. A 30% allocation to income asset classes and a 70% allocation to growth asset classes are the goals of the ETF and suitable to buy and hold investors seeking long term capital growth, but requiring some diversification benefits of fixed income to reduce volatility.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Funds Funds

Pendal Sustainable Conservative Fund: An effective asset allocated fund with ESG overlay

It is noted that the investors would be comfortable as the ESG considerations mirror with those of the Manager’s approach- the strategy does not invest in tobacco or weapons manufacturing as well as the Fund has negative screens (alcohol, gaming, pornography) with activities materiality caveat. The fund utilises internal as well as external fund managers in order to make effective decisions while allocating its assets. The fund size is $345m.            

Downside Risks:

  • ESG breaches by investments in the portfolio.
  • Underlying managers fail to deliver performance or breach mandates.  
  • Personnel change – turnover in the team or portfolio managers. 
  • Broader market risk.

Fund Performance & Current Positioning:

(%)FundBenchmarkOut-performance
1-month 1.07%0.74%+0.33%
3-months 3.62%3.09%+0.53%
6-months8.17%5.89%+2.28%
1-year 9.46%7.40%+2.06%
3-year (p.a.)4.82%5.28%-0.46%
5-year (p.a.)4.10%4.76%-0.66%
Since Inception (p.a.)+7.15%+3.86%+3.29%

(Source: Pendal; Past performance is not an indicator of future performance)

Fund Positioning:

 % of Portfolio
Australian shares9.0%
International shares13.0%
Australian fixed interest17.2%
International fixed interest16.2%
Australian property securities3.4%
International property securities 3.1%
Alternative investments15.9%

(Source: Pendal)

Key Highlights:

  • Investment Team:

The Pendal Multi-Asset team is headed by the very experienced Michael Blayney. The team is made up of 4 members- 3 Portfolio Managers and 1 Analyst. The team is also supported by Edwina Matthews who is Pendal’s Head of Responsible Investments.

  • Investment Philosophy and Process:

The Fund’s core belief is that markets are inefficient, and that active management can improve risk and return. The process basically consists of three approaches namely; Strategic Asset Allocation Approach (SAA), Environmental, Social and Governance (ESG) integration and construction of benchmark using neutral’s asset allocation position and index returns.

About the Fund:

The Fund is an actively managed multi-asset portfolio across a range of asset classes and incorporates a range of sustainable, ethical and financial considerations. The strategy aims to provide real return over inflation over the medium term. The strategy’s neutral target asset allocation is 75% defensive assets and 25% growth assets, which is suitable for ESG focused conservative investors.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.