Oc Funds Management

Ralton High Yield Australian Shares Model Portfolio

Fund Description To invest in quality ASX listed companies that are assessed as likely to provide investors with attractive long-term returns (capital growth plus above average yield and franking), and at the time of purchase are either included in the S&P/ASX 300 Index or are one of Australiaís largest 300 companies based on market capitalisation.
Objective To provide investors with a consistent, tax-efficient and growing cash dividend yield, and long-term capital growth. The Portfolio aims to deliver a return superior to that of the market over periods of five years or longer and an above market yield.
Investment Strategy To invest in a selection of stocks within its investment universe which offer attractive value relative to the market. By doing this we can maximise the opportunity over time to deliver the return target for the portfolio. In constructing the portfolio we take account of our views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating environment for our companies adds an additional risk overlay. In doing all of this we focus on companies with quality business models as we believe these are best positioned to preserve capital through the cycle.
Investment Universe Companies in the S&P/ASX 300, or those among the largest 300 by market capitalisation
Model Inception Date 1-Feb-08
Benchmark Index S&P/ASX 300 Accumulation Index
Target Outperformance 3% p.a. (gross of fees)
Number of Shares 20 ñ 35
Australian Equities 90%-98%
Cash 2%-10%
Sector Limits Aggregate Index weight of sector +/- 6.0%
Single Stock Limits
Index weight < 0.5% 1.0% to 4%
Index weight = 0.5% to 2% 1.0% to Index + 5%
Index weight = 2% to 6% 1.0% to the greater of 3x Index or†10%
Index weight > 6% Active positions taken when certainty is high.
1.0% to the greater of 10% or index + 3%
Investment Time Horizon At least 5 years
Tracking Error Guidelines 2% - 5% p.a.
Other restrictions Individual security holdings are also limited to 10% of a companyís issued capital
Authorised Benchmark companies, convertible securities, hybrid debt,†and other ASX securities issued by qualifying companies
Excluded Derivatives, unlisted securities, foreign listed†securities

KEY FEATURES

The Ralton High Yield Australian Shares Portfolio is designed for investors who:

  • Seek a consistent, above average and tax-efficient cash dividend yield;
  • Seek long term capital growth from a concentrated portfolio of Australian shares; and
  • The return profile is expected to be predominantly income with some capital growth from a concentrated portfolio of Australian shares. In addition, it has exhibited lower volatility when compared to the benchmark
  • Distributions can be expected to include a high amount of franking credits
  • Have a long term investment horizon of at least five years and accept the risk of equity markets.

The value style strategy is applicable as a core holding of an investor's Australian equities exposure.

PERFORMANCE

To 30 November 2017 1 Month 3 Month 6 Month 1 Year 3 Years (p.a.) 5 Years (p.a.) Since incep (p.a.)
Ralton High Yield Australian Shares Model Portfolio 0.5% 3.9% 3.7% 15.0% 10.5% 13.7% 8.1%
S&P/ASX 300 Accumulation Index % % % % % % %
Outperformance 0.5% 3.9% 3.7% 15.0% 10.5% 13.7% 8.1%

Past performance is not a reliable indicator of future performance. The performance is quoted before fees and expenses. This information is provided for general comparative purposes. Positive returns, which the Funds are designed to provide, are different regarding risk and investment profile to index returns. 

PLATFORMS

  • AMP Personalised Portfolio Service
  • Hub24
  • Linear
  • netwealth
  • Praemium

For more information, contact John Clothier, General Manager, Distribution on +61 408 488 549.