RISK DEFINED MANAGED PORTFOLIOS

The Innova risk defined portfolios are constructed differently to traditional diversified portfolios. They are specifically designed to fund the most common goal buckets seen across investors. We have created a goals-based advice framework and web based tool to support Advisers who wish to tailor our portfolio solution to their clients’ goals and objectives. You can read more about this here.

We believe, as evidence would suggest, that asset allocation is the most effective tool for managing risk in a portfolio. Therefore, we have no long-term asset allocation defined for these portfolios and use risk based benchmarks instead. This is because the risk inherent in each asset can vary over time and is highly dependent on valuation and so we tightly control for risk by allowing the asset allocation to vary across wider bands than usual.

We offer these portfolios in both an unconstrained format (our flagship series) and a lower cost format (our fundamental series).

For a client friendly guide to the risk defined portfolios, please download our client brochure here.

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Disclaimer: The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

For a copy of the full SQM research report on our risk defined portfolios please contact us and request a copy here.

Innova Lifestyle Preservation Portfolio Innova Wealth Creation portfolio Innova Aspiration portfolio
Performance reports (Fundamental) HUB24  |  CFS First Wrap HUB24  |  CFS First Wrap HUB24  | CFS First Wrap
Performance reports (Flagship) HUB24  |  Netwealth HUB24  |  Netwealth HUB24  |  Netwealth
Return objective (after fees) RBA Cash Rate + 1.5% RBA Cash Rate + 3% RBA Cash Rate + 5%
Maximum expected loss -5% -15% -40%
Maximum expected volatility 3% 8% 15%
Investment Management Fee 0.3588% 0.3588% 0.3588%
Minimum suggested timeframe 5 years 7 years 10 years

Sustainable Future ESG Managed Portfolios

Our ESG-focused portfolios employ our trademark risk management principles while also tilting the portfolio towards sectors with strong ESG credentials. The funds apply negative screens to potential investments while its positive screen is focused on supporting climate action, life on earth, sustainable resource use, gender equality, and health and wellbeing.

The negative screens range in strength from ruling out revenue exposure above 1% derived from problem areas (tobacco, weapons) to more than 10% (thermal coal mining, fossil fuel, alcohol, gambling, pornography), as well as companies that undergo severe discrimination controversies.

These portfolios will donate at least 20% of fund revenue to Australian charities helping fulfil the United Nation’s Sustainable Development Goals.

The charities that will initially receive funding through the Innova Sustainable Future Managed Account Solution include:

For more information, please download our sustainable future managed portfolio brochure here

Innova sustainable Future Balanced Portfolio Innova sustainable future Growth Portfolio
Performance reports HUB24  HUB24
Return objective (after fees) RBA Cash Rate + 3% RBA Cash Rate + 4%
Long term asset allocation 65% Growth Assets/35% Defensive Assets 85% Growth Assets/ 15% Defensive Assets
Investment Management Fee 0.3588% 0.3588%
Standard risk measure Medium to High High
Minimum suggested timeframe 6 years 7 years

TRADITIONAL MANAGED PORTFOLIOS

The Innova traditional portfolios utilise a Dynamic Asset Allocation (DAA) framework in conjunction with Innova’s proprietary portfolio construction and investment selection process to deliver sustainable real returns over time. These portfolios are designed with a traditional advice framework in mind and therefore are offered across the five traditional risk profiles on the risk/return spectrum – Conservative, Moderately Conservative, Balanced, Growth, and High Growth.

While they are labelled traditional because of the advice process they were designed for, they follow the same robust portfolio construction process as our other portfolio solutions, which is anything but traditional. The long term or neutral asset allocation acts as the risk constraint in our systematic process and the asset allocation bands are slightly more restrictive than what is seen in our risk defined portfolios.

Hover to see Disclaimer.

Disclaimer : The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

For a copy of the full SQM research report on our risk defined portfolios please contact us and request a copy here.

Innova Conservative Portfolio Innova Moderately Conservative Portfolio Innova Balanced Portfolio Innova Growth Portfolio Innova High Growth Portfolio
Performance reports HUB24  |  Netwealth   |  BT Panorama HUB24  |  Netwealth  |  BT Panorama  |  CFS First Wrap HUB24  |  Netwealth  |  BT Panorama  |  CFS First Wrap HUB24  |  Netwealth  |  BT Panorama  |  CFS First Wrap HUB24  |   Netwealth  |  BT Panorama
Return objective (after fees) RBA Cash Rate + 1.5% RBA Cash Rate + 2.5% RBA Cash Rate + 3% RBA Cash Rate + 4% RBA Cash Rate + 5%
Long term asset allocation 27% Growth Assets/ 73% Defensive Assets 47.5% Growth Assets/ 52.5% Defensive Assets 67.5% Growth Assets/ 32.5% Defensive Assets 87.5% Growth Assets/ 12.5% Defensive Assets 97.5% Growth Assets/ 2.5% Defensive Assets
Investment Management Fee 0.3588% 0.3588% 0.3588% 0.3588% 0.3588%
Standard risk measure Low to Medium Medium Medium to High High High
Minimum suggested timeframe 3 years 5 years 6 years 7 years 8 years

Bespoke Custom Managed Portfolio

Innova also has the capability to construct bespoke multi-asset portfolios that are tailored toward a client’s specific requirements. This can come in the form of preferences between active and/or passive management for example, but also allows Innova to understand your business’s clientele and how we can add value to your investment management outcomes.

Being part of a bespoke arrangement also comes with other value-adding services, including (but not limited to) the naming rights of your portfolios, assistance in establishing portfolio documentation and materials, as well as an independent quarterly review of your portfolios in the form of an investment committee.

Terms and conditions apply, however Innova encourages any business that is considering a bespoke SMA solution to reach out for further information.

Step One

Learn more about your practice’s investment philosophy, and your clients.

Step Two

Introduce Innova’s capabilities, including our portfolio solutions.

Step Three

Determine the suitability of our varying solutions to your needs, whether that be through our existing portfolios on platform, or via a tailored ‘bespoke’ offering.

Step Four

Construct multi-asset portfolios that can be used as a holistic offering for your practice.

Step Five

Work with you to ensure you’re comfortable with the final solution, including underlying manager selection and final asset allocation. 

Step Six

Commence a partnership that helps drive growth and successful outcomes for your business.

Goals-Based Simulator Tool

An important part of financial advice is the need to understand human behaviour. Clients may think they need advice about investments, retirement, cashflow and aged care, but what they really want to know is how to fund their lifestyle.

This is why Innova have built a simulator to allow advisers to deliver goals-based advice more efficiently. Our simulator allows you to input your clients goals and objectives to get a suggested allocation to three goal buckets, safety (low risk), lifestyle (medium risk) and future (high risk). We then run a hundred different simulations using a combination of historical and forward-looking returns. These simulations show you a range of potential outcomes in retirement based on your clients goals and financial situation.

We also allow you to save and re-run scenarios so that when it is time for your clients annual review you can demonstrate how they are tracking toward their financial goals.

Please contact us here if you want to learn more or would like a demonstration of the tool.

Safety Bucket Lifestyle Bucket Future Bucket
Safety Bucket Lifestyle Bucket Future Bucket
Purpose This bucket contains the goals which focus on your essential living requirements over the next 6 years This bucket contains goals that are longer term in nature and current funding sources may not always be sufficient to fund them This bucket contains goals that may be considered ‘nice to haves’ or goals with the longest time horizon
Examples Income needed to meet basic living expenses in retirement, shorter term once off expenses that cannot be modified in a market downturn Longer term goals that require some wealth creation and shorter-term goals that may be deemed non-essential Long term wealth creation to fund retirement spending, or funding low priority goals that may not be able to be funded from current sources
Investment Horizon 0-6 years 7-10 years 10 years plus
Expected return RBA Cash rate + 0% – 2% RBA Cash rate + 2% – 4% RBA Cash rate + 4% – 6%
Expected volatility 1% – 3% 3% – 7% 6% – 12%

CFS FirstChoice Managed Portfolios

Innova have partnered with CFS FirstChoice to deliver five traditional portfolios (for both super and pension) using Innova’s trademark approach to risk management and portfolio construction.

These are very similar to our traditional managed portfolio suite, with some slight differences in asset allocation and underlying manager selection. However, the expected long term asset allocation aligns with our other traditional portfolios and the risk factor framework utilised to construct these portfolios is also the same. The portfolios will be dynamically managed according to changing market conditions and the risk inherent in each underlying asset class and sub asset class.

You can read more about these portfolios here in our client friendly introduction brochure. 

The most recent portfolio allocations and fee estimates can be downloaded here

 

Innova Conservative Portfolio Innova Moderately Conservative Portfolio Innova Balanced Portfolio Innova Growth Portfolio Innova High Growth Portfolio
Return objective (after fees) RBA Cash Rate + 1.5% RBA Cash Rate + 2.5% RBA Cash Rate + 3% RBA Cash Rate + 3.5% RBA Cash Rate + 5%
Long term asset allocation 27% Growth Assets/ 73% Defensive Assets 47.5% Growth Assets/ 52.5% Defensive Assets 67.5% Growth Assets/ 32.5% Defensive Assets 78% Growth Assets/ 22% Defensive Assets 97.5% Growth Assets/ 2.5% Defensive Assets
Estimated Fee 0.83% 0.87% 0.94% 1.00% 1.01%
Standard risk measure Low to Medium Medium Medium to High High High
Minimum suggested timeframe 3 years 5 years 6 years 7 years 8 years
Performance reports Super  |  Pension Super  |  Pension Super  |  Pension Super  |  Pension Super  |  Pension