SOLUTIONS

RISK DEFINED MANAGED PORTFOLIOS

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.

Innova’s ‘Risk-Defined’ managed portfolios focus on ensuring that portfolio risk is managed within very specific limits. This is achieved through the application of Innova’s proprietary risk allocation process within a relatively unconstrained asset allocation framework. We use various risk measures as the benchmarks for these portfolios and then allow the asset allocation to vary according to the level of risk inherent in each asset class.

This investment style is offered in three investment options which correspond to three primary goal-based buckets; Lifestyle Preservation, Wealth Creation, and Aspiration. These portfolios are therefore designed to be used within a goals-based advice framework. This type of advice framework encourages investors to think about and prioritise their goals. Then an investment strategy is selected to best fit the objective of that goal.

Innova offer these investment options in both a high functionality format (‘Flagship’) and a low-cost format (‘Fundamental’).

In the Flagship format, the portfolios utilise the extensive suite of investment vehicles and strategies on offer via our preferred platform partners.  This provides tremendous flexibility in investment structure and may include (but is not limited to), managed funds, alternative investment strategies, ETPs and SMAs.

In the Fundamental format, index investments are combined with efficiently priced ETPs and SMAs in a highly sophisticated, transparent package for clients. The fundamental portfolios are available via a managed account structure on HUB24.

 

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

 

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

TRADITIONAL MANAGED PORTFOLIOS

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.

 

 

Innova’s traditional portfolios utilise a Strategic Asset Allocation (SAA) 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.

These portfolios are dynamically adjusted based on the forecasts produced by Innova’s proprietary system, so whilst they are labelled ‘traditional’ because of the advice process they were designed for, they are tightly controlled in terms of risk and follow a rigorous systematic process that is anything but ‘traditional’. These portfolios are currently offered via a managed account structure on HUB24, Netwealth and via MDA on CFS First Wrap.

For more information about the benefits of a managed account structure, please download our client friendly brochure here.

Advisers can also recommend clients invest in the ‘managed risk’ series of traditional portfolios (Moderately Conservative, Balanced, Growth and High Growth) which utilise the ‘Even Keel’ managed risk overlay run by Milliman Australia. This overlay is a dynamic risk management strategy that adjusts the equity exposure in the portfolio according to specific market conditions. These portfolios are currently available via a managed account structure on HUB24.

 

For a copy of the full SQM research report for our traditonal portfolios please contact us and request a copy here

 

For more information about the Even Keel strategy, please download their Adviser brochure here.