RISK DEFINED MANAGED PORTFOLIOS
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.
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 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:
- Women’s Community Shelters, which works with communities to establish short term emergency accommodation and support.
- Love Mercy Foundation, which increases access to education, health care and income generation for families suffering after decades of civil war in Uganda.
- Australian Conservation Foundation, which advocates to protect nature and stop climate damage.
- Green Fleet, which aims to protect the climate by restoring forests.
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 | |
|---|---|---|---|
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| 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 |