Diversified growth funds
Diversified growth funds invest in a range of asset classes, which are typically more aggressive than balanced funds.
A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. The portfolio mainly consists of companies with above-average growth that reinvest their earnings into expansion, acquisitions, and/or research and development (R&D).
Diversified growth funds aim to provide long term capital growth and some distributions by investing in a range of assets with an emphasis on growth assets. Typically growth funds targets a 30% allocation to income assets and 70% to growth asset classes.
| Investment Options | Risk Level | Investment Objective | Investment Strategy |
|---|---|---|---|
| Diversified Growth Funds | |||
| Alpha All Growth Fund | 6- High | The Fund aims to provide a return (before fees, and expenses) that exceeds the Fund’s Benchmark (RBA Cash Rate plus 4.0%) over the medium to long term, with a focus on delivering a combination of both capital growth and income. | This Fund is designed for investors seeking to access a balanced investment strategy that provides an appropriate combination of both capital growth and income. The Fund is broadly diversified across a range of asset classes, including Australian and international shares, property securities, infrastructure securities, Australian and international fixed interest, cash and alternatives. The Fund may also use derivatives. |
| Providence Investment Fund | 6- High | The Fund’s objective is to generate consistent growth and income returns over the medium to long term. | The Providence fund is a diversified portfolio targeted towards a long-term growth strategy, with a focus on long-term compound growth. It leverages off the Providence Investment Committees, tactical asset allocation decisions and access to external fund managers via Exchange Traded Funds and unlisted managed funds. It has a long-term investment horizon. |
| Dimensional Sustainability World Allocation 70/30 Trust Fund | 6- High | To provide a total return, consisting of capital appreciation and income, by gaining exposure to a diversified portfolio of securities listed on approved developed and emerging markets, and domestic and global fixed interest securities. Exposure is adjusted to take into account certain Sustainability Considerations. The Trust will seek to target approximately 70% exposure to equities and 30% exposure to fixed interest assets.
The Trust is not managed with the objective of achieving a particular return relative to a benchmark index. However, to compare the performance of the Trust with a broad measure of market performance, reference may be made to a combination of market indices based on the strategic asset allocation of the Trust. | The Trust may suit those investors seeking exposure to a diversified portfolio primarily invested in equities. In particular, the Trust may suit those investors who seek to have certain Sustainability Considerations taken into account in the investment decision making process of the Trust. Investors in this Trust will be exposed to share market volatility. Normally, the Trust will gain some or all of its exposure by investing in other funds managed by the Dimensional Group (including other Dimensional Wholesale Trusts) that invest in equity and fixed interest securities. The Trust will seek to target approximately 70% exposure to equities (including real estate securities) and 30% exposure to fixed interest (including cash), as set out below in the asset allocation. The actual exposure may vary from the target exposure due to trading, portfolio management or market considerations. |
| Vanguard Diversified Growth Index Fund | 6 – High | The Vanguard Growth Index Fund 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. | The fund provides low cost access to a range of sector funds, offering broad diversification across multiple asset classes. The fund is biased towards growth assets and is designed for Investors seeking long term capital growth. The fund targets a 30% allocation to income asset classes and a 70% allocation to growth asset classes. |
| Vanguard Diversified High Growth Index Fund | 6 – High | The Fund 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. | The Fund provides low cost access to a range of sector funds, offering broad diversification across multiple asset classes. The Fund invests mainly in growth assets and is designed for investors with a high tolerance for risk who are seeking long term capital growth. The Fund targets a 10% allocation to income asset classes and a 90% allocation to growth asset classes. |
| CARE High Growth Fund | 6 – High | The portfolio aims to provide investors a total return comprising capital growth and income equal to or greater than CPI + 5.5%. | The portfolio investment strategy offers investors access, primarily via market index Exchange-Traded Funds (ETF), to the underlying CAREphilosophy where funds are invested across a Core, an Active and an Enhanced component. The strategy is suitable for investors who seek predominately exposure to growth assets such as Australian shares, international shares, property and alternatives. |
| Dimensional World Allocation 70/30 Trust Fund | 6 – High | To provide a total return, consisting of capital appreciation and income, by gaining exposure to a diversified portfolio of companies and real estate securities listed on approved developed and emerging markets, and domestic and global fixed interest securities. The Fund is not managed with the objective of achieving a particular return relative to a benchmark index. However, to compare the performance of the Fund with a broad measure of market performance, reference may be made to a combination of market indices based on the strategic asset allocation of the Fund*. | The Fund will seek to target approximately 70% exposure to equities and 30% exposure to fixed interest assets. The Trust will gain some or all of its exposure by investing in other funds managed by the Dimensional Group (including other Dimensional Wholesale Trusts) that invest in equity, real estate and fixed interest securities. |
| Betashares Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF Fund | 7 – Very High | The Betashares Wealth Builder Diversified All Growth Geared (30-40% LVR) Complex ETF is to provide geared exposure to the returns of a diversified share portfolio, invested in equities from Australia, global developed and emerging markets. There is no assurance or guarantee that the returns of the Fund will meet its investment objective. The Fund intends to provide geared exposure to the returns of the Australian and global share market in all market conditions. This means in a falling share market, investors should not expect the Fund’s level of gearing to be reduced below the anticipated gearing range from time to time or investments to be repositioned, in an attempt to avoid or reduce losses. | The Fund intends to implement the investment strategy by combining application money from investors with borrowed funds and investing in a portfolio that provides exposure to a broadly diversified basket of Australian and global equities. The Fund may hold these securities directly or obtain this exposure by holding shares or units of one or more exchange traded funds. The Fund intends to obtain the equity exposure by investing in the Underlying ETFs. The Fund’s borrowings will be denominated in Australian dollars. The Fund is ‘internally geared’, which means the Fund borrows the money instead of investors. Gearing can be expected to magnify both investment gains and losses, and consequently significant variations in the value of the Fund’s investments can be expected. Australian and US dollar cash and cash equivalents may be held in the Fund. |
*For further details please refer to www.dimensional.com.au. Investors should note that the composite index is referred to for comparison purposes only. The performance of the Trust may differ significantly from the index.
