B. MOSES ASSET MANAGEMENT
Measured By Execution & Performance

BMAM Portfolio Fact Sheet

SINGLE SECTOR PORTOFLIO STRATEGY

The single sector assets are segregated by asset class and consist of a broad mix of passive and active, sector-specific exposures. Each sector is diversified by a combination of market capitalised, smart beta, and active exchange-traded products. Tailored solutions are available for direct holdings. The blend of assets is flexible and purpose-built to incorporate shifts in tactical themes and/or economic conditions.

Each single asset strategy is a purpose-built portfolio of assets designed to capture the asset class returns from a broad mix of assets specific to the asset class.

The blend of assets will typically cover:

  • Equities: ETF exposure and direct exposure to large-cap, mid-cap, and small-cap shares, including alternative growth assets such as infrastructure and private equity. The exposure may also include short strategies where available for risk purposes.
  • Property: ETF exposure to listed property and, from time-to-time direct property holdings.
  • Fixed Interest: ETF and direct exposure to Bonds (Government, Semi-Government, Corporate, Mortgage-backed securities (RMBS), Asset Backed securities (ABS), floating rate notes (FRN), cash, term deposits, and alternative assets such as loan notes and private debt.
  • Growth Alternatives: ETF and direct exposure to alternative growth assets such as private equity, infrastructure, commodities, managed funds, or listed investment trusts.
  • Defensive Alternatives: ETF and direct exposure to alternative defensive assets such as private debt, hedge funds, managed futures, managed funds, or listed investment trusts.
  • Cash: Platform cash account and term deposits.

 

Sector analysis is undertaken to identify all the products available in the sector and segregated into market capitalisation buckets. Factor-based products are segregated from pure and blended style assets and return series evaluated via quantitative studies that include but are not limited to:

  • Historical returns (annualised)
  • Standard deviation of returns
  • Downside capture ratio
  • Upside capture ratio
  • Sharpe ratio.

The initial screen is to sort the products into correct strategy, style, duration, credit hedged or unhedged currency, and risk buckets so that the Fund Manager and BMAM can view the results. The results are then ranked to provide a framework for selection.

Macroeconomic views are overlayed across the sector, and industry analysis is undertaken. Capital market assumptions are considered, and the risk/return map is constructed to incorporate weighted target exposures. 

The resultant exposures are modelled to ensure the overall mix of assets is in line with stated asset class objectives.

Transaction Costs

Brokerage is incurred when buying or selling listed shares. The brokerage costs are as follows:

Minimum trade:  For amounts under $20,000, the minimum brokerage of $20.00 is incurred. For example, an investment of $10,000 will incur a brokerage of $20.00.

For transactions over $20,000, the brokerage rate is 0.10% of the investment amount. For example, a $100,000 investment will incur a brokerage of $100.

Feature

Description

 

SMA Name

B. Moses Australian Equity Income SMA

 

Investment Sub-Adviser

B. Moses Asset Management Pty Ltd

 

Inception Date

January 2018

 

Investment Objective

The portfolio aims to deliver tax-effective income and growth greater than the benchmark, over a 5-year timeframe, after fees.

 

Investment Strategy

The B. Moses Australian Equity Income SMA aims to provide a diversified mix of domestic assets sourced from listed and direct investments, exchange-traded funds (“ETFs”), managed funds, or listed investment trusts.

 

Benchmark

S&P/ASX 200 (TR) Index

 

Minimum number of securities

3

 

Maximum number of securities

40

 

Asset Allocation

Allocation Range

Target Weight

Australian Equities

25% to 75%

68.0%

Australian Fixed Interest

0% to 50%

17.0%

Cash (minimum 2% cash)

2% to 50%

15.0%

Investment Universe

Listed Australian equities, ETFs, listed investment companies, managed funds, and cash.

 

Maximum single security or fund weighting

100%

 

Minimum suggested timeframe

5 years

 

Minimum initial investment $

$500,000

 

Minimum additional investment $

$25,000

 

Minimum withdrawal

$25,000

 

Rebalance frequency

Sub-adviser discretion

 

Investment Manager Fee (estimated range)

0.25 to 0.75% (underlying product fees)

 

Performance fee

Investment Manager, Sub-Adviser may be entitled to performance fees.

 

Feature

Description

 

SMA Name

B. Moses International Equity SMA

 

Investment Sub-Adviser

B. Moses Asset Management Pty Ltd

 

Inception Date

January 2018

 

Investment Objective

After fees, the portfolio aims to deliver a return greater than the benchmark over a 5-year timeframe.

 

Investment Strategy

The B. Moses International Equity SMA aims to provide a diversified mix of global assets sourced from listed and direct investments, exchange-traded funds (“ETFs”), managed funds, or listed investment trusts.

 

Benchmark

MSCI World (ex-Australia) Index Net Total Return (AUD)

 

Minimum number of securities

3

 

Maximum number of securities

40

 

Asset Allocation

Allocation Range

Target Weight

Global Equities

70% to 98%

80.0%

Cash (minimum 2% cash)

2% to 30%

20.0%

Investment Universe

Listed Global equities, ETFs, listed investment companies, managed funds, and cash.

 

Maximum single security or fund weighting

100%

 

Minimum suggested timeframe

5 years

 

Minimum initial investment $

$500,000

 

Minimum additional investment $

$25,000

 

Minimum withdrawal

$25,000

 

Rebalance frequency

Sub-adviser discretion

 

Investment Manager Fee (estimated range)

0.25 to 0.75% (underlying product fees)

 

Performance fee

Investment Manager, Sub-Adviser may be entitled to performance fees.

 

MULTI-ASSET PORTFOLIO STRATEGY

The BMAM suite of Managed Account SMA’s/MDA investment objective is to invest in a portfolio of securities that aims to achieve high-risk adjusted returns while delivering regular cash flows from dividends or coupons. Each strategy has an individual risk rating and has a return objective of better than the market return for a portfolio of like assets over the medium to a longer-term time frame of between three and seven years.

Multi-Asset Risk Profile

Growth (%)

Defensive (%)

Balanced Portfolio (60/40)

60%

40%

High Conviction Growth Portfolio (80/20)

80%

20%

The Strategic Asset Allocation (“SAA”) for each mandate has been determined using historical data for each asset class and modelling to determine the optimal risk/reward profile for each underlying risk mandate. The Sub-Adviser is mindful of industry standards for the classification of that multi-asset class definition and the expectations of the end investor.

BMAM Tactical Asset Allocation (“TAA”) is determined by constantly revisiting prevailing asset allocation and the investment merits of each underlying asset class and tilting accordingly where they believe they can add value, mindful to continuously optimize the risk/ return characteristics of the overall portfolios.

BMAM’s investment approach combines fundamental and quantitative analysis elements and top-down and bottom-up views. The themes and tactical asset allocation changes in portfolio construction stem from changes in the business cycle and the economic cycle.

The Multi-Asset portfolios are constructed so that each strategy’s underlying asset allocation targets the investor’s desired risk profile. Each underlying strategy has been modelled to achieve a risk/reward outcome based on the forward-looking capital market growth and income expectations for returns over the next 5 to 10 years. Each asset class has a strategic or core holding coupled with a thematic or theme-specific exposure. The choice of the underlying asset class exposure (product or direct holding) mix is designed to capture the expected returns across the economic or business cycle.

A Fund manager’s investment strategy (or style) will ebb and flow across the economic and business cycle, thus capturing the returns that depend on their investment approach.

 

 

        Growth markets attract investors seeking growth opportunities. The growth investing style is based on the underlying stock selection focusing on companies with high earnings growth rates, high return on equity, high-profit margins, and low dividend yields.

 

 

        Value markets attract investors seeking defensive opportunities. The value style of investing focuses on buying a strong company at a fair price. Thus, Value Managers look for a low price-to-earnings ratio, low price-to-sales ratio, and a higher dividend yield.

 

 

        Sideways trending markets attract investors that are neither growth nor value but simply want to capture the overall market opportunities. They tend to have a blend of both growth and value stocks in their portfolio, so the outcome for investors is neutral in terms of style.

 

 

Markets tend to follow the business cycle, which is driven by the economic cycle, and styles such as rotational tend to switch from growth to value depending on what stage of the cycle the economy is trending.

Each single-strategy or multi-asset strategy is tailored specifically to achieve a defined risk/reward outcome over a medium to a longer-term timeframe.

 

The Strategic Asset Allocation (“SAA”) for each portfolio has been determined using historical data for each asset class and modelling to determine the optimal risk/reward profile for each underlying portfolio. FAM has also been mindful of industry standards for the classification of that multi-asset class and the expectations of the end investor.

 

  1. Moses Asset Management Pty Ltd also applies a tactical overlay which is determined by constantly revisiting their prevailing asset allocation and the investment expectations and assumptions of each underlying asset class and adjusting accordingly where they believe they can take advantage of investment themes or developing trends while mindful to continuously optimise the risk/return characteristics of the overall portfolio.

 

Feature

Description

 

SMA Name

B. Moses Balanced (60/40) SMA

 

Investment Sub-Adviser

B. Moses Asset Management Pty Ltd

 

Inception Date

September 2022

 

Investment Objective

After fees, the portfolio aims to deliver a return greater than the benchmark over a 5-year timeframe.

 

Investment Strategy

The B. Moses Asset Management Pty Ltd Balanced (60/40) SMA aims to provide a diversified mix of local and global assets sourced from listed and direct investments, exchange-traded funds (“ETFs”), managed funds, or listed investment trusts. 

 

Benchmark

Custom blend of passive index exposures.

 

Minimum number of securities

5

 

Maximum number of securities

40

 

Asset Allocation

Allocation Range

Target Weight

Australian Equities

10% to 50%

22.5%

International Equites

10% to 50%

27.5%

Australian Property

0% to 10%

2%

Global Property

0% to 10%

3%

Growth Alternatives

0% to 20%

5%

Australian Fixed Income

0% to 30%

17.5%

International Fixed Income

0% to 30%

10%

Defensive Alternatives

0% to 30%

0%

Cash (minimum 2% cash)

2% to 25%

12.5%

Investment Universe

Australian equities, international equities, ETFs, listed managed funds, fixed income securities, managed funds, and cash.

 

Maximum single security or fund weighting

100%

 

Minimum suggested timeframe

5 years

 

Minimum initial investment $

$500,000

 

Minimum additional investment $

$50,000

 

Minimum withdrawal

$50,000

 

Rebalance frequency

Sub-adviser discretion

 

Investment Manager Fee (estimated range)

0.25 to 0.75% (underlying product fees)

 

Performance fee

Investment Manager, Sub-Adviser may be entitled to performance fees.

 

Feature

Description

 

SMA Name

B. Moses High Conviction Growth (80/20) SMA

 

Investment Sub-Adviser

B. Moses Asset Management Pty Ltd

 

Inception Date

January 2018

 

Investment Objective

After fees, the portfolio aims to deliver a return greater than the benchmark over a 5-year timeframe.

 

Investment Strategy

The B. Moses Asset Management Pty Ltd High Conviction Growth (80/20) SMA aims to provide a diversified mix of local and global assets sourced from listed and direct investments, exchange-traded funds (“ETFs”), managed funds, or listed investment trusts. 

 

Benchmark

Custom blend of passive index exposures.

 

Minimum number of securities

5

 

Maximum number of securities

40

 

Asset Allocation

Allocation Range

Target Weight

Australian Equities

15% to 50%

32.5%

International Equites

15% to 50%

37.5%

Australian Property

0% to 20%

2%

Global Property

0% to 20%

3%

Growth Alternatives

0% to 20%

5%

Australian Fixed Income

0% to 20%

8.75%

International Fixed Income

0% to 20%

5.25%

Defensive Alternatives

0% to 20%

0%

Cash (minimum 2% cash)

2% to 20%

6.0%

Investment Universe

Australian equities, international equities, ETFs, listed managed funds, fixed income securities, managed funds, and cash.

 

Maximum single security or fund weighting

100%

 

Minimum suggested timeframe

5 years

 

Minimum initial investment $

$500,000

 

Minimum additional investment $

$50,000

 

Minimum withdrawal

$50,000

 

Rebalance frequency

Sub-adviser discretion

 

Investment Manager Fee (estimated range)

0.25 to 0.75% (underlying product fees)

 

Performance fee

Investment Manager, Sub-Adviser may be entitled to performance fees.