Real Return Focus
Portfolio Fund Facts Sheet
This portfolio is managed within what Investment Solutions regards to be moderate investment parameters.
The investment managers selected for this portfolio are given specific mandates aimed at providing an investment return of 6% a year above inflation over any three-year rolling period. Investment diversification is achieved by investing in equities, bonds, cash and alternative investments.
Over the longer term, returns should be less volatile but lower than for a typical balanced portfolio because of the investment strategies of the managers, which may include investments in derivative instruments.
The global component is invested in the Conserver Global Portfolio, which has a conservative investment profile, with allocation to global equities, bonds, cash and alternative investments. However, if the investor elects to invest in the combined portfolio (ie the local as well as the global component) the volatility of returns of the combined portfolio and the tracking error relative to the local inflation target may increase.
Members may switch their benefits from one IS portfolio to one of the other IS portfolios at any time during the year. Alexander Forbes allows members one free switch per calendar year.