review of ioof multimix trusts

40
Presented by Review of IOOF MultiMix Trusts September quarter 2012 IOOF Investment Management Limited 29 October 2012 Not sig ned off : D O NOT D ISTRIBUTE

Upload: armand-fowler

Post on 02-Jan-2016

69 views

Category:

Documents


3 download

DESCRIPTION

IOOF Investment Management Limited. 29 October 2012. Review of IOOF MultiMix Trusts. Not signed off: DO NOT DISTRIBUTE. September quarter 2012. Disclaimer. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Review of  IOOF  MultiMix  Trusts

Presented by

Review of IOOF MultiMix Trusts September quarter 2012

IOOF Investment Management Limited

29 October 2012Not s

igned off: D

O NOT D

ISTRIBUTE

Page 2: Review of  IOOF  MultiMix  Trusts

2

DisclaimerIssued by IOOF Investment Management Limited (IIML), ABN 53 006 695 021, AFSL 230524. Client Services 1800 002 217. Website www.ioof.com.au . IIML is a company within the IOOF Group of companies, consisting of IOOF Holdings Limited ABN 49 100 103 722 and its related bodies corporate. This is general advice only and does not take into account, your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser. You should obtain and consider a copy of the Product Disclosure Statement available from us or your financial adviser, before you acquire a financial product. IIML, its employees and directors may receive remuneration up to 0.3% of the amount invested. Further details are available in the PDS. Ratings are only one factor to be taken into account when deciding whether to invest. For more information on the meaning of these ratings and the rating scales used, please refer to the Lonsec websites at www.lonsec.com.au

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Neither IIML nor any company in the IOOF group guarantees the performance of any fund or the return of an investor’s capital.

Past performance is not indicative of future performance. The Lonsec Limited (“Lonsec”) ABN 56 061 751 102 rating (assigned as follows: IOF0092AU-November 2011; IOF0098AU- November 2011; IOF0094AU- November 2011; IOF0095AU-November 2011; UFM0051AU-November 2011; IOF0093AU- November 2011; IOF0097AU- November 2011; IOF0090AU-November 2011) presented in this document is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). It is not a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec receives a fee from the fund manager for rating the product(s) using comprehensive and objective criteria.

Review of IOOF MultiMix Trusts September 2012

Page 3: Review of  IOOF  MultiMix  Trusts

Agenda

1. Financial markets review – September 2012

2. Market outlook

3. MultiMix single-sector trusts review – September 2012

4. MultiMix diversified trusts review – September 2012

5. Strategic tilting

6. Appendices

3Review of IOOF MultiMix Trusts September 2012

Page 4: Review of  IOOF  MultiMix  Trusts

Financial markets review September 2012

Page 5: Review of  IOOF  MultiMix  Trusts

Investment returns for major asset classes

5

Total returnMajor listed asset classes

Year to 30

Sep 2010

%

Year to 30

Sep 2011%

Year to 30

Sep 2012

%

Quarter to

30 Sep 2012

%

Month to 30

Sep 2012

%

Australian shares 0.65 -8.71 14.46 8.75 2.18

International shares (in A$ - unhedged)

-2.79 -4.52 13.59 5.05 2.11

International shares (hedged) 8.97 -1.26 24.61 6.28 2.44

Australian bonds 7.34 9.04 9.56 1.98 0.97

Global bonds (hedged into $A) 11.02 7.79 10.06 2.86 0.67

Australian listed property trusts -4.52 -6.29 28.90 6.68 1.20

Global listed property trusts (hedged) 20.57 0.00 30.17 3.77 -0.06

Review of IOOF MultiMix Trusts September 2012

Past performance is not indicative of future performance. Source: IRESS

Page 6: Review of  IOOF  MultiMix  Trusts

Short term returns have improved

6Review of IOOF MultiMix Trusts September 2012

SuperRatings Fund Crediting Rate Survey

3 Months 1 Year 3 Years

  Return Quartile Return Quartile Return Quartile

IOOF MultiMix Australian Shares Trust 7.7 3rd 10.6 4th 0.9 3rdIOOF MultiMix International Shares Trust 5.3 2nd 7.7 4th 0.1 3rdIOOF MultiMix Diversified Fixed Interest Trust 2.7 1st 8.6 2nd 7.8 3rdIOOF MultiMix Hi Growth Trust 5.5 1st 9.2 4th 1.3 4thIOOF MultiMix Balanced Growth Trust 5.0 1st 9.0 4th 3.2 4thIOOF MultiMix Moderate Growth Trust 3.8 2nd 8.5 3rd 3.9 3rdIOOF MultiMix Conservative Growth Trust 3.2 1st 8.4 2nd 5.1 3rdIOOF MultiMix Capital Secure Trust 2.0 1st 6.6 1st 5.9 1stIOOF MultiMix Cash Enhanced Trust 1.3 2nd 4.7 2nd 4.4 2nd

Past performance is not indicative of future performance. Source: SuperRatingsIOOF 'Corporate 100' performance and quartile ranking

Page 7: Review of  IOOF  MultiMix  Trusts

Financial markets review

• S&P/ASX 300 Accumulation Index closed the period 8.75% higher, continued to be volatile

• Driven in part by further bond purchases announced by European and US central banks

• Actions of policy makers in Europe, US, and China are key

• Investors remained cautious, preferring defensive stocks

• MSCI All Countries World ex-Australia Index ($A) appreciated 5.19% in unhedged AUD terms

• Emerging markets performed even better with a return of 6.20%

7Review of IOOF MultiMix Trusts September 2012

Page 8: Review of  IOOF  MultiMix  Trusts

Financial markets review

• Australian bonds returned 1.98%

• International bonds returned 2.86%

• Government bond markets benefited in part from the promise of further quantitative easing in the US and the UK, as well as the introduction of the ECB’s new bond-buying initiative

• Softer economic data globally also helped although gains were limited by a marked improvement in risk sentiment

• The recent sustained run of strong fixed interest performance suggests further gains may be more difficult to come by

• Australian property gained 6.68% over the September quarter, underperforming the broader market

• AREITs outperformed Global REITs which were up 3.48%

8Review of IOOF MultiMix Trusts September 2012

Page 9: Review of  IOOF  MultiMix  Trusts

Market outlook

• European crisis: positive action taken but structural issues still persist. Ongoing focus on Spain, Portugal and Italy

• United States: housing improving which is important but corporate earnings turning over and what about ‘fiscal cliff’?

• China: slowdown occurring but still high base growth. Will stimulus measures work?

• Australia: possible further rates cuts anticipated as strong dollar impacts domestic economy

• Equity Markets: remain cheap relative to bonds and fair value relative to own metrics

• Global fixed income: remains an expensive safe haven but what is the catalyst for an increase in yields?

• Currency markets remain volatile and are hostage to macroeconomic events

9Review of IOOF MultiMix Trusts September 2012

Page 10: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix single-sector trusts review September 2012

Page 11: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Australian Shares Trust

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML

Sep 2012

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Australian Shares Trust 7.45 11.53 -0.66

S&P/ASX 300 Accumulation Index 8.75 14.46 1.69

Excess return -1.30 -2.93 -2.35

11

Integrity 13.52%

Perennial15.09%

Alliance Bernstein 14.92%

Merlon7.11%

Solaris17.84%

Vinva16.69%

Legg Mason7.36%

IIML3.91%

Allocations may not sum to 100% due to rounding

Review of IOOF MultiMix Trusts September 2012

Boutique Manager Portfolio3.56%

Page 12: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix International Shares Trust

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix International Shares Trust 6.08 9.67 0.42

MSCI All Countries World ex Australia $A Index * 5.19 13.01 1.61

Excess return 0.89 -3.34 -1.19

Sep 2012

12

SSGA 28.97%

LSV Asset Management18.09%

Neuberger Berman14.50%

Wellington9.85%

Perennial4.76%

Credit Suisse Asset Management 6.27%

*International shares benchmark changed from MSCI World ex Australia $A Index (unhedged) from October 2011. Figures shown here are a composite of both indexes.Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML

TT International 12.22% Esemplia 5.34%

Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 13: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Diversified Fixed Interest Trust

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

MultiMix Diversified Fixed Interest Trust 3.04 10.36 9.15

50% UBS Comp Bond Index /50% Barclays Capital Global Agg Index

2.42 9.83 9.13

Excess return 0.62 0.53 0.02

PIMCO (Aust fixed interest) 11.76%

Loomis Sayles 12.16%

Sep 2012

Brandywine12.95%

IIML (Cash) 5.56%

IIML (Income) 12.61%

Perennial (Aust fixed interest) 15.83%

Perennial (Cash) 9.44%

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML

13

PIMCO (Intl fixed interest)14.80%

Review of IOOF MultiMix Trusts September 2012

Western Asset Management4.91%

Allocations may not sum to 100% due to rounding

Page 14: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Cash Enhanced Trust

Perennial35.41%

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Cash Enhanced Trust 1.59 5.75 5.79

UBSA Bank Bill Index 0.91 4.36 4.55

Excess return 0.68 1.39 1.24

IIML64.59%

Sep 2012

14Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 15: Review of  IOOF  MultiMix  Trusts

MultiMix Wholesale Trusts review September 2012

Page 16: Review of  IOOF  MultiMix  Trusts

MultiMix Wholesale Australian Property Trust

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

MultiMix Wholesale Australian Property Trust 6.54 28.96 5.75

S&P/ASX 300 Property Trust Accum Index 6.68 28.88 4.86

Excess return -0.14 0.08 0.89

Colonial First State22.96%

Challenger75.16%

Sep 2012

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML

16

Cash 1.89%

Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 17: Review of  IOOF  MultiMix  Trusts

MultiMix Wholesale International Property Trust

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

MultiMix Wholesale International Property Trust 4.80 31.13 12.82

UBS Global Investors ex Aust AUD hedged net TR 3.48 30.54 18.09

Excess return 1.32 0.59 -5.27

Cohen & Steers20.53%

Perennial54.45%

Sep 2012Cash0.94%

Performance is net of management costs and expenses Past performance is not a reliable indication of future performance. Source: IIML

17Review of IOOF MultiMix Trusts September 2012

BT Global24.08%

Allocations may not sum to 100% due to rounding

Page 18: Review of  IOOF  MultiMix  Trusts

MultiMix Wholesale Alternative – Defensive Trust

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

MultiMix Wholesale Alternative – Defensive Trust 1.43 7.81 6.29

Composite benchmark* 2.42 9.83 9.32

Excess return -0.99 -2.02 -3.03

Infrastructure25.57%

Credit opportunities11.68%

Sep 2012

Cash49.49%

Performance is net of management costs and expenses Past performance is not a reliable indication of future performance. Source: IIML*For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

18Review of IOOF MultiMix Trusts September 2012

Subordinated debt13.26%

Allocations may not sum to 100% due to rounding

Page 19: Review of  IOOF  MultiMix  Trusts

MultiMix Wholesale Alternative – Growth Trust

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

MultiMix Wholesale Alternative – Growth Trust 3.62 4.03 8.17

Composite benchmark* 5.19 13.01 8.23

Excess return -1.57 -8.98 -0.06

Discretionary hedge funds11.67%

Systematic hedge funds51.65%

Sep 2012

Cash13.49%

Performance is net of management costs and expenses Past performance is not a reliable indication of future performance. Source: IIML*For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

19Review of IOOF MultiMix Trusts September 2012

Special situations5.41%

Allocations may not sum to 100% due to rounding

Private equity17.78%

Page 20: Review of  IOOF  MultiMix  Trusts

IOOF Trusts review September 2012

Page 21: Review of  IOOF  MultiMix  Trusts

IOOF Wholesale Income Trust

Total return for periods ending 30 September 2012

3 Months %

1 Year %

3 Years% pa

IOOF Wholesale Income Trust 3.33 9.91 9.41

UBS Credit FRN Index (from 31/12/10)* 1.99 6.54 5.35

Excess return 1.34 3.37 4.06

Cash0.93%

Perennial Income Fund 99.07%

Sep 2012

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML*Performance figure is a composite of UBSA Bank Bill Index and the UBS Credit FRN Index.

21Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 22: Review of  IOOF  MultiMix  Trusts

IOOF Cash Management Trust

Total return for periods ending 30 September 2012

1 Month%

3 Months%

1 Year %

3 Years% pa

5 Years % pa

IOOF Cash Management Trust 0.32 1.00 4.54 4.58 5.00

UBSA Bank Bill Index 0.31 0.91 4.36 4.55 5.12

Excess return 0.01 0.09 0.18 0.03 -0.12

• FUM: $1.4b

• Weighted average duration: 55 days

• Term deposits: 48%

• Maximum exposure: CBA 28%

• A1+ exposure: 66%

• A1 exposure: 21%

• A2 exposure: 13%

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML

22Review of IOOF MultiMix Trusts September 2012

Page 23: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix diversified trusts reviewSeptember 2012

Page 24: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Balanced Growth Trust

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML *For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Balanced Growth Trust 5.26 10.57 3.23

Composite benchmark* 5.40 14.63 5.24

Excess return -0.14 -4.06 -2.01

Sep 2012

24

Property7.90%

International shares

29.71%

Cash 5.74%

Australianshares

29.70%Fixed interest 17.16%

Alternatives9.80%

Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 25: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Balanced Growth TrustAttribution for September quarter:

• The bulk of the underperformance was a result of the underperformance within the Australian shares portfolio

• Low levels of hedging contributed negatively to performance• The Alternatives – growth portfolio contributed negatively to performance as it

underperformed its equities benchmark• Positive performance from the international equities portfolio contributed to

performance• Positive performance from the diversified fixed interest portfolio contributed to

performance• Positive performance from the international listed property portfolio contributed

to performance

25Review of IOOF MultiMix Trusts September 2012

Page 26: Review of  IOOF  MultiMix  Trusts

Asset allocation update

IOOF MultiMix Balanced Growth Trust

Asset class Target allocation (%)

Range(%)

Actual as at September 2012

(%)

Cash & short-term securities 3 0-15 5.74

Diversified fixed interest 22 10-35 17.16

Alternative – defensive 3 0-15 2.61

Property 10 0-20 7.90

Australian shares 30 20-40 29.70

International shares 25 15-35 29.71

Alternative – growth 7 0-20 7.19

100 100

26Review of IOOF MultiMix Trusts September 2012

Page 27: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Moderate Trust

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML *For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Moderate Trust 4.01 10.04 4.50

Composite benchmark* 4.57 13.69 5.59

Excess return -0.56 -3.65 -1.09

Sep 2012

27

Property8.29%

International shares

14.85%

Cash 22.71%

Australianshares

18.30%

Fixed interest 27.07%

Alternatives8.78%

Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 28: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Moderate Trust

Attribution for September quarter:

• The bulk of the underperformance was a result of an overweight allocation to cash

• Poor performance from the underlying Australian equities managers detracted from performance

• An underweight to equities, particularly Australian equities also contributed to the underperformance

• Positive performance within the fixed interest and cash asset classes contributed the bulk of value

• Positive performance from the international equities asset class also contributed to performance

28Review of IOOF MultiMix Trusts September 2012

Page 29: Review of  IOOF  MultiMix  Trusts

Asset allocation update

IOOF MultiMix Moderate Trust

Asset class Target allocation (%)

Range(%)

Actual as at September 2012

(%)

Cash & short-term securities 5 0-25 22.71

Diversified fixed interest 35 25-45 27.07

Alternative – defensive 5 0-15 3.86

Property 10 0-20 8.29

Australian shares 22 10-35 18.30

International shares 18 5-30 14.85

Alternative – growth 5 0-15 4.92

100 100

29Review of IOOF MultiMix Trusts September 2012

Page 30: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Capital Stable Trust

Sep 2012

30

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML *For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Capital Stable Trust 2.99 9.01 7.11

Composite benchmark* 2.56 8.88 6.96

Excess return 0.43 0.13 0.15

Diversified fixed interest42.17%

Australian shares 10.53%

Cash 42.22%

Property 5.08%

Allocations may not sum to 100% due to rounding

Review of IOOF MultiMix Trusts September 2012

Page 31: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Conservative Trust

Sep 2012

31

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML *For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Conservative Trust 3.32 9.84 6.42

Composite benchmark* 3.16 10.87 6.90

Excess return 0.16 -1.03 -0.48

Diversifiedfixed interest

35.84%

International shares 7.24%

Australian shares 10.38%

Cash 29.95%

Alternatives 7.31%

Property9.27%

Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 32: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Growth Trust

Sep 2012

32

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML *For further information on the composite benchmark, please refer to a copy of the IOOF MultiMix Trust Product Disclosure Statement available from our website www.ioof.com.au

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF MultiMix Growth Trust 5.74 10.32 2.10

Composite benchmark* 6.30 15.84 4.21

Excess return -0.56 -5.52 -2.11

Property 6.96%

International shares 29.71%

Australian shares 47.39%

Cash 2.87%Alternatives 8.08%

Diversified fixed Interest 4.99%

Allocations may not sum to 100% due to rounding

Review of IOOF MultiMix Trusts September 2012

Page 33: Review of  IOOF  MultiMix  Trusts

IOOF MultiMix Growth Trust

Attribution for September quarter:

• Positive performance from the international equities portfolio contributed to performance

• The bulk of the underperformance was a result of underperformance within the Australian shares portfolio

• Low levels of hedging contributed negatively to performance• The Alternatives - growth portfolio contributed negatively to performance as it

underperformed its equities benchmark

33Review of IOOF MultiMix Trusts September 2012

Page 34: Review of  IOOF  MultiMix  Trusts

IOOF Multi Series Balanced Trust

Performance is net of management costs and expenses. Past performance is not a reliable indication of future performance. Source: IIML *For further information on the composite benchmark, please refer to a copy of the IOOF Multi Series Balanced Trust Product Disclosure Statement available from our website www.ioof.com.au

Total return for periods ending 30 September 2012

3 Months%

1 Year%

3 Years% pa

IOOF Multi Series Balanced Trust 5.50 11.27 3.08

Composite benchmark* 5.77 13.25 4.04

Excess return -0.27 -1.98 -0.96

Sep 2012

34

Australian property 4.84%

International shares

30.02%

Cash 5.35%Australian

shares34.55%

Diversified fixed interest 25.23%

Review of IOOF MultiMix Trusts September 2012

Allocations may not sum to 100% due to rounding

Page 35: Review of  IOOF  MultiMix  Trusts

IOOF Multi Series Balanced Trust

Attribution for September quarter:

• Strong performance from Legg Mason/Brandywine in international fixed interest contributed to performance

• Strong performance from Credit Suisse Holt in international shares contributed to performance

• Strong performance from Colonial First State in Australian fixed interest contributed to performance

• Credit Suisse Holt’s Australian shares portfolio detracted from performance• Societe Generale’s emerging markets portfolio detracted from performance

35Review of IOOF MultiMix Trusts September 2012

Page 36: Review of  IOOF  MultiMix  Trusts

Strategic tilting update

Page 37: Review of  IOOF  MultiMix  Trusts

Currency/overseas assets

• Asset allocation committee decided to put more money offshore (AEQ to OEQ) for the Balanced Growth and Hi Growth Trusts (November 2010). All funds maintain a zero hedge target benchmark

• The AUD is trading at historically high levels

• We see the following four main catalysts for Australian dollar weakness:• Increased risk aversion from the ongoing debt crisis in Europe• RBA easing• Fiscal tightening• Decline in commodity prices prompted by the economic slowdown in China

• Valuation on overseas shares was attractive – especially in the US

• The natural hedge – if markets fall, A$ fall – GFC example

• Tilt has outperformed by 2.7% as at 30 September 2012

37Lonsec Investment Review – August 2012

Page 38: Review of  IOOF  MultiMix  Trusts

AUD/USD

Source: Datastream

38Lonsec Investment Review – August 2012

0.4

0.5

0.6

0.7

0.8

0.9

1

1.1

US

D/A

UD

Date

USD per AUD & PPP Value

PPP +/- 2 standard deviationPPP +/- 1 standard deviationPPP +/- 2 standard deviationPPP +/- 1 standard deviationPPP +/- 2 standard deviationPPP +/- 1 standard deviation Tilt entered

Page 39: Review of  IOOF  MultiMix  Trusts

Global fixed interest/cash tilt

39

• August 2010, 20% allocated to cash funded from global bonds within the IOOF MultiMix Diversified Fixed Interest Trust

Rationale

• US Gov’t bonds yields unsustainably low at around 1.5%

• Cash and term deposits currently have a high running yield with no duration risk

Status/Outcome

• Since implemented, global bonds outperformed cash

• Tilt has underperformed by approximately 7.0% as at 30 September 2012

Lonsec Investment Review – August 2012

Page 40: Review of  IOOF  MultiMix  Trusts

US 10 year government bond yield

Source: Bloomberg

Lonsec Investment Review – August 2012 40

Jan

-07

Ap

r-0

7

Jul-

07

Oct

-07

Jan

-08

Ap

r-0

8

Jul-

08

Oct

-08

Jan

-09

Ap

r-0

9

Jul-

09

Oct

-09

Jan

-10

Ap

r-1

0

Jul-

10

Oct

-10

Jan

-11

Ap

r-1

1

Jul-

11

Oct

-11

Jan

-12

Ap

r-1

2

Jul-

12

0

1

2

3

4

5

6

US 10 year Govt Bond Yield

Yie

ld (

%)

Tilt entered