Welcome to the Desktop Broker mFund Asset Class series

Are you looking for an easier way to diversify your clients' portfolios?

Let's talk about Alternatives

Let's talk about Alternatives

We've created this mFund Asset Class series to explore five different mFund asset classes for your clients: alternatives, fixed income, property, Australian equities and international equities.

This month we're kicking off with Alternatives, an asset class which seeks to exploit market inefficiencies by focusing on non-traditional assets.

Find out more below.

Have you considered investing in Alternatives?

Have you considered investing in Alternatives?

Some examples include emerging markets, infrastructure, listed private equity, foreign currency and natural resource equities.

What are the benefits?

  • Alternatives typically offer a return and risk profile different to traditional shares and bonds for your clients' portfolios.
  • They can be a powerful tool to help achieve broader diversification, lower volatility and boost returns.

Now may be the time to consider investing in Alternatives for your clients. 

The Morningstar Multi Asset Real Return Fund

The Morningstar Multi Asset Real Return Fund
  • A flexible portfolio that adapts to all market conditions.
  • 100% actively managed.
  • An alternative to traditional equities and fixed income holdings.
  • Performance objective: CPI + 4.0% p.a. over rolling 7 year periods
  • Suggested investment timeframe: 7+ years
  • Morningstar invests where they think the best opportunities are. Current examples include emerging market shares, Japanese equities and selected UK & European sectors 
  • Accessible via the mFund service (mFund code: IBB13).

Five reasons you may want to invest for your clients

  1. A ‘real return’ objective: the fund aims to deliver a return of CPI + 4% over 7 year periods, irrespective of what’s happening in the market.
  2. Focus on capital preservation in times of market stress whilst outpacing inflation. 
  3. Investment flexibility: not constrained by growth or defensive ranges, and able to actively position for changing market conditions. 
  4. Multi asset allocation across an extensive number of asset classes, geographies and sectors.
  5. Cost competitive at 0.70% p.a.

Designed for investors who are:

Designed for investors who are:
  • Seeking a defined rate of return above inflation.
  • Willing to compound your investment for at least 7 years.
  • Looking to grow their wealth to meet long term goals. 
  • Wanting the flexibility to take advantage of opportunities when they arise.
  • Wanting to access a professionally managed portfolio.
  • Looking for diversified investments across growth and defensive assets from around the world.

Why Morningstar

Why Morningstar
  • Leading provider in asset allocation, portfolio construction and research with over 35 years of experience.
  • Global perspective and local market expertise.
  • Valuation-driven and long term view.
  • Focused on future earnings rather than prospective price changes.
  • Truly diversified portfolios.

How to invest for your clients

The Morningstar Multi Asset Real Return Fund is available on our mFund platform. Simply place an order online through the order pad:

  • Login to your account and go to the order pad. The mFund code is IBB13.
  • Read the fund profile and the PDS.
  • When you're ready to invest, choose the ‘Managed Funds’ option on the Order Pad and place your order online. 
  • The new Fund units are transferred and can be seen in your clients' portfolios

No need to provide any additional paperwork from your clients, the Fund will settle through their existing nominated bank account.

Find out more & read the fineprint

The pre-fee investment performance is expressed before management fees, costs and taxes.

The post-fee return is after management fees, costs and before taxes. The management fee is inclusive of GST (after taking into account Reduced Input Tax Credits) and can be negotiated for direct investors.

The Fund also has exposure to underlying investment managers which charge performance fees and these are an additional cost to you and impact the return.

Inception date for the Strategy is 1/02/2017. The inception return is calculated from the first month end after the inception date.

You can access the latest performance factsheet for Q2 here.

You can find out more information on the Morningstar Multi Asset Real Return Fund here.

This content is issued by Morningstar Investment Management Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Morningstar’).

Morningstar is the Responsible Entity and issuer of interests in the Morningstar investment funds referred to in this report. © Copyright of this content is owned by Morningstar and any related bodies corporate that are involved in the content’s creation. As such the content, or any part of it, should not be copied, reproduced, scanned or embodied in any other document or distributed to another party without the prior written consent of Morningstar. The information provided is for general use only. In compiling this content, Morningstar has relied on information and data supplied by third parties including information providers (such as Standard and Poor’s, MSCI, Barclays, FTSE). Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Morningstar nor its third parties accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Past performance is not a reliable indicator of future performance. Morningstar does not guarantee the performance of any investment or the return of capital. Morningstar warns that (a) Morningstar has not considered any individual person’s objectives, financial situation or particular needs, and (b) individuals should seek advice and consider whether the advice is appropriate in light of their goals, objectives and current situation. Refer to our Financial Services Guide (FSG) for more information at morningstarinvestments.com.au/fsg.  Before making any decision about whether to invest in a financial product, individuals should obtain and consider the disclosure document. For a copy of the relevant disclosure document, please contact our Adviser Distribution Team on 02 9276 4550.

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