iShares Core Model Portfolios
iShares Core ETFs are five low-cost, high quality funds designed to provide broad market exposure at less than 1/6th of the average cost of Australian managed funds1. They provide the essential building blocks for exposure across markets and asset classes: Australian equities, international equities (hedged and unhedged), Australian fixed income and international fixed income (hedged).
iShares Core Model Portfolios are made up of funds from the iShares Core series, as well as an allocation to cash and provide a simple, low-cost way to build robust portfolios that can be customised to meet your investment needs.
The model portfolios consist of five different portfolios that demonstrate a range of investment possibilities for varying risk preferences, and are based on average portfolio allocations across asset classes by Australian managed funds in these categories.
*For illustrative purposes only. This is not a recommendation to invest in any particular financial product. No analysis of their suitability was conducted and no statement of opinion in relation to their suitability is provided.
- Low cost - with portfolio management costs ranging from 0.16% p.a to 0.17% p.a. iShares Core Model Portfolios enable investors to keep more of what they earn and save fee budget for selective alpha opportunities
- High quality - they put high quality funds at the heart of a portfolio, leveraging the portfolio management and asset allocation expertise of BlackRock and its industry-leading risk management platform.
- Easy to rebalance - iShares Core Model Portfolios are updated semi-annually to ensure that the portfolios are able to be adapted to changing market conditions and consistently reflect the original asset allocation strategy and investment objectives.
iShares International Equity Model Portfolios
With the Australian share market representing less than 3% of global markets, more than 97% of equity investment opportunities are outside Australia2. Many investors are embracing the use of international ETFs to diversify their equity portfolios and gain exposure to global opportunities.
iShares has constructed five international equity model portfolios with the aim of:
- Replicating the performance of common international equity benchmarks with iShares ETFs
- Using iShares ETFs in an active way by positioning the portfolio towards specific countries or regions
These five model portfolios cover developed and emerging markets with tactical tilts to specific regions and countries:
- Portfolio 1 – Replicating MSCI World Index
- Portfolio 2 – Replicating MSCI All Country World Index (ACWI)
- Portfolio 3 – MSCI ACWI with a tilt to Emerging Markets
- Portfolio 4 – MSCI ACWI with tilt to Emerging Markets & China
- Portfolio 5 – MSCI ACWI with tilt to Emerging Markets & Asia
1.Source: Morningstar, Bloomberg, as of 31 March 2016. Comparison is between the average management fee (or indirect cost ratio) of the iShares Core ETF range (0.19%) and the average indirect cost ratio of the Morningstar Australian Investment Trust universe (1.42% excluding outliers to provide a more conservative measure). The Morningstar Australian Investment Trust universe is comprised of over 2,800 open-ended funds, including Unit Trusts, Superannuation Funds, Allocated Pensions and Term Allocated Pensions. Management fee / indirect cost ratio is quoted as a percentage of annual average net assets.
2. Source: MSCI, 30 June 2015