Evans & Partners are the latest manager to be added to the netwealth Managed Account service, and offer access to two new Specialist Fixed Interest, and two concentrated Australian Equity models.
Evans & Partners is an Australian owned investment house formed in 2007, providing corporate banking, asset management, research and execution capabilities across Australian equities, fixed interest and global equities. They currently have a team of over 100 staff across Melbourne and Sydney.
The four new models are based on the strategy and research provided by the Evans & Partners research team, and are detailed below:
1. The Evans & Partners Australian Equity Income Model Portfolio
The investment objective is to achieve, over the medium to long term, an investment return, including capital appreciation and dividends, in excess of the S&P/ASX 200 Accumulation Index while maintaining a higher level of income distribution than the benchmark.
The model has a medium term focus and endeavours to generate superior total returns to the benchmark. A key goal is to generate a tax-effective income stream. To achieve this, the Model is constructed and managed to provide a higher dividend yield, higher dividend per share growth and a higher franking benefit than the market. Evans and Partners will actively seek tax-effective and yield enhancing opportunities such as participation in off market buy-backs.
2. The Evans & Partners Australian Equity Growth Model Portfolio
The investment objective is to provide a total return that exceeds the benchmark over the medium to longer term. The portfolio is not index aware but does seek to provide investors with a balanced exposure across industries and regions while minimising thematic bias.
The model aims to provide investors with a relatively balanced exposure to the Australian market. It has a medium term focus (3 to 5 years) and a goal to generate superior returns to that of its benchmark – the ASX200 Accumulation Index. Portfolio management is relatively active and takes account of shifting relative valuations at the sector/stock level as well as evolving industry and economic themes. The intention is to remain well-exposed to the “earnings leaders” in the market, a universe of stocks that inevitably changes over time.
3. The Evans & Partners Australian Defensive Plus Model Portfolio
The investment objective is to outperform the benchmark (50% Bloomberg Australian Bank Bill Index and 50% Bloomberg Australian Composite Bond Index) after fees over rolling three year periods from a portfolio of Australian Government Bonds and investment grade credit.
The model aims to provide investors with regular income and capital protection from a portfolio of ASX listed Australian Government Bonds and high grade listed corporate bonds and hybrids. The portfolio will typically have around 50% in Government Bonds providing capital stability and 50% in high grade corporate bonds to conservatively increase the portfolio’s yield. Non-Government securities must be investment grade rated and are selected after credit risk and security structure reviews. Relative analysis is a key component of the investment process.
4. The Evans & Partners Australian Investment Grade Credit
The investment objective is to outperform the benchmark (50% Bloomberg Australian Bank Bills Index and Bloomberg AustBond Credit 0 + Yr Index) after fees over rolling three year periods from a portfolio of investment grade Australian listed Bonds and hybrids.
The model aims to provide investors with regular income and capital protection from a portfolio of high grade listed corporate bonds and hybrids. The portfolio will typically hold 5 – 20 securities issued by major Australian companies, diversified by issuer, industry and maturity profile. Liquidity is also an important factor. Up to 20% can be held in cash as a defensive mechanism. All securities must have a minimum investment grade rating and are selected after credit and security structure reviews. The portfolio will be actively managed based on any changes in underlying company credit profiles, margin optimisation and relative trading opportunities.
In addition to the existing netwealth Managed Account investment models, these new models are available as an integrated option within the platform. So you, your clients, and investors have access to these models in addition to the broad range of existing domestic & international equities, managed funds, cash and Term Deposits.