Growth Model - Investment Policy Change

21st June 2018

For client accounts that have selected the “Growth” Australian Equity option we have made two enhancements to the investment policy.

The first change is removing the segregation of the ASX 50 and ASX 51-100 groups. Previously at least 80% of the portfolio was invested in the S&P ASX 50 and a maximum of 20% in the ASX 51-100 to ensure the portfolio provided a genuine Large Capitalisation Australian Equity exposure for clients. The change means that going forward the portfolio will be invested across the entire ASX 100. The removal of this restriction will provide the Portfolio Managers with greater flexibility to target growth opportunities across the ASX100.

In order to maintain conviction over security selection the minimum weight for ASX 51-100 companies has increased from 2.75% to 3.5% as they are now treated the same as companies in the ASX 50.

The second change to the investment policy is reducing the minimum number of industry groups represented from 8 to 6. We have made this change to improve the capital growth potential of the portfolio by increasing the ability to position the portfolio in higher growth areas with a greater degree of concentration, while still maintaining sufficient diversification.

If you have any queries, please contact Elston

Warnings and disclosures

This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.

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