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Zenith Investment Partners

Model Portfolio Construction Document

February 2010

....................................................... 3 Model Portfolio Reports ............................................................................................................................................................................. 3.......................TABLE OF CONTENTS 1.... 7 Investment Timeframe ........................................................ 11 Fund Selection .......................................................... 9 Asset Classes within the Strategic Asset Allocation ......................................2...................................................4.............. 11 Portfolio Characteristics........................... 8 Strategic Asset Allocation Rebalancing .......... 11 Portfolio Performance Calculation ............................ 12 Median Managers ......5............................ 4........1............................................. 4......................................... Zenith’s Strategic Asset Allocation .......................................... 1................... 4................................... The Model Portfolio Offering ..... 4............. 6 Setting the Strategic Asset Allocation ...................................................................... 6 4........................ 9.. 3 1................ 12 2 ......................................................................... Tactical Asset Allocation ................ 4 2....... 6......................... Accessing the Model Portfolios ......... 8............... 5 Determining the Risk / Return Profiles .............. 5 Strategic Asset Allocation ................................ 9 5.3..................................................1. 7..............2........................................................................................ Objectives of the Portfolios......................... 4.....................

Accessing the Model Portfolios The model portfolios are accessed via a unique log-in to the www. which Zenith can easily cater for. or a combination of both Tailored Platform and Fully Customised advisers can then click on the “Portfolios” tab. clients will be provided with a detailed explanation of the reasons for the change. Fully Customised Portfolios. The screenshot below shows the display after a portfolio has been selected from the drop-down list and the “Display Portfolio” button has been pressed. when a change is required. the fund names and weightings are displayed. Tailored Platform Portfolios are available across all of the major administration platforms. However. We also closely analyse how each fund blends with the other funds in the portfolio to ensure an optimal exposure across each asset class and individual fund. 1. which provides a drop down list of all of the advisers model portfolios. Colonial First State FirstChoice and Asgard eWrap/Mastertrust. The Model Portfolio Offering Zenith offers its clients three options in regards to our model portfolio service: Tailored Platform Portfolios. The portfolios are constantly monitored by Zenith. Once logged in. with detailed performance and attribution analysis conducted on a monthly basis. Fully Customised Portfolios: Whilst the Tailored Platform Portfolios are designed to cater for the requirements of most adviser groups. The Fully Customised Portfolios are subjected to exactly the same rigorous ongoing monitoring process that is applied to the Tailored Platform Portfolios. Combination of both Tailored Platform and Fully Customised Portfolios: Some clients may choose to purchase a combination of both Tailored Platform Portfolios and Fully Customised Portfolios. or multiple platforms to suit their requirements. A client’s unique requirements may include things like a different growth/defensive split to the standard Zenith offering. Macquarie Wrap. 3 . Once a particular portfolio is selected. To minimise the administrative burden on its clients.1. including BT Wrap. Each of the options are explained below: Tailored Platform Portfolios: Tailored Platform Portfolios are a model portfolio solution that provide five portfolios (ranging from Conservative to High Growth) per administration platform. For this reason. or perhaps the exclusion of “Alternative” products in the portfolios. Zenith also offers Fully Customised Portfolios. Zenith acknowledges that some groups may have specialised requirements that are outside the scope of Tailored Platform Portfolios. where clients can incorporate their own unique requirements into the portfolios. Clients can choose to purchase portfolios for a single platform.zenithpartners. as well as links to the four reports available for the portfolio.1. Zenith undertakes extensive ongoing due diligence for every fund in every portfolio. Zenith endeavours to keep the turnover of funds in the portfolios as low as possible. Performance issues with any of the underlying funds are identified early and discussed with the fund manager if website.

and an assessment of the fund’s Investment Process. including Fund Rating. accessed via links on the webpage. A Product Profile report provides key details for a fund. Model Portfolio Reports There are four reports available for the model portfolios. Product Assessment Reports For All Funds In Selected Portfolio: this report consolidates the Product Assessment reports for all funds in the selected portfolio into a single document. Product Profile reports are usually a single page each.2. Risks of the Fund and Applications of the website. 4 . The four available reports are explained below: Report For Selected Portfolio: this report provides all the details for the selected portfolio including: portfolio holdings and weightings. Product Profile Reports For All Funds In Selected Portfolio: this report consolidates the Product Profile reports for all funds in the selected portfolio into a single document. Benchmark. A Product Assessment report provides the research findings of the Zenith investment team for the particular fund and includes the Fund Rating. Fees. Samples of these reports are available via the home page of the www.1. Product Assessment reports for each fund are generally around 5-7 pages in length. Investment risk & consistency statistics for the portfolio compared to the median manager. Investment Team. commentary on the funds used in the portfolio and why certain funds have been blended together. Manager Background. and return. Report For All Portfolios: this report consolidates the “Report For Selected Portfolio” (mentioned above) for all available portfolios into a single document. Investor Profile and basic Performance Statistics.

this is not necessarily a reliable guide to future performance and volatility. For this reason. Zenith’s portfolio objectives are relative in nature. Zenith utilises a series of “median managers” that match the risk/return profile of each of the Zenith portfolios. In order to determine the performance of competitor products. the performance statistics of the relevant median manager are shown alongside the performance of the portfolio in the model portfolio report. please refer to Section 9 of this document. Objectives of the Portfolios Setting total return objectives for portfolios is a difficult task. as the return is dependent on the performance of each of the underlying asset classes and fund returns. This approach ensures that there is an appropriate portfolio available for all clients. The five model portfolios offered by Zenith are as follows: Conservative Moderate Balanced Growth High Growth 5 . For further detail on median manager calculations. with the aim to outperform competitor products of a similar risk/return profile over the medium to longer term. 3.2. The main consideration in determining the split between growth and defensive assets across the portfolio suite was to ensure that there was a meaningful and consistent step-up in risk and return. Whilst it is useful to assess the historical risk and return characteristics of each of the asset classes. regardless of the risk appetite. To enable comparison. Determining the Risk / Return Profiles Zenith offers five risk / return profiles across its portfolio suite.

5% 7.1.0% 5.0% 80.0% Fixed Interest Cash Total Defensive Assets 70.0% 6 .0% 13.e.0% Balanced 21.0% 8.5% 8.5% 6.5% 60.0% 60.0% 6.0% 20. Zenith’s typical Strategic Asset Allocation across each of the five Risk/Return profiles is shown below: Conservative Australian Shares International Shares Australian Listed Property International Listed Property Alternatives Total Growth Assets 5.5% 5.0% 5.0% 4.Efficient Frontier 11% High Growth 10% Growth 9% Return (% pa) Balanced 8% Moderate 7% Conservative 6% 5% 2% 4% 6% 8% Volatility (% pa) 10% 12% 14% 4.0% 20. These numbers have been calculated based on a detailed analysis of the historical risk and return characteristics of each asset class index.5% 21. 4.5% 4.0% 4.5% 39.0% 20.0% 80. Zenith Model Portfolios .0% Growth 30.0% 6.0% 7. 10 years plus) for each of the portfolios.0% 40.0% 40.5% 5.0% 0.0% High Growth 39.0% 35.5% 6.0% Moderate 13.0% 52.0% 30.The graph below displays the long-term risk and return statistics that Zenith believes may be achievable over the long-term (i. as well as a consideration of fund manager excess returns relative to the asset class indices.0% 5.0% 100. Strategic Asset Allocation Zenith’s Strategic Asset Allocation Zenith reviews the Strategic Asset Allocation of all portfolios on an annual basis to ensure they remain consistent with the portfolio’s objectives and industry best practice.0% 6.0% 10.

18 -0.31 0.06 -0.00 0.77 -0.64 0.80 0.09 0.32 0.72 0.85 0.17 1.75 -0.86 0.06 -0.92 0. Zenith uses a proprietary Diversification Model to provide some guidance in terms of the allocation between asset classes.57 0.21 0.06 0.18 0.92 0.60 0.08 -0.00 0.00 0.09 -0.16 0.00 -0.02 -0.36 -0.89 -0.34 0.00 0.18 -0.65 0. the addition of Managed Futures would have actually decreased the overall Volatility of the combined portfolio.45 -0.73 -0.28 0.43 1.76 0.60 0.43 -0.06 -0.00 0. The process begins with an analysis of the interaction of each asset class with one another using Correlation Matrices over several time periods.31 0.34 0.87 0.14 -0.35 0.75 -0. the graph below shows that up to a weighting of around 40%.75 1.45 0.85 1.07 -0.73 0.08 -0.04 0.36 -0.92 1.57 0.54 -0.64 0.91 0.12 -0.12 0.62 0. Managed Futures Australian Shares Australian Cash 7 .72 0.19 0.12 -0.21 -0.50 -0.06 0.28 -0. which shows how adding Managed Futures to a Moderate Portfolio would impact on portfolio volatility.76 0.38 -0.36 0.51 1.38 0.26 -0.17 0.55 0.73 0.00 -0.16 -0.76 0.24 0.36 1.00 -0.76 0.43 0.36 0. This is a result of the low correlation that Managed Futures has with traditional asset classes.45 -0.46 0.54 -0.16 -0.39 -0.19 -0.37 0.14 1.34 0.72 -0. An example of a typical Correlation Matrix used by Zenith is shown below: International Shares (unhedged) 5 Year Correlation Global Infrastructure Securities 0.68 1.16 0.39 -0.44 0.06 0.00 -0.86 -0.89 0.16 0.77 -0. Asset class pairs that have a sustained low correlation over multiple time periods can potentially indicate a diversification opportunity for portfolios.33 0.01 -0.01 0.87 -0.91 -0.72 0.00 0.12 -0.35 -0.16 -0.76 0.76 0.26 -0.62 1.12 -0.32 -0.03 0.10 0. An extract of the model is provided as an example below.10 -0.77 0.34 -0.37 0.18 -0.91 0.73 0.77 0.04 -0.33 0.91 0.45 -0.44 0.73 0.43 0.68 0.05 International Shares (hedged) Australian Small Companies International Fixed Interest Global Resources Securities Australian Listed Property Australian Fixed Interest Global Listed Property Hedge Fund-of-Funds Australian Shares Australian Small Companies International Shares (unhedged) International Shares (hedged) Australian Listed Property Global Listed Property Australian Fixed Interest International Fixed Interest Australian Cash Hedge Fund-of-Funds Global Resources Securities Global Infrastructure Securities Managed Futures 1. Setting the Strategic Asset Allocation The decision making process in determining the underlying Strategic Asset Allocation of the portfolios incorporates several quantitative and qualitative inputs.75 0.05 1. Despite the fact that Managed Futures have a higher stand alone Volatility than the Moderate Portfolio.80 0.00 0.24 0.73 0.55 -0.00 0.48 -0.48 0.65 0.73 0.46 0.03 -0.50 0.00 Further work is then done to assess the optimal weight that a particular asset class could be used in a portfolio.51 0.02 0.36 0.07 0.12 -0.73 1.

if an investor had invested in a typical Growth Portfolio for only a 1 year period (at any time over the past 20 years). For example. Zenith analyses models such as this for all risk profiles (i. Growth.e. expected negative returns and predictability of return outcomes.3. 4. where we leverage off Zenith’s extensive inhouse knowledge of the risk and return inherent in all mainstream asset classes. An example of a typical Growth Portfolio is show below. with 20 years of data used in the underlying model.Diversification Model Volatility Impact of Adding Managed Futures to a Moderate Portfolio 8% 7% Annualised Volatility 6% 5% 4% 3% 2% 1% 0% 0% 5% Allocation to New Fund (%) Zenith Composite Moderate Portfolio Managed Futures Combined Portfolio While the Diversification Model is extremely useful in highlighting how the addition of an asset class will impact on portfolio volatility. where the difference between the maximum return and minimum return was much tighter. Balanced etc). Therefore. their return outcome could have been anywhere between +33% and -26%. High Growth. there is also a significant qualitative component to the Strategic Asset Allocation process. clearly a 40% allocation to Managed Futures would be an excessive exposure for most investors. The graph clearly shows that the variability of returns is much higher over shorter-term periods. Investment Timeframe The investment timeframe for each portfolio is determined after careful consideration of expected volatility. 100% 10% 35% 40% 45% 50% 55% 80% 85% 90% 95% 15% 20% 25% 30% 60% 65% 70% 75% 8 . Return funnel graphs use long-term index data and model the variability of returns over different time periods. Risk of Negative Return Conservative Portfolio Moderate Portfolio Balanced Portfolio Growth Portfolio High Growth Portfolio 1 in 36 Years 1 in 10 Years 1 in 6 Years 1 in 5 Years 1 in 5 Years Another useful input in setting the Investment Timeframe is the analysis of return funnel graphs. Far better predictability of returns was achieved by investing for periods of 5 years or longer. Based on the historical volatility of the model portfolios. Zenith has calculated the following Risk of Negative Return statistics for each of the five model portfolio types.

however. Regular rebalancing ensures that the portfolio does not stray too far from the desired asset allocation.Example Growth Portfolio 40% 30% 20% Return (% pa. Small companies funds are also used where applicable. High quality small companies funds are an attractive addition to portfolios as they can potentially enhance long-term returns. particularly for Balanced. which have historically provided solid capital growth and reasonable levels of dividend income. Strategic Asset Allocation Rebalancing As a minimum.1.4. and avoids over exposure to any particular asset class. Australian Shares Australian shares funds form a core component of the Zenith model portfolios.) 10% 0% -10% -20% -30% 1 Year 2 Years Maximum Return 3 Years 5 Years 7 Years Average Return 10 Yrs Minimum Return Zenith utilises the above “Risk of Negative Return” and “Return Funnel” modelling in determining its recommended investment time frames for each of the five model portfolio types that we offer.5. The majority of large cap funds historically used in the Zenith portfolios have been long-only. where the allocation to growth assets is higher. The primary exposure to Australian shares is achieved using funds that focus on large capitalisation stocks. 4. 4. Growth and High Growth portfolios. 9 . but preferably more frequently. Asset Classes within the Strategic Asset Allocation The following includes a brief discussion on how each of the major asset classes are used in model portfolios. Zenith recommends that advisers rebalance their portfolios on an annual basis. The recommended investment time frames across each of the Zenith Model Portfolios are shown in the table below: Investment Timeframe Conservative Portfolio Moderate Portfolio Balanced Portfolio Growth Portfolio High Growth Portfolio 2 – 3 Years 3 – 4 Years 4 – 5 Years 5 – 7 Years 7+ Years 4.5. long/short funds will also be used from time to time.

Infrastructure securities tend to offer a higher yield and lower volatility than the broader international shares sector.5. Zenith tightly manages the fixed interest component of the portfolios to ensure that there is adequate diversification. corporate fixed interest securities). Whilst international shares offer a slightly lower dividend yield than Australian shares. Zenith released a paper in 2009 that provided our findings that a 50/50 allocation has historically achieved lower volatility than taking on a 100% unhedged or 100% hedged exposure. For this reason.4. Zenith includes two other sub-asset classes in its overall exposure to international shares. and therefore an exposure to infrastructure securities in model portfolios can be used to not only enhance diversification. In regards to the currency exposure of international shares funds.4. Global listed property offers higher growth potential with lower yields than what is generally available from Australian listed property funds.2. while an exposure to credit can be used to enhance the model portfolio’s income profile. 4. 10 . as we believe that high quality Alternatives funds can significantly enhance portfolio diversification.5. Zenith tends to have an equal allocation to Australian and international shares in its model portfolios. lower volatility and potentially enhance long-term returns. Whilst Australian property securities funds have long been available. Global infrastructure securities includes those listed companies that specialise in infrastructure projects. and global infrastructure securities. 4. In order to ensure that there are not too many funds used in portfolios.5. Zenith has tended to use a combination of long-only and long/short funds in its international shares portfolios. and can provide strong diversification to a portfolio when used appropriately. Zenith tends to mainly introduce global resources securities funds and global infrastructure securities funds in Growth and High Growth portfolios.3. It is critical to ensure that the portfolios are not overly exposed to any single factor risk.5. the relatively recent emergence of global listed property funds in the Australian market has provided further opportunity for diversification. Property Property exposure is achieved using listed property securities funds. international shares funds also form a core component of the Zenith model portfolios. international government bonds. specifically: Australian government bonds. but also to increase the overall income generation of the portfolio. Zenith typically allocates 50% of the property exposure of a portfolio to Australian listed property and 50% to global listed property. Government bonds typically provide stability and downside protection.e. International Shares As with Australian shares. Zenith aims to achieve an approximate 50/50 allocation between hedged and unhedged funds. Fixed Interest Fixed interest is used to provide the defensive (capital preservation) exposure of the model portfolios. 4.5. Property provides strong diversification benefits and can also enhance the model portfolio’s income profile. Global resources securities essentially encompasses resources & mining stocks listed on global stock exchanges. specifically: global resources securities. and credit (i. Zenith aims to achieve diversification across three distinct fixed interest segments. Zenith believes the total return available from high quality international shares funds should be comparable to Australian shares funds over the long term. Alternatives Zenith is a strong advocate of the use of Alternatives funds in model portfolios.

0 Total Return (% pa) 5.5. and rebalancing on a regular basis. we provide estimates in regards to the income. which can be a time consuming process that would mute any potential benefit of switching quickly between asset classes.7.10. as we believe the risks associated with making an incorrect Tactical Asset Allocation call far outweigh the potential benefits of making a correct call.5 Volatility (% pa) 3.7.5 9.5 8. It is critical that appropriate weightings are assigned to Alternatives products in model portfolios.0 .4. Hedge Fund-of-Funds. the characteristics are expected to move outside of these ranges. in general.5 .5 6.8 .4.5 9. which is a significant input into the portfolio weighting process. due to Australian tax laws.1.0 4. total return and volatility characteristics for each portfolio. Fund Selection Fund selection for the portfolios leverages off Zenith’s intensive fund due diligence process and. clients will meet their long-term investment objectives without the need for tactical tilts to the portfolio along the way.5 7.10.0 4.5 . and has not taken into account the realised capital gains. On occasion. 5.8 4. an Approved rated product may be used if there is no suitable higher rated product available on a particular administration platform. including Managed Futures. which will be variable over time. In addition.5 .5 6.0 .0 . In most cases.5 4. Tactical Asset Allocation Zenith does not undertake Tactical Asset Allocation (TAA).7.4.5. 1 Note: It is important to realise that the income estimate is based on the expected yield of the underlying asset classes.5 .8.9.5 .5 . only those funds that are rated Highly Recommended or Recommended are considered for the portfolios.0 3.13.7 . Multi-Strategy and Global Macro. We strongly believe that by setting a sound long-term Strategic Asset Allocation. Zenith spends a lot of time analysing how each of the different types of Alternatives products correlates with traditional asset classes.7 3.5 1.5 . we believe that the logistics of implementing a tactical asset allocation decision in a timely manner are impractical and costly for most financial advisory groups.5.5 . Note that the ranges provided in the table below are to be used as a guide only and are long term estimates (five years plus).5 -5.5 6.There are a wide range of Alternatives products available.5 .5 Growth (% pa) 0. Over shorter term periods. effectively increasing the income paid out of the fund. 11 . Realised capital gains transfer some of the return from the growth component to the income component.5 . growth. Portfolio Characteristics 1 Portfolio Type Conservative Portfolio Moderate Portfolio Balanced Portfolio Growth Portfolio High Growth Portfolio Income (% pa) 12. sometimes significantly. implementing a TAA decision would require a Statement of Advice to be issued to each of the adviser’s underlying clients.0 . The one exception is the Alternatives asset class which.0 .0 .0 4. as over exposure can lead to a risk profile that is beyond what was intended. Portfolio Characteristics To assist our clients in determining the suitability of each portfolio.11. has traditionally paid out the majority of its return as realised capital gain and therefore we have included the expected return from Alternatives in the income column.0 7.0 . 6.

For example. and Longest Losing Streak.A primary consideration when selecting a fund for the portfolio is how the fund will blend with other funds in the portfolio. if a particular Highly Recommended fund does not offer the required exposure for the portfolio (eg. Highly Recommended funds will be used where possible. in those cases. the model portfolio returns are net of both fees. it is assumed that the portfolios are reweighted to their Strategic Asset Allocation on a monthly basis. All funds that carry a current Zenith rating are subject to ongoing due diligence. where they are closely monitored in regards to a range factors. this is the standard industry practice for model portfolio return calculations. or changes at an organisational level. 8. In order to determine the performance of competitor products. Zenith also calculates a range of risk and consistency statistics which are displayed in the model portfolio reports. For the purposes of performance calculations. In addition to the return of the portfolio. 12 . deterioration of investment performance. The median manager used for performance comparison with the Zenith Balanced Portfolio has an allocation of 60% growth assets and 40% defensive assets (“60/40 Median”). The exception to this is for platforms such as Colonial First State’s FirstChoice platforms. changes to investment process. when building the Australian shares component of the portfolio. The calculation of the median manager is best illustrated using an example. however. and some will have a slightly lower risk profile than 60/40. and displayed for comparative purposes in the Zenith Balanced Portfolio report. While we realise that monthly rebalancing is not practically possible for most adviser groups. A Highly Recommended growth-style fund is available. Performance statistics for the 60/40 Median are then drawn from the median performance statistics of this universe. it is important to ensure that the portfolio is not overly exposed to value or growth style funds. Median Managers As discussed in the Objectives of the Portfolio section (Section 2) of this report. where the manager fee and platform fee are not separated and therefore. the median allocation of growth and defensive assets across this universe is exactly 60% growth assets and 40% defensive assets. including: any changes in investment personnel. which match the risk/return profile of each of the Zenith portfolios. then Zenith is happy to use Recommended rated funds. Zenith aims to outperform competitor products of a similar risk/return profile over the medium to longer term. The entire 42 fund universe used for the 60/40 Median is shown on the following page. but before any wrap platform fees are deducted. There are currently 42 funds in the universe used for calculating the 60/40 Median. 9. % of Negative Months. These statistics include: Standard Deviation. Zenith has created a series of “median managers”. drawn from the universe of diversified funds. Some of these funds will have a slightly higher risk profile than 60/40. Portfolio Performance Calculation Performance of the Zenith model portfolios is calculated based on the weighted net returns of the underlying funds in the portfolio. however. The figures shown in the Zenith model portfolio reports display the performance of the portfolio after the fees of the underlying funds have been deducted. Sharpe Ratio. % of Positive Months. but the portfolio requires a value-style fund).

0% 30.0% 50.5% 66.Class D CFS FC WS Inv .0% 40.0% 70.0% 60.0% 50.0% 40.0% 70.0% 40.5% 34.WS Multi-Mana.0% 30.0% 30.0% 40.0% 32.0% 37.0% 65.5% 68.0% 30.0% 50.3% 31.8% 69.0% 70.0% 65.0% 50.0% 50.0% 30.0% 50.0% 60.0% 40.Funds in 60/40 Median Universe Barclays Managed Inv Funds – Diversified Stable Fund BT Wholesale Conservative Outlook Fund BT WS Partner Funds .0% 45.0% 55.0% 30.0% 40.0% 35.0% 30.0% 60.0% 13 .0% 70.0% 70.0% 30.0% 70.0% 70.0% 70.0% 70.0% 30.0% 50.ING Tax Eff Income ING Wholesale Managed Growth Trust MLC Wholesale Horizon 4 Balanced Portfolio SSgA Passive Balanced Trust Vanguard Growth Index Fund Legg Mason Diversified Trust .0% 40.0% 42. Conservative Fund UBS Defensive Investment Trust Aviva Investors Income Plus Growth Trust BT Income Plus Fund Officium Cautious Fund Credit Suisse Sustainable Income Fund Mercer Income Plus Fund Perpetual Wholesale Diversified Growth Fnd Advance Moderate Multi-Blend Fund WS All Star Income Fund Colonial First State Wholesale Balanced MLC Inv Trust Conservative Growth (Multi-Manager) Fund Russell Diversified 50 Fund .0% 57.0% 62.0% 67.0% 30.0% 40.0% 50.0% 70.0% 50.0% 50.0% 70.0% 30.Class C Zurich Blended Series Managed Growth Median Growth Assets 33.0% 50.Class A Vanguard Balanced Index Fund Zurich Blended Series Balanced BT Wholesale Tax Effective Income Fund Officium Conservative Fund BlackRock Global Allocation Fund (Aust) .5% 40.0% 70.0% 50.0% 50.0% 30.0% 35.0% 30.0% 45.0% 60.0% 50.5% 31.0% 34.0% 66.0% 60.5% 60.0% 55.0% 70.Wholesale Moderate ING Wholesale Balanced Trust Select Defensive Portfolio Officium Balanced Fund BT Wholesale Balanced Returns Fund Perennial Balanced Wholesale Trust Macquarie Master Balanced Fund Schroder Balanced Fund Wholesale Class Perennial Partners Trust Advance Balanced Multi-Blend Fund WS BlackRock Wholesale Balanced Fund Colonial First State Wholesale Diversified Credit Suisse Asset Management Capital Growth Fund Goldman Sachs JB Were Diversified Growth WS Fund ING OA Inv Pfolio .0% 60.Class A Russell Balanced Fund .0% Defensive Assets 67.0% 70.0% 50.0% 50.0% 60.0% 60.0% 30.

Zenith usually receives a fee for assessing the fund manager and product(s) described in this document against accepted criteria considered comprehensive and objective. Opinions expressed may change without DISCLAIMER: This report is prepared exclusively for clients of Zenith Investment Partners (Zenith).Author: Glen Franklin. Zenith accepts no liability. The performance of the investment in this report is not a representation as to future performance or likely return. whether direct or indirect arising from the use of information contained in this report. No part of this report is to be construed as a solicitation to buy or sell any investment. The information contained in the report is believed to be but its completeness and accuracy is not guaranteed. 14 . The material contained in this report is subject to copyright and may not be reproduced without the consent of the copyright owner. Each client should assess either personally or with the assistance of a licensed financial adviser whether the Zenith recommendation or advice is appropriate to their situation before making an investment decision. The report contains recommendations and advice of a general nature and does not have regard to the particular circumstances or needs of any specific person who may read it. Associate Director Zenith Investment Partners Pty Ltd (03) 9642 3320 glen.franklin@zenithpartners.