Value Investment Partners

VIP Balanced Portfolio

MDA Class
SMA Class

A diversified portfolio taking advantage of all market cycles.

The portfolio aims to provide investors with a combination of capital growth and income over the medium to long term from investment within a diversified portfolio balanced among growth and defensive assets.

The portfolio suits an investor seeking a balanced portfolio between growth and defensive assets, modest income, and is prepared to invest for the minimum suggested time frame of five to seven years.

The key strategy behind the portfolio is active Tactical Asset Allocation where the managers adjust the underlying asset class exposures to benefit from market movements.

For more information about this portfolio, click here.

Portfolio Strategic Asset Allocation

Portfolio Reports

frequently asked questions

This portfolio can be invested in the ASX 200, companies all around the world, and have investments in loans to governments and companies worldwide. Unlike most other investment managers at any point in time as a client you will be able to use your login to see what you are invested in.

Being an active manager at times when volatility is high and it is required to protect investor capital the frequency of trading can become very high potentially a couple times a week, but in normal market environments trading on a portfolio wide level occurs quarterly. Albeit in mind that throughout each quarter positions can be introduced, eliminated, increased, or reduced as the investment committee decides.

When investing in Value Investment Partners, investors are able to see their direct investments at any time through our portal. If these investments include managed funds, the holdings within these managed funds will usually be able to be provided at request, although this is at the discretion of the underlying fund manager.

We believe that giving investors exposure to companies who are considering the long-term potential impacts of environmental, social, and governance (ESG) risks to their businesses and their industry group is part of long-term capital protection and risk management. Because many ESG risks pose material threats to the future of a business’s profitability but have a low probability of eventuating, we believe that seriously considering these risks as part of managing tail risk exposure of our investments.

This portfolio does include share dividends in it’s distribution, which are reinvested in the portfolio when it is rebalanced. While the level of franking will fluctuate depending on what securities are held, as franking credits are only given to the associated revenue and tax earned and paid in Australia. Resulting in the overall portfolio is not fully franked.

There are three main components of the costs associated with an investment such as this. 

The first being your management fee which is 0.88% (including GST) per annum calculated daily on the portfolio value. That is the simplest cost unchanged throughout the year and applied the same on every dollar of your portfolio.

The second is your administration fee and this is a tiered cost depending on the total value of the portfolio/s you have with VIP but is capped at $2,100 per annum. Details on the different fee categories for administration can be found in the Investment Option Document and/or Members Guide.

The third major cost component is brokerage and this is a moderately variable part of your total annual cost. In market environments that are highly volatile and require more frequent portfolio changes to protect capital, brokerage costs may be higher. In normal market environments portfolio turnover is constantly considered by the portfolio manager to optimise the trade off between high frequency of trading eroding outperformance and maximising client returns. Although there is a moderate variability in the brokerage costs it is a small part of the three major components of the total annual cost of the investment.

Volatility is managed constantly within the portfolio. This is achieved firstly by diversifying the holdings effectively in order to minimise company-specific risk. Diversification also extends to asset classes, where a combination of growth and defensive assets make up the portfolio to ensure clients always have exposure to a performing asset class in any market condition.

Value Investment Partners is not a hedge fund and does not take hedging positions with derivative contracts. Derivatives are financial instruments that derive their value is based on an underlying security, such as a stock. This portfolio does not directly use derivatives. 

When markets suffer declining price Value Investment Partners has successfully demonstrated our ability to reduce losses by investing in traditionally defensive assets that perform well relative to others in negative market environments. These assets include but are not limited to; cash, bonds, US dollars, gold, and consumer staples companies.

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